How it works
Overtime pay starts from your hourly wage. For monthly-paid staff, the usual method is to divide the monthly salary by the days in the month (often a standard 30) and then by the normal daily hours. Overtime is paid at that hourly rate plus a premium, commonly 50% (“time and a half”).
hourly wage = monthly salary ÷ days ÷ hours per day overtime pay = hourly wage × (1 + premium %) × overtime hoursWorked example. A basic salary of 6,000 a month, 30 days, 8 hours a day: daily wage = 6,000 ÷ 30 = 200; hourly wage = 200 ÷ 8 = 25. With a 50% premium the overtime rate is 25 × 1.5 = 37.50, so 10 overtime hours pay 375.
What the law says (examples)
- Saudi Arabia: Article 107 of the Labor Law requires paying each overtime hour at the hourly wage plus 50% of the basic wage. If your total pay includes allowances, the premium is calculated on the basic wage only, so enter the basic salary to apply the rule exactly.
- Other countries: rates, caps on overtime hours and night or holiday premiums differ by country and are revised from time to time. Enter the premium that applies to you from your contract or the official labour authority.
Common questions about the inputs
- 30 days or working days? Many employers and labour authorities use 30 days for monthly salaries; some use the actual working days (for example 22). Use the method in your contract.
- Allowances: housing and transport allowances may or may not be included, depending on the law and contract.
To total your hours first, use hours between two times. Writing the amount on a cheque? See number to words.