1. What is Overtime Pay Calculation?

Overtime pay calculation determines the additional compensation employees receive for working beyond their regular hours. In KSA and Malaysia, overtime is typically paid at 1.5 times the regular hourly wage.

2. How Does the Calculator Work?

The calculator uses the overtime pay formula:

Where:

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

Explanation: The equation calculates the total overtime compensation by multiplying the enhanced hourly rate (1.5x regular wage) by the number of overtime hours worked.

3. Importance of Overtime Calculation

Details: Accurate overtime calculation ensures compliance with labor laws in KSA and Malaysia, prevents wage disputes, and maintains fair compensation practices for employees working beyond regular hours.

4. Using the Calculator

Tips: Enter hourly wage in local currency (e.g., SAR, MYR) and overtime hours in decimal format. All values must be valid (wage > 0, hours > 0).

5. Frequently Asked Questions (FAQ)

Q1: Is the 1.5x multiplier standard in both KSA and Malaysia?
A: Yes, both countries typically require 1.5 times the regular hourly rate for overtime work, though specific regulations may vary by employment contract.

Q2: Are there different overtime rates for weekends/holidays?
A: Yes, both KSA and Malaysia may have higher rates (e.g., 2x or 3x) for work on weekends and public holidays. Check local labor laws for specifics.

Q3: How should overtime hours be recorded?
A: Employers should maintain accurate timesheets showing regular and overtime hours worked, signed by both employee and supervisor.

Q4: Are there maximum overtime limits?
A: Both countries have regulations limiting maximum overtime hours per day/week to protect worker health and safety.

Q5: Does this calculation apply to all employees?
A: Some categories of employees (e.g., managers, specific professions) may be exempt from overtime provisions. Consult local labor regulations.