3.02.2011

Overtime rules in Kingdom - Saudi Labour Law

Iam an OFW (Overseas Filippino Worker) working in a scaffolding company in Dammam, Kingdom of Saudi Arabia. Even though I have worked overtime many days in last month, it did not include in my daily time card by my supervisor. When I complaint to my project manager, he asked me proof for overtime for make payment. What kind of proof I have to produce? What is the prevailing rule of overtime in kingdom?

It is to be noted by all employees to obtain written specific direction from the employer to do overtime or obtain signature of your immediate supervisor in the specific overtime sheet after completion of your work. In case of any confusion arise and no written instruction or any kind of proof, it is very difficult to prove the overtime hours and it will be considered voluntarily work from the part of the employee.

Overtime is the additional amount paid to employees who work more than 8 hours in a day. Saudi labour law requires that an employee has to work 8 hours a day and 48 hours a week. Beyond every hour, the employer need to pay equal to the hourly wage plus 50 % of this amount.

Article 98 of the Saudi labour law says, a worker may not actually work for more than eight hours a day if the employer uses the daily work criterion or more than forty-eight hours a week if he uses the weekly criterion. During the month of Ramadan, the actual working hours for Muslims shall be reduced to a maximum of six hours a day or thirty-six hours a week.

Mode of calculation of Overtime

To get overtime rate of an employee, we need to multiply 1. 5 with his hourly rate. Basic salary of an employee divided by 30.4, then we get his one day salary. Then divided it by 8 hours and multiply by 1.5

For example, if an employee’s basic salary is SR.2000.00

2000 / 30.4 = 65.79 (one day salary)
65.79 / 8 hrs = 8.23 (hourly rate)
8.23 x 1.5 = 12.35 (overtime rate).

Normally every employee need to work as per the above mentioned working schedule. As per Article 99, some categories of workers or in certain industries and jobs where the worker does not work continuously are the exemptions of this normal rule. Their employer can raise their working hours according to the situation, but there is limit.

Likewise, it may be reduced seven hours a day for certain categories of workers, industries and jobs or in certain hazardous and harmful industries or jobs.

Article 100 says, in firms where work is done in shifts, an employer may, with the Ministry’s approval, increase the number of working hours to more than eight hours a day or forty eight hours a week, provided that the average working hours in three weeks time shall not be more or less than eight hours a day or forty eight hours a week.

The daily 8 hours stipulation and a worker shall not be worked for more than 5 consecutive hours shall not be apply for the below mentioned category of employees by Article 108.

1. Persons occupying high positions of authority in management and policy, if such positions grant the persons occupying them authority over workers.
2. Preparatory or supplemental works which must be completed before or after commencement of work.
3. Work that is intermittent by necessity.
4. Guards and janitors, excluding civil security guards.

These are the legal position of overtime in Kingdom of Saudi Arabia.