What are the standard working hours in Saudi Arabia?

In Saudi Arabia, the standard working hours are as follows:

• When using the daily work criterion, a worker may not work more than 9 hours per day.
• When using the weekly work criterion, a worker may not work more than 45 hours per week.
• During the month of Ramadan, for Muslims, the working hours are reduced to a maximum of 7 hours per day or 35 hours per week.

Is overtime governed by law in Saudi Arabia? If so, what are the specifics outlined by law?

Employees in Saudi Arabia are entitled to overtime pay if they work more than 40 hours per week or on mandatory paid holidays. The rules governing overtime are as follows:

• Total Working Time: The total working time is limited to 10 hours per day and 60 hours per week. Overtime accrual is limited to 720 hours annually unless the Ministry of Labor and Social Development grants approval.
• Exceptions to Working Time Restrictions: Article 106 of the Labor Law allows exceptions to the working time restrictions for specific circumstances, such as:

- Preparing inventory, budget, liquidation, account closure, product discounts, or seasonal sales, provided the employer does not require more than 30 days of this type of work annually.

- Preventing or resolving a hazard, accident, or potential loss of perishable supplies.

- Resolving unusual work pressure.

- During Eids or other seasons and occasions approved by the Minister of Labor.

• Exemptions from Working Hours and Rest Period Restrictions: The working hours and rest period restrictions do not apply to:

- Persons with significant authority over other employees in matters of company management or policy.

- Preparation or supplementary work performed before or after a specific project or working period.

- Work that is intermittent by nature.

- Janitors and guards, apart from civil security guards.

How is overtime payment calculated in Saudi Arabia?

In Saudi Arabia, overtime payment is typically calculated at 1.5 times the normal hourly wages. However, starting on February 19, 2025, amendments to Saudi Arabia's Labor Law provide an additional option for overtime compensation. Employers and employees can agree that the employee receives paid time off instead of monetary compensation for overtime hours worked. Additionally, any work performed during scheduled time off is considered overtime.

How many days before the actual start date should the employment agreement be signed for payroll purposes in Saudi Arabia?

In Saudi Arabia, the employment agreement should be signed before the payroll deadline of the month in which the supported employee is scheduled to commence work. This ensures that all necessary payroll processes are conducted in a timely manner.