According to the MOL Article ( 107 ):
1- The employer shall pay the worker for overtime working hours an additional amount equal to the hourly wage plus 50% of his basic wage.
2- If the firm is operated on the basis of weekly working hours, the hours in excess of the hours taken as the criterion shall be deemed overtime hours.
3- All working hours performed during holidays and Eids shall be deemed overtime hours.
What are the actual working hours according to the MOL system?
Article ( 98 ) has mentioned that: A worker may not actually work for more than eight hours a day if the employer uses the daily work criterion, or more than forty-eight hours a week if he uses the weekly criterion. During the month of Ramadan, the actual working hours for Muslims shall be reduced to a maximum of six hours a day or thirty-six hours a week.
So, Based on the above, the equation for calculating the additional wage becomes as follows:
Number of overtime working hours * ( Full Package Hourly wage rate + ( Basic Hourly wage rate * 50 % ) )
Example :
An employee with a Basic Salary = 2400 S.R
And his Full Package ( Actual Include all allowances ) = 3600 S.R
with the assumption of an Org. has Total daily working hours = 8 Hrs / Day
and the employee has worked for 5 Hrs as extra time in a specific month
>> The calculations become as follows:
|
Basic Salary : |
2400 S.R / Month |
|
Full Package ( Actual Include all allowances ) : |
3600 S.R / Month |
|
Basic Hourly wage rate : |
10 S.R / Hour ( 2400 / 30 / 8 ) |
|
Full Package Hourly wage rate : |
15 S.R / Hour ( 3600 / 30 / 8 ) |
|
Number of overtime working hours in this example |
5 Hours |
|
Applying the equation |
5 * ( 15 + ( 10 * 50 % ) ) |
|
Due Overtime amount |
100 S.R |
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