Saudi Arabia Overtime Rules: Article 107 Explained with Examples

By Ammar Aslam · Updated September 29, 2026

Overtime is one of the most misunderstood parts of Saudi payslips. Article 107 of the Saudi Labour Law sets a clear formula, but many workers are not sure which salary it uses. This guide explains it step by step.

Normal working hours

• Up to 8 hours a day or 48 hours a week.
• During Ramadan, up to 6 hours a day or 36 hours a week for Muslim workers.
• Anything above these limits, and any work on rest days or official holidays, counts as overtime.

The Article 107 formula

For each overtime hour, the employer must pay the actual hourly wage plus 50% of the basic hourly wage.

• Actual hourly wage = total monthly wage (basic plus regular allowances) ÷ 30 ÷ daily working hours.
• Basic hourly wage = basic salary ÷ 30 ÷ daily working hours.
• Overtime rate = actual hourly wage + (basic hourly wage × 0.5).

Worked example

Basic salary SAR 4,000, housing and transport SAR 1,500 (total SAR 5,500), 8-hour days, 20 overtime hours in a month:

• Actual hourly wage: 5,500 ÷ 240 = SAR 22.92
• Basic hourly wage: 4,000 ÷ 240 = SAR 16.67; 50% = SAR 8.33
• Overtime rate: 22.92 + 8.33 = SAR 31.25 per hour
• Overtime pay: 31.25 × 20 = SAR 625

Try your own numbers in our Saudi overtime calculator.

Common payslip mistakes

• Paying overtime at the normal hourly rate with no premium.
• Calculating on basic salary only, which lowers the actual-wage part of the formula.
• Not counting Eid or National Day work as overtime.
• Not recording overtime hours at all.

Keep your own records

Write down the dates and hours you work overtime, and keep any messages asking you to stay late. If there is a dispute, contact the Ministry of Human Resources and Social Development (hrsd.gov.sa).

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