Overtime Pay in Saudi Arabia (2026): Calculation, Rules and Compensatory Leave

Who does this guide cover?

This guide focuses on the general rules for workers covered by Saudi Labour Law. Domestic workers and some other categories or activities may be covered by separate regulations, and specific exceptions apply to certain working-time rules. Do not apply the example mechanically without checking the employment contract and the rules that cover your role.

When do hours count as overtime?

Normal hours depend on the statutory rules and the working-time arrangement that applies. As a general rule, the ordinary limit is eight actual hours per day where the daily standard applies, or 48 hours per week where the weekly standard applies. For Muslim workers, actual hours during Ramadan are reduced to six per day or 36 per week, subject to the applicable exceptions and special rules.

• Where the establishment uses a weekly working-hours standard, hours beyond that standard count as overtime.
• Hours worked during holidays and Eids are treated as overtime under Article 107.
• Special arrangements and exceptions may apply depending on the type of work and worker category, so check the applicable contract and regulation.

How is overtime pay calculated?

The Ministry of Human Resources and Social Development illustrates the calculation by using the actual hourly wage, then adding half of the basic hourly wage. In the Ministry’s example, the actual wage includes basic salary and allowances/bonuses, while the 50% premium is based on the basic wage. Check your contract and work regulations for the wage components that apply to you, especially if you receive variable pay or commissions.

Worked example from the Ministry’s guide

Assume a monthly basic salary of SAR 4,000, an actual monthly wage of SAR 6,000 for the example, and three overtime hours. The example uses a calculation basis of 30 days per month and eight working hours per day:

1. Actual hourly wage: SAR 6,000 ÷ 30 ÷ 8 = SAR 25.
2. Basic hourly wage: SAR 4,000 ÷ 30 ÷ 8 ≈ SAR 16.67.
3. 50% of the basic hourly wage: SAR 16.67 × 50% ≈ SAR 8.33.
4. Overtime pay per hour: SAR 25 + SAR 8.33 ≈ SAR 33.33.
5. Pay for three hours: SAR 33.33 × 3 ≈ SAR 100.

This is the Ministry’s illustrative example, not a guaranteed result for every employment contract. The calculation may differ based on wage components, the applicable working-hours arrangement and the nature of the job. Ask HR for a breakdown if you have variable pay or a special arrangement.

Should overtime assignments be documented?

Article 29 of the Implementing Regulations says that overtime must be assigned through a written or electronic instruction directed to the worker by the responsible party at the establishment, stating the number of overtime hours and the required days. Under the 2025-updated Implementing Regulations, Article 16 states that overtime wages due must be paid at the end of the month in which the overtime assignment was made. If the payment date coincides with the weekly rest day or an official holiday, payment is made on the preceding business day under Article 17.

In practice, keep lawful records available to you: the assignment message, attendance records, shift schedules, messages about the hours and your pay statement. These help you compare the hours recorded with the amount paid.

Can paid compensatory leave replace overtime pay?

Yes, with the worker’s consent and according to the agreement between the parties. The Implementing Regulations set out these conditions:

• The compensatory leave must be at least one and a half hours for every overtime hour.
• The employer may set the time for taking the leave within 60 days of the overtime work, unless the parties agree otherwise.
• The total compensatory leave may not exceed 30 days in a year.
• If the worker leaves employment before using accrued compensatory leave, the worker is entitled to its pay under the Regulations.

Do not assume compensatory leave can be imposed in place of cash payment without consent; check Article 107, the Implementing Regulations and any written agreement relevant to your circumstances.

Is there an annual overtime limit?

The Ministry’s overtime page states that overtime hours should not exceed 720 hours in a year, while allowing an increase with the worker’s consent. Because working-time limits and exceptions can vary by case, check the latest official rules when overtime is extensive or recurring.

What if my overtime was not recorded or paid?

1. Record the dates and actual hours, and keep the assignment message, attendance record and pay statement.
2. Ask HR in writing to review the recorded hours and calculation, and keep the employer’s response.
3. If the issue is not resolved, consult the Ministry’s official channels to identify the appropriate inquiry or complaint route for your case.

If you need to make a written HR request, use the KSA Tools letter generator and adapt the text to your circumstances.

Do not share login credentials or banking details in untrusted messages. Avoid including colleagues’ personal information or documents when recording your own claim.

Frequently asked questions