Saturday, March 8, 2025
This is how overtime hours are calculated for Employees in Saudi Arabia
The Ministry of Human Resources and Social Development in Saudi Arabia has released new guidelines for private sector workers overtime pay, including how to account for time worked on special occasions, holidays, and in the event of an emergency. Trending: New amendments of Saudi Labor law
Since some businesses do not pay the proper rate for these hours, this decision was made to ensure that the worker may collect his right. In accordance with the rulings made by the appropriate authorities.
Overtime calculation in Saudi Arabia:
Companies and businesses in Saudi Arabia generally implement a 48-hour work week cap, which equates to no more than 8 hours of labor every day. The employee is entitled to overtime compensation in the event that these hours are exceeded.
Every hour worked beyond the normal workweek is subject to a 50% financial increase, as mandated by the Ministry. For example, if a worker earns 20 Saudi Riyals per hour, they must be paid an additional 30 Saudi Riyals for each hour worked extra.
Overtime hours are the hours that workers put in on holidays and other special events. The employer must pay overtime at 150% of the base wage. If an employee makes 20 Saudi Riyals per regular hour, the overtime hour should be paid at 50 Saudi Riyals. Most Viewed: Updated regulations for domestic workers
Penalties for non-payment of Overtime:
Overtime should not exceed 720 hours per year, according to the Ministry, which reviewed all the information of employees overtime at their individual institutions. An employee's written authorization is required if they intend to work overtime beyond this limit.
Companies are also required by the government to compensate workers for these extra hours worked. In the event that the employer does to adhere to these requirements, they will be subject to penalties such as:
* If the employer does not pay their employees wages when they are due, they will be penalized.
* This establishment will have its services suspended by the ministry if the same violation occurs again. There will be no reopening of the business until all accounts are paid in full. Read: Saudization of 269 professions
* The barring of this institution from employing new staff for a limited time is seen as a disciplinary action against them.
* The government agency also mandated that businesses keep records of their employees' overtime hours worked so that they may be accessible when necessary.
* Unless there is an absolute emergency, the authority has also stressed the requirement of giving the worker advance notice of any overtime that will be required of them.
* The employee's consent is required before any overtime hours are exceeded. See Also: Companies with 50 or more employees must disclose training data
How many hours are worked in the private sector?
Every business or organization must adhere to a strict 8-hour workday policy. The employee's approval is necessary in the event that the company wants to have them work more hours. Documentation of this agreement is required.
How are overtime hours calculated?
The calculation of employees overtime hours was highlighted by the ministry. For example, if an employee's hourly wage is 20 Saudi Riyals, their overtime rate is 50 Saudi Riyals per hour. Join Saudi Expatriates channel on WhatsApp
This is how overtime hours are calculated for Employees in Saudi Arabia
