1. What is Overtime Pay Calculation?

Overtime pay calculation determines the additional compensation employees receive for working beyond their regular hours, typically at a higher rate (e.g., 1.5 times the regular hourly wage) as per labor laws in regions like KSA or Dubai.

2. How Does the Calculator Work?

The calculator uses the overtime formula:

Where:

• \( \text{Hourly Wage} \) — Regular hourly wage (e.g., SAR/hour)
• \( 1.5 \) — Overtime multiplier (standard rate)
• \( \text{Overtime Hours} \) — Number of overtime hours worked

Explanation: The equation calculates the total overtime pay by multiplying the adjusted hourly wage (1.5 times the regular rate) by the number of overtime hours.

3. Importance of Overtime Calculation

Details: Accurate overtime calculation ensures compliance with labor regulations, fair compensation for employees, and proper payroll management in regions like KSA and Dubai.

4. Using the Calculator

Tips: Enter the hourly wage in the local currency (e.g., SAR) and the number of overtime hours. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Is the overtime rate always 1.5 times?
A: Typically, yes, for most standard overtime scenarios in KSA and Dubai, but always check local regulations as rates can vary.

Q2: What if overtime is on a public holiday?
A: Rates may be higher (e.g., 2 times the regular wage). Confirm with local labor laws for specific cases.

Q3: Are there daily limits on overtime hours?
A: Yes, labor laws often specify maximum overtime hours per day or week to protect workers.

Q4: How is overtime calculated for monthly salaried employees?
A: Convert the monthly salary to an hourly rate based on standard working hours, then apply the overtime formula.

Q5: Does this calculator account for different overtime multipliers?
A: This calculator uses the standard 1.5 multiplier. For different rates, manual adjustment may be needed.