Price your extra hours the way the statute does
Enter the basic wage, the fixed allowances and the number of extra hours, and the calculator prices each overtime hour the way Article 107 of the Saudi Labour Law defines it: the actual hourly wage plus 50% of the basic hourly wage. The reference is the Labour Law issued by the Ministry of Human Resources and Social Development.
Overtime looks like the simplest line on a payslip: an extra hour, a higher rate. But Article 107 of the Saudi Labour Law is not a single multiplier. It adds two amounts drawn from two different wages, and that is where most of the gap between an employee's own maths and the payroll figure comes from.
This overtime calculator applies the text as written: it prices the hour from the actual wage, adds 50% of the basic hourly wage, multiplies by your extra hours and shows the breakdown line by line. Enter your numbers once and see how the figure was reached, not just the figure.
What is the overtime calculator?
A free tool that works out overtime pay for private-sector employees in Saudi Arabia. It runs instantly with no submit button and recalculates on every keystroke. It separates two kinds of hours: extra hours on ordinary working days, and hours worked on weekly rest days and Eid holidays. Alongside the amount due it shows the basic hourly wage, the actual hourly wage, the overtime hourly rate and the total pay for the month, plus the compensatory-leave equivalent in hours.
How is overtime calculated under Saudi labour law?
Article 107 requires the employer to pay the worker, for overtime hours, an additional wage equal to the hourly wage plus 50% of the basic wage. The overtime hour is therefore made of two amounts:
| Component | Taken from | How it is derived |
|---|---|---|
| The hourly wage | Actual wage | Basic wage plus allowances, divided by 30 and then by the daily working hours |
| The 50% premium | Basic wage | Half the hourly wage derived from the basic wage on its own |
A worked example on a basic wage of 2,400 with 1,800 in allowances, an 8-hour day and three extra hours:
- Basic hourly wage: 2,400 / 30 / 8 = 10.
- Actual hourly wage: 4,200 / 30 / 8 = 17.50.
- Overtime hourly rate: 17.50 + (50% x 10) = 22.50.
- Due for three hours: 3 x 22.50 = 67.50.
Why a flat 1.5x is not the same answer
Most calculators available online multiply the hourly wage by 1.5 and stop. That is right in exactly one case: when there are no allowances, so the basic and actual wages are the same figure. With allowances the two results part company, because the statutory premium is computed on the basic wage and not on the actual one:
| Case | Actual hourly wage x 1.5 | The statutory formula |
|---|---|---|
| Basic 9,600, no allowances | 60.00 | 60.00 |
| Basic 2,400 plus 1,800 allowances | 26.25 | 22.50 |
Both columns show the rate for a single overtime hour. The gap is not an arithmetic error in either method; it is a difference in which wage carries the premium. Article 107 settles it: the premium is 50% of the basic wage.
Hours worked on rest days and Eid holidays
The Labour Law counts every hour worked on a holiday or an Eid as an overtime hour, meaning the overtime rate applies from the first hour without waiting for the daily or weekly cap to be exceeded. The law sets no higher multiplier for those days; the rate is the ordinary overtime rate. Because some contracts and company work regulations do grant 200% on those days, the calculator offers it as a contractual option rather than a statutory one.
The working-hour caps themselves come from Article 98: eight hours a day or forty-eight hours a week, reduced to six hours a day for Muslim employees during Ramadan. That is why the daily working hours field stays editable in the calculator; changing it changes the hourly wage itself.
Why use the Qoyod overtime calculator
- The statute, not an approximation: separate fields for the basic wage and allowances, so each premium is computed on the correct wage.
- Holiday hours kept apart: a dedicated line for rest day and Eid hours with its own rate, and a breakdown showing what each kind of hour contributes.
- A flexible working day: the daily working hours are an input, so Ramadan schedules and non-eight-hour shifts are covered.
- Six currencies: pick yours and every amount and its decimal places follow. The calculator labels what you enter and does not convert between currencies.
- The compensatory-leave alternative: the hour equivalent sits beside the cash amount, because Article 107 permits both.
Related tools
Work out end-of-service entitlements with the end of service calculator, or a monthly net salary with the salary calculator. To post payroll and its expenses in your books, see Qoyod accounting software.
Have a few questions?
Direct answers to what employees and employers ask about overtime hours.
How is overtime calculated in Saudi Arabia?
The overtime hour equals the actual hourly wage plus 50% of the basic hourly wage, in the words of Article 107 of the Labour Law. The hourly wage is derived by dividing the monthly wage by 30 days and then by the daily working hours. On a basic wage of 2,400 with 1,800 in allowances and an 8-hour day, the basic hourly wage is 10, the actual hourly wage is 17.50, and the overtime hour is 22.50.
Is multiplying the hourly wage by 1.5 enough?
Only when the employee has no allowances, because the basic and actual wages are then the same figure. Once allowances exist the two formulas diverge: Article 107 adds 50% of the BASIC wage, not 50% of the actual wage, so multiplying the actual hourly wage by 1.5 lands above the statutory minimum.
What rate applies to rest days and Eid holidays?
The Labour Law counts every hour worked on a holiday or an Eid as overtime, and sets no multiplier higher than the ordinary overtime rate. A 200% rate comes from the contract or the employer's work regulations, which is why the calculator offers it as an option and never as the default.
Is the wage divided by 30 days or by the actual working days?
By 30. The basis is the monthly wage divided by 30, whether that month held 22 working days or 26, and the result is then divided by the daily working hours.
What is compensatory leave instead of overtime pay?
Article 107 lets the employer, with the employee's consent, grant paid compensatory leave in place of the pay owed for overtime hours. The calculator shows the hour equivalent of that alternative next to the cash amount; choosing between them remains a matter of agreement.
Is the calculator officially certified?
No. It is a free guidance tool that applies the formula set out in the Labour Law. The official reference is the Labour Law and its regulations and the Ministry of Human Resources and Social Development, and an employment contract or company policy may grant terms more favourable to the employee.