Saudi Labor Law Article 107

Legal sources checked: 4 November 2026.
By Lawyer Muhammad Aboud Al-Dosari — Saudi legal practice license no. 40462.

: Overtime Pay and Paid Leave

Saudi Labor Law Article 107 provides for overtime pay based on your actual hourly wage, plus an additional 50% of your basic hourly wage. When your basic salary and actual wage differ, multiplying your whole salary package by 1.5 can give the wrong result. Paid compensatory leave is an alternative only with your consent and subject to the applicable rules.

To check your payslip, start with three figures: your actual wage, your basic wage and the overtime hours you can substantiate. This guide explains the calculation in Saudi riyals (SAR), how paid time off should be recorded and how to organize a claim. If the dispute concerns allowances or disputed hours, our labor law and employment dispute services explain the legal support available.

Does your overtime calculation differ from your payslip? Before submitting a claim, discuss your overtime figures on WhatsApp or call us about your situation.

What does Saudi Labor Law Article 107 cover?

Article 107 addresses the payment of overtime, hours exceeding an establishment’s adopted weekly standard, and work performed during holidays. The Ministry of Human Resources and Social Development’s overtime guidance explains these rules and the option of paid compensatory leave with the worker’s consent.

The important distinction is between the two wage figures. The first part of the calculation uses the actual hourly wage. The additional 50% uses the basic hourly wage. This is why an overtime figure based solely on basic salary may be too low when qualifying allowances form part of the actual wage.

Keep entitlement and valuation separate. First establish which hours qualify and how many were worked. Then apply the correct rate. A correct formula does not, on its own, establish that the claimed hours were performed.

Which hours should you include?

Check the employment contract, work regulations and shift schedule before counting overtime. The general standard is eight actual working hours a day or 48 a week, depending on the adopted basis. Reduced hours apply to Muslims during Ramadan, and special arrangements may apply to particular jobs or shift patterns. The Ministry’s guidance on actual working hours provides the relevant starting points.

• Daily standard: identify actual work beyond the applicable daily limit, allowing for any rules specific to the job.
• Weekly standard: compare actual hours with the establishment’s adopted weekly standard; do not assume that every contract uses 48 hours.
• Holiday work: hours actually worked during holidays are treated as overtime. You do not have to exceed eight hours on an Eid holiday before those hours qualify.

Time spent at the workplace is not necessarily the same as time worked. A genuine rest or meal break must be distinguished from time spent carrying out duties. This article focuses on payment once the qualifying hours have been identified.

Calculate overtime under Saudi Labor Law Article 107

The Ministry’s English awareness guide for employers and workers demonstrates the difference between actual and basic wages. For a monthly-paid worker with an ordinary eight-hour working day, the calculation used in the examples below is:

“Actual wage” is a legal wage category, not simply every amount transferred to your bank account. A payment may reimburse expenses rather than form part of wages. Check the contract and payslip to identify the components that belong in each figure. These examples assume fixed monthly pay and an ordinary eight-hour day; do not apply the divisor automatically to piece-rate work or special working-time arrangements.

Example 1: your actual wage includes allowances

Assume your monthly basic wage is SAR 6,000, your actual wage is SAR 8,000 including qualifying allowances, and you have ten qualifying overtime hours. These are hypothetical figures, not an assessment of an individual claim.

Using basic hourly pay alone and multiplying it by 1.5 would produce SAR 375 for those ten hours: approximately SAR 83.33 less than this example’s result. Multiplying the whole actual hourly wage by 1.5 would produce SAR 500, which is too high for the same assumptions. Keep the intermediate figures precise and round the final amount to two decimal places.

Example 2: basic and actual wages are identical

If both monthly figures are SAR 6,000, the ordinary hourly wage is SAR 25 and the additional amount is SAR 12.50. The overtime rate is therefore SAR 37.50 an hour, making ten hours worth SAR 375. Here, multiplying the ordinary hourly wage by 1.5 works because both parts of the formula use the same wage base.

Example 3: eight hours worked during Eid

Using Example 1, eight actual hours worked during an Eid holiday produce an overtime payment of 45.8333 × 8, or approximately SAR 366.67. This is the overtime amount for the example, not the worker’s total monthly salary or a replacement for the underlying paid-holiday entitlement. Keep each payment category separate to avoid counting the same amount twice.

When can paid time off replace overtime pay?

Saudi Labor Law Article 107 allows paid compensatory leave with the worker’s consent. Article 22 bis of the Implementing Regulations (Arabic) sets out the conditions. An employer cannot simply replace the payment with an informal promise of a day off.

1. Consent and a clear agreement: the arrangement should identify the overtime assignment and the amount of compensatory leave.
2. Minimum credit: at least 1.5 hours of paid leave for each overtime hour. Ten overtime hours therefore require at least 15 hours of leave.
3. When leave is taken: within 60 days of performing the overtime, unless the parties agree otherwise.
4. Annual ceiling: compensatory leave must not exceed 30 days in a year.
5. Leaving employment: the worker is entitled to payment for accrued compensatory leave not used before leaving.

Check the agreement, credited hours and leave actually taken. In your calculation, distinguish overtime already paid, overtime validly compensated with leave, and hours still outstanding. A claim under Saudi Labor Law Article 107 should identify the remaining entitlement rather than ask for payment again for hours already settled.

Build a clear overtime claim file

A useful claim file connects each amount to a date, a wage figure and supporting evidence. The following checklist is a practical organizing tool, not a government form or a description of a client’s case.

Write to HR with a specific request: “Please review my overtime payment for [month], covering [number] hours. My calculation and supporting records are attached. Please confirm the payment made or any agreed compensatory leave credited and taken.” Retain the request and response. Silence alone is not an admission that your figures are correct.

Settlement, timing and the official service fee

The Ministry’s Friendly Settlement for Labor Disputes service is the first stage for the worker–employer disputes it covers and is provided free of charge. The Arabic service description sets a period of 21 working days from the first session for settlement or referral to the labor court. This is a settlement-stage timeframe, not a promised date for judgment or recovery of money.

If settlement fails, follow the instructions in the settlement record to pursue the claim before the competent labor court. Organize the facts and attachments around the period claimed, the qualifying hours, the wage figures and the outstanding amount.

Pay particular attention to the Article 234 time limit published by the Ministry: labor rights claims are generally inadmissible after 12 months from the end of the employment relationship, unless the court accepts an excuse or the defendant acknowledges the right. Do not assume that internal discussions alone protect your position against that time limit.

Common problems to resolve before filing

• An unsupported total: replace an estimated number with a dated breakdown.
• Rest breaks counted as work: separate genuine breaks and explain any duties performed during them.
• Previous payments overlooked: reconcile each month’s payroll before claiming the whole amount.
• Today’s salary used for an earlier period: apply the wage components due during the period claimed.
• Messages without context: preserve dates, instructions and the original conversation or record.

These are evidence and preparation issues, not automatic grounds for rejecting every claim. The competent authority assesses the particular facts and material submitted.

When is legal advice useful?

A calculation under Saudi Labor Law Article 107 needs closer review when wages vary, an allowance is disputed, several periods or shift patterns are involved, or an agreed leave arrangement was never implemented. Sometimes proving the hours is harder than calculating their value.

Our labor law and employment dispute services cover the review of employment contracts, wage records and disputes over entitlements. Employers can use the same review process to check instructions, payroll and leave records and identify any difference before agreeing a settlement.

Frequently asked questions about Saudi Labor Law Article 107

Check one payslip before you calculate the whole claim

Start with one month: establish the qualifying hours, identify actual and basic wages, calculate the amount and deduct what has already been settled. Saudi Labor Law Article 107 is most useful when those figures are supported by records. If a difference appears, review the remaining periods and request a documented reconciliation.

This article provides general information, not advice on a particular dispute. An individual assessment requires the relevant facts and documents.