Quick Summary
- Most private sector employees in Saudi Arabia are eligible for overtime
- Senior managers with genuine hiring and firing authority are exempt
- Domestic workers have separate regulations — not covered by standard overtime
- Having a manager title does not automatically make you exempt
- Overtime rate: 150% on weekdays, 200% on rest days and holidays
- Contract clauses removing overtime rights are unenforceable
The General Rule — Most Workers Are Eligible
Saudi Labour Law provides overtime protection to the vast majority of private sector workers. The default position is that you are eligible for overtime pay unless you fall into one of the specifically exempt categories defined in the law.
Many expats are told by their employers that they are not eligible for overtime — sometimes incorrectly. Understanding the exact eligibility rules is important because unpaid overtime can represent a significant amount of money owed over months or years of service.
Who Is Eligible for Overtime?
- All standard private sector employees working beyond 8 hours per day
- Technical staff, engineers, IT professionals and specialists
- Administrative staff, coordinators and executives below senior management
- Sales staff, customer service teams and operations staff
- Supervisors and team leaders who do not have genuine hiring and firing power
- Workers on project-based assignments who exceed daily hour limits
- Part-time workers who exceed their agreed working hours
Who Is Exempt from Overtime?
| Category | Exempt? | Reason |
|---|---|---|
| Senior managers with hire/fire authority | Yes — exempt | Article 98 exemption for genuine management |
| Domestic workers (maids, drivers, cooks) | Yes — separate law | Governed by Domestic Workers Law not Labour Law |
| Agricultural workers | Partially exempt | Separate agricultural worker provisions |
| Sea and maritime workers | Separate rules | Maritime Labour Law applies |
| Managers with title but no real authority | Not exempt | Title alone does not create exemption |
| Staff with "all-inclusive salary" contracts | Disputed | Courts often still award overtime on top |
The Senior Manager Exemption — What It Actually Means
The most commonly misapplied exemption is the senior manager exemption. Under Article 98 of Saudi Labour Law, workers who occupy genuine senior management positions are exempt from overtime provisions.
However the exemption requires genuine authority — not just a job title. To qualify for the exemption the person must:
- Have actual authority to hire employees independently
- Have actual authority to fire employees independently
- Be at a level where their decisions affect the business significantly
- Be compensated at a level that reflects senior management status
If you have the title of "Manager" or even "Director" but you cannot hire or fire anyone without approval from above — you are likely not a senior manager in the legal sense and you should be eligible for overtime pay.
All-Inclusive Salary Contracts and Overtime
Some employment contracts include a clause saying the salary is "all-inclusive" or "includes overtime." This is a common employer tactic to avoid paying separate overtime. Here is the legal reality:
- An all-inclusive clause is only valid if the contracted salary is genuinely high enough to reasonably compensate for expected overtime at the legal rates
- Saudi Labour Courts have frequently ruled in favor of employees who claimed additional overtime even when contracts had all-inclusive clauses — if the amounts were clearly insufficient
- A clause that says "salary includes unlimited overtime" is generally considered unenforceable as it attempts to waive a statutory right
- If you have worked significant overtime and have documented hours, you can still file a claim at HRSD even with an all-inclusive contract clause
How to Calculate Overtime You Are Owed
Calculate Your Overtime Entitlement
Use our free Overtime Calculator to find out exactly how much overtime pay you are owed — based on your salary, hours worked and day type.
Open Overtime Calculator — FreeHow to Prove Overtime Hours Worked
The biggest challenge in overtime claims is proving the hours worked. Evidence that is useful:
- Access card logs — building entry and exit records are strong evidence of actual hours worked beyond the standard day
- Email timestamps — emails sent or received late at night or on weekends prove you were working outside normal hours
- Manager instructions in writing — WhatsApp or email from a manager asking you to stay late or work on a rest day
- Personal timesheet — keep your own record of overtime hours worked each day. Even a personal record carries weight when combined with other evidence
- Payslip analysis — if your payslips show zero overtime for months where you clearly worked extra hours this supports your claim
What If Your Employer Wrongly Claims You Are Exempt?
If your employer is claiming you are exempt from overtime but you do not believe you meet the genuine senior management criteria, here is what to do:
- Document your actual role and responsibilities clearly — what decisions you can make independently vs what requires approval
- Review your job description — does it actually grant independent hiring and firing authority?
- Consult a professional before filing — the distinction between eligible and exempt can be technical and a consultation helps assess your specific case
- File an HRSD complaint — present your evidence of hours worked and challenge the exemption claim. HRSD will assess the actual nature of your role
Frequently Asked Questions
I am called a "Director" but I have no hiring or firing power. Am I eligible for overtime?
Almost certainly yes. The overtime exemption requires genuine authority — not just a title. If your decisions require approval from above and you cannot independently hire or fire anyone, you are likely eligible for overtime. This is worth pursuing through HRSD with proper documentation.
My contract says "salary is all-inclusive covering all overtime." Is this valid?
It depends on the amount. If your salary is genuinely high enough to reasonably cover the overtime you worked at legal rates, courts may uphold it. If you worked hundreds of hours of overtime and the salary clearly could not cover it, courts frequently disregard these clauses and award overtime separately.
Can I claim overtime after I have already left Saudi Arabia?
Yes — within one year of your employment ending. File through the HRSD online system. You will need documentation of hours worked. For Labour Court proceedings you will need a Saudi-based legal representative to attend on your behalf.
Does overtime affect EOSB calculation?
No — EOSB is calculated on basic salary only. Overtime is not included in EOSB calculation. However unpaid overtime is a separate claim that can be filed alongside or after your EOSB claim. They are independent of each other.
Employer Claiming You Are Not Eligible for Overtime?
Many employers misapply the senior manager exemption to avoid paying overtime. Book a consultation to assess whether your employer's claim is legitimate and calculate exactly what you may be owed.