What does Article 107 say?
Article 107 of the Saudi Labor Law says the employer pays "the hourly wage plus 50% of the employee's basic wage" for each overtime hour. The Labor Law defines "wage" as the actual wage: the basic wage plus allowances such as housing and transport (Article 2).
So Saudi overtime has two parts:
| Part | Wage used | Formula |
|---|---|---|
| The hour itself | Actual wage | Actual monthly wage ÷ 30 ÷ 8 |
| The extra 50% | Basic wage | Basic monthly wage ÷ 30 ÷ 8 ÷ 2 |
| Overtime rate | Both | The two added together |
- 1Find your actual wage and your basic wage
- 2Divide each by 30 and by 8
- 3Take half of the basic hourly wage
- 4Add it to the actual hourly wage
- 5Multiply by your overtime hours
HRSD's own example
The 2025 awareness guide of the Ministry of Human Resources and Social Development (HRSD) gives this example:
- Actual wage SAR 6,000, so 6,000 ÷ 30 ÷ 8 = SAR 25 an hour.
- Basic wage SAR 4,000, so 4,000 ÷ 30 ÷ 8 = SAR 16.67 an hour, and half of it is SAR 8.33.
- Overtime rate: 25 + 8.33 = SAR 33.33 an hour.
- 3 overtime hours: 3 × 33.33 = about SAR 100 (exactly 100 without rounding).
The divisor is 30 days × 8 hours = 240, because the law counts a month as 30 days (Article 2). Calculators that divide by 26 days or 208 hours do not follow it.
Why 1.5 times basic is wrong
Take a basic wage of SAR 3,000 with housing SAR 750 and transport SAR 300, so the actual wage is SAR 4,050. The worker does 18 overtime hours in a month.
| Method | Working | Pay for 18 hours |
|---|---|---|
| Article 107, as HRSD does it | (4,050 ÷ 240 + 3,000 ÷ 240 ÷ 2) × 18 | SAR 416.25 |
| 1.5 × basic only | 3,000 ÷ 240 × 1.5 × 18 | SAR 337.50 |
| Difference | SAR 78.75 a month |
Over a year of 18 hours a month that is SAR 945 less for the worker.
Which hours count as overtime?
| Situation | Overtime? | Law |
|---|---|---|
| Hours above 8 a day or 48 a week | Yes | Art. 98, 107 |
| Ramadan, Muslim workers: hours above 6 a day or 36 a week | Yes | Art. 98 |
| Any hour worked on Eid or an official holiday | Yes, all of it | Art. 107(3) |
| Hours above the weekly standard where work is set by the week | Yes | Art. 107(2) |
The official holidays are Eid al-Fitr (4 days), Eid al-Adha (4 days from the day of Arafat), National Day and Founding Day. Many websites say holiday work is paid "double". The law does not say that: it pays the same Article 107 rate, but for every hour worked that day.
Ramadan example: a Muslim worker on the wage above is kept at 8 hours a day for 20 days of Ramadan. That is 2 overtime hours a day, 40 hours in all: 40 × 23.125 = SAR 925.
How many overtime hours are allowed?
The Implementing Regulations cap overtime at 720 hours a year, as HRSD states it, and more is allowed only with the worker's consent. In the special cases of Article 106 (stocktaking, emergencies, unusual pressure of work, Eid and seasons) the day can go up to 10 hours and the week to 60.
New in 2025: paid leave instead of overtime pay
Since the amendments of Royal Decree M/44 came into force on 19 February 2025, the employer may give paid compensatory leave instead of overtime pay, but only with your consent (Article 107). HRSD's guide sets the terms:
- At least 1.5 hours of leave for each overtime hour.
- Used within 60 days, unless you agree otherwise.
- At most 30 days of such leave a year.
So 10 overtime hours become at least 15 hours of paid leave. If you do not agree, you are paid in money.
Keep your own record of the dates and hours, and whether it was a working day, Ramadan or a holiday.
Common mistakes
- Paying 1.5 × basic. It leaves out the allowances that the hour itself is paid on.
- Dividing by 26 or 208. HRSD divides by 30 and 8.
- Missing Eid and National Day hours. Every hour on those days is overtime.
- Swapping pay for leave without asking. Since 2025 that needs your consent.
Unpaid overtime is part of what you are owed when you leave. Add it in the Saudi final settlement calculator.
Work out your own Saudi overtime pay →
This is an estimate under the published law, not legal advice. Your employer, HRSD or a labour court gives the final figure.
Questions people ask about Saudi overtime
How is overtime calculated in Saudi Arabia? The hourly actual wage plus 50% of the hourly basic wage, for each overtime hour (Article 107). Both are worked out on 30 days of 8 hours.
Is overtime in Saudi Arabia paid on basic or total salary? On both: the hour on the actual wage, the extra 50% on the basic wage.
What are the working hours in Saudi Arabia? 8 hours a day or 48 a week, and 6 a day or 36 a week in Ramadan for Muslim workers (Article 98).
Is working on Eid overtime in Saudi Arabia? Yes. All hours worked on holidays and official vacations are overtime (Article 107).
Can my employer give leave instead of overtime pay? Only with your consent, since 19 February 2025: at least 1.5 hours of leave per overtime hour.
Sources
- HRSD: awareness guide on the rights and duties of employers and workers (2025) (overtime example, compensatory leave, hours)
- HRSD: amendments to the Labor Law, before and after (2025) (Article 107)
- Saudi Labor Law, English text on HRSD (Articles 2, 106, 107)
- HRSD knowledge centre: overtime (720 hours a year)
This guide is general information, checked in November 2026. Rules can change, so confirm with HRSD.