Saudi Arabia Overtime Pay is an important topic for construction workers who regularly work long shifts, rest days, or public holidays. This guide explains overtime calculations, salary allowances, Ramadan working hours, and steps to take if your overtime payment is incorrect.
This guide explains, in plain language, what counts as overtime under Saudi law, the exact formula for calculating it, worked examples using typical construction salaries, the 2025 changes to the law, and what to do if your employer is underpaying you.
Why Overtime Pay Matters So Much in Construction
Many construction workers in Saudi Arabia earn a modest basic salary, and overtime can make up a large share of their monthly income. When a project falls behind schedule, foremen often ask crews to work late, come in on rest days or work extra shifts during busy periods.
If overtime is calculated incorrectly, even by a small amount per hour, the loss adds up quickly. A worker who is underpaid two riyals per overtime hour and works 60 overtime hours a month loses SAR 120 every month, or more than SAR 1,400 a year. Over a two-year contract, that becomes a serious amount of money.
Knowing the formula protects you. It lets you check your payslip, raise questions with confidence and, if necessary, make a complaint backed by clear numbers.
Normal Working Hours Under Saudi Labor Law
Before you can calculate overtime, you need to know where normal hours end.
Standard Working Hours (Article 98)
Under Article 98 of the Saudi Labor Law, the standard working time is:
- 8 hours per day, or
- 48 hours per week
Some employers use a daily schedule and others a weekly one. This matters because it affects how overtime is counted.
Working Hours During Ramadan
During Ramadan, working hours for Muslim employees are reduced to 6 hours per day or 36 hours per week. Any hours worked beyond this reduced schedule during Ramadan count as overtime.
Rest Breaks and Daily Limits
Workers should not work more than five hours in a row without a break of at least 30 minutes for rest, prayer and food, and the total time spent at the workplace, including breaks, should not normally exceed 12 hours in a day.
What Counts as Overtime in Saudi Arabia?
For construction workers, overtime generally includes:
- Hours beyond 8 per day or 48 per week (or beyond 6/36 during Ramadan for Muslim workers).
- Work on your weekly rest day. For most workers, this is Friday.
- Work on official public holidays, such as Eid al-Fitr, Eid al-Adha and Saudi National Day.
So if your supervisor asks you to come in on Friday to pour concrete, those hours are overtime, even if you didn’t work extra hours during the rest of the week.
Annual Overtime Limit: 720 Hours
According to the Ministry of Human Resources and Social Development, overtime is capped at 720 hours per year, though this can be increased with the worker’s approval. That works out to about 60 hours a month on average.
The Overtime Formula: Article 107 Explained
This is the most important part of the guide. Article 107 of the Saudi Labor Law sets out how overtime must be paid. The Ministry’s rule is that for each overtime hour, the employer must pay the hourly wage plus 50% of the basic wage.
Basic Wage vs Actual Wage
The key point many workers miss is that this formula uses two different wages:
- Basic wage: Your contractual base salary, before any allowances.
- Actual wage: Your basic salary plus fixed allowances such as housing, transport and any other allowance paid regularly every month.
The first part of the overtime hour is calculated from the actual wage, while the 50% premium is calculated from the basic wage only.
Step-by-Step Overtime Calculation Formula
Step 1: Find your actual hourly wage
Actual hourly wage = (Basic salary + fixed allowances) ÷ 30 ÷ 8
(Dividing by 30 days and 8 hours means dividing the monthly figure by 240.)
Step 2: Find your basic hourly wage
Basic hourly wage = Basic salary ÷ 240
Step 3: Calculate the 50% premium
Premium = Basic hourly wage × 0.5
Step 4: Find your overtime hourly rate
Overtime hourly rate = Actual hourly wage + Premium
Step 5: Calculate total overtime pay
Total overtime pay = Overtime hourly rate × Number of overtime hours
Overtime Pay Calculation Examples for Construction Workers
Example 1: A Typical Construction Worker
Let’s take a worker on a building site with this monthly package:
| Item | Amount (SAR) |
|---|---|
| Basic salary | 1,500 |
| Housing allowance | 375 |
| Transport allowance | 150 |
| Total (actual wage) | 2,025 |
- Step 1 – Actual hourly wage: 2,025 ÷ 240 = SAR 8.44
- Step 2 – Basic hourly wage: 1,500 ÷ 240 = SAR 6.25
- Step 3 – 50% premium: 6.25 × 0.5 = SAR 3.13
- Step 4 – Overtime hourly rate: 8.44 + 3.13 = SAR 11.56 per overtime hour
- Step 5 – Total for the month: If this worker did 40 overtime hours: 11.56 × 40 = SAR 462.50
Example 2: Working on Friday (Rest Day)
Using the same worker, suppose the site manager asks the crew to work an 8-hour shift on Friday to meet a deadline. All 8 hours are overtime because Friday is the weekly rest day.
8 × 11.56 = SAR 92.50 for the Friday shift
This should be paid in addition to the worker’s normal monthly salary. The employer cannot simply treat the Friday as a regular working day.
Example 3: A Long Weekday Shift
A steel fixer with a basic salary of SAR 2,000 and allowances of SAR 700 (total SAR 2,700) works 11 hours on a Tuesday.
- Normal hours: 8
- Overtime hours: 3
- Actual hourly wage: 2,700 ÷ 240 = SAR 11.25
- Basic hourly wage: 2,000 ÷ 240 = SAR 8.33
- Premium: 8.33 × 0.5 = SAR 4.17
- Overtime hourly rate: 11.25 + 4.17 = SAR 15.42
3 overtime hours × 15.42 = SAR 46.25 for that day.
If the worker does this five days a week for four weeks (60 overtime hours): 60 × 15.42 = SAR 925 extra for the month.
Example 4: Overtime During Ramadan
During Ramadan, a Muslim worker’s normal day is 6 hours. If a supervisor keeps the crew working the usual 8 hours, the extra 2 hours each day are overtime.
Using the first worker (overtime rate SAR 11.56):
- 2 overtime hours per day × 26 working days = 52 hours
- 52 × 11.56 = SAR 601 in Ramadan overtime
Many workers don’t realize their usual 8-hour day becomes partly overtime during Ramadan. Check your payslip for that month carefully.
Example 5: Working on Eid or National Day
Work on official public holidays is also overtime. If our first worker is called in for 8 hours on Saudi National Day:
8 × 11.56 = SAR 92.50
The worker is still entitled to the paid holiday itself, so this overtime is on top of normal pay for that day.
The Common Mistake: “Basic × 1.5”
Many employers and payroll systems use a shortcut: they take the basic hourly wage and multiply it by 1.5. Using Example 1:
6.25 × 1.5 = SAR 9.38 per hour
Compare that to the correct figure of SAR 11.56. The shortcut underpays the worker by about SAR 2.19 for every overtime hour. Over 40 hours, that’s SAR 87.50 lost in a single month. Over a year, more than SAR 1,000.
The “hourly rate × 1.5” shortcut is only correct when the entire salary is basic pay with no allowances at all. Most construction workers receive housing and transport allowances, so the shortcut usually works against them.
2025 Saudi Labor Law Update: Time Off Instead of Overtime Pay
The Saudi Labor Law was amended, with changes taking effect in February 2025. One change affects overtime directly.
Under the amendment, employers may either pay the overtime premium or give paid time off equal to the overtime hours worked. Importantly, this compensatory leave option requires the worker’s consent.
What This Means for Construction Workers
- Your employer cannot force you to accept time off instead of money. You must agree.
- If you agree to time off, make sure the agreement is in writing and states clearly how many hours or days you will receive.
- Keep a record of when you actually take the time off.
For many workers sending money home to their families, cash overtime is usually more valuable than extra days off. Think carefully before agreeing to change.
Summer Midday Work Ban and Overtime
Saudi Arabia bans outdoor work in direct sunlight during the hottest hours of summer, generally from 12:00 noon to 3:00 pm between 15 June and 15 September. This rule exists to protect workers from heatstroke and heat exhaustion.
How the Midday Ban Affects Your Overtime
- Shifted schedules: Employers often start very early or finish late in the evening. Make sure your total daily hours are still tracked correctly, and that anything beyond 8 hours is paid as overtime.
- Breaks don’t erase hours: If you start at 5:00 am, rest from noon to 3:00 pm and work again until 7:00 pm, add up your actual working hours to see if overtime applies.
If your employer makes you work outdoors during banned hours, that is a violation you can report to the Ministry.
How to Keep Track of Your Overtime Hours
Payroll mistakes are easier to fix when you have your own records. Here’s a simple system:
- Keep a daily log. Write down your start time, break times and finish time every day. A notebook or a notes app on your phone works fine.
- Take photos. If your site uses a time sheet or attendance board, photograph it regularly.
- Save messages. If a supervisor asks you to work extra hours by WhatsApp or text, save those messages.
- Check your payslip every month. Compare the overtime hours and amount against your own log.
- Know your salary breakdown. Look at your contract or Qiwa profile to confirm your basic salary and each allowance. You need both numbers for the Article 107 formula.
Wage Protection System (WPS): How Your Salary Is Paid
Saudi Arabia uses a Wage Protection System (WPS), which requires employers to pay salaries through banks and report payments to the authorities. This creates an official record of what you were paid.
If your overtime is missing or too low, your bank statements and payslips become strong evidence. Make sure your salary comes into a bank account or approved payroll card in your name.
What to Do If Your Overtime Pay Is Wrong
If you believe you’ve been underpaid, follow these steps:
Step 1: Talk to Your Employer First
Speak to your supervisor, site HR or the payroll office. Bring your calculations and your time records. Many errors are simple payroll mistakes that can be fixed quickly.
Step 2: Put It in Writing
If a conversation doesn’t solve it, send a written request (email or letter) explaining the hours worked, the amount you believe is owed and how you calculated it.
Step 3: Contact the Ministry of Human Resources (MHRSD)
The Ministry of Human Resources and Social Development handles labor complaints. You can reach its call center on 19911 or use its online services. Complaints are usually first sent to an amicable settlement process, where both sides try to reach agreement.
Step 4: Go to the Labor Court If Needed
If settlement fails, the case can be referred to the labor courts. Your records, payslips and bank statements will be your main evidence.
Step 5: Don’t Wait Too Long
Labor claims have time limits, and claims are generally expected to be raised within 12 months of the end of the employment relationship. Raise the issue as soon as you notice it rather than waiting until your contract ends.
Penalties for Employers
Employers who break working-hour rules face real penalties. The Ministry has said employers can be fined SAR 10,000 per employee when working hours exceed the legal limit without properly commissioning overtime.
Quick Overtime Checklist for Construction Workers
Use this list each month:
- ☐ Do I know my basic salary and each allowance separately?
- ☐ Did I calculate my actual hourly wage (total ÷ 240)?
- ☐ Did I calculate the 50% premium from my basic wage only?
- ☐ Did I count Friday and holiday work as overtime?
- ☐ During Ramadan, did I count hours beyond 6 per day as overtime?
- ☐ Does my payslip match my own time records?
- ☐ If I agreed to time off instead of pay, is it in writing?
Frequently Asked Questions (FAQs)
Is overtime compulsory in Saudi Arabia?
Employers can ask for overtime when work requires it, but it must be paid according to Article 107 and stay within legal limits, including the 720-hour annual cap unless you agree to more.
Do allowances count in overtime pay?
Yes. Fixed allowances such as housing and transport are included in the actual hourly wage. Only the 50% premium is calculated from the basic salary alone.
Can my employer pay a fixed monthly overtime amount?
Some employers pay a flat overtime allowance. This is only acceptable if it equals or exceeds what you’d receive under the Article 107 formula for the hours you actually worked. If you work more hours than the flat amount covers, you may be owed the difference.
Does overtime apply to workers on daily wages?
Yes. Daily-wage workers are also protected. Divide the daily wage by 8 to get the hourly rate, and apply the same formula.
What if I’m paid less than the minimum wage?
Saudi Arabia’s official minimum wage applies mainly to Saudi nationals. Foreign workers’ wages are set by contract, but overtime rules under Article 107 apply to everyone covered by the Labor Law.
Final Thoughts
Overtime is not a favor from your employer. It is a legal right under Article 107 of the Saudi Labor Law. For construction workers, who often work long hours in tough conditions, understanding this formula can mean hundreds or even thousands of riyals each year.
Remember the core rule: actual hourly wage (including allowances) plus 50% of the basic hourly wage, for every overtime hour. Keep your own records, check every payslip and speak up early if something looks wrong.