Mandatory overtime benefit for overtime work

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Riyadh – The Ministry of Human Resources and Social Development has stated that overtime benefits are mandatory for workers working overtime in Saudi Arabia. Overtime work is to be paid at the rate of 150 per cent of the base salary. With the consent of the worker, paid leave can be given in lieu of overtime benefits. Overtime benefit must be paid in cash if the employment contract is terminated for any reason before availing the leave overtime benefit. Jobs on official holidays and festive holidays are considered overtime work.
The Ministry of Manpower and Social Development has also recently announced a decision to encourage companies to raise the wages of expatriates working in the private sector.

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