1. What is Overtime Pay Calculation?

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

2. How Does the Calculator Work?

The calculator uses the overtime pay formula:

Where:

• \( \text{Basic Wage} \) — Monthly basic salary in SAR
• \( \text{Standard Monthly Hours} \) — Standard working hours per month (typically 160 hours)
• \( \text{Overtime Hours} \) — Number of overtime hours worked
• 1.5 — Overtime multiplier as per KSA labor law

Explanation: The formula first calculates the hourly rate by dividing the basic wage by standard monthly hours, then multiplies by overtime hours and the 1.5 multiplier.

3. Importance of Overtime Calculation

Details: Accurate overtime calculation ensures compliance with KSA labor laws, proper employee compensation, and helps employers manage labor costs effectively.

4. Using the Calculator

Tips: Enter basic wage in SAR/month, standard monthly hours (typically 160), and overtime hours worked. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the standard overtime rate in KSA?
A: According to KSA labor law, overtime is typically paid at 1.5 times the regular hourly rate for hours worked beyond the standard working hours.

Q2: What are standard monthly working hours in KSA?
A: The standard is typically 160 hours per month (8 hours/day × 20 working days), but this may vary by company policy.

Q3: Are there different overtime rates for weekends or holidays?
A: Yes, KSA labor law may require higher rates (2x or more) for work on weekends or official holidays.

Q4: Is basic wage the same as total salary?
A: No, basic wage typically excludes allowances and benefits. Overtime is usually calculated based on basic wage.

Q5: How is overtime calculated for shift workers?
A: The same formula applies, but standard hours and rates may differ based on shift patterns and company policies.