OFWs in KSA, Learn This: How to Compute for OT Pay
Audrey, Oct 30, 2014
Many overseas Filipino workers or OFWs in Saudi Arabia complains they don’t receive overtime pay from their company. Most OFWs do not know if they are entitled for an OT pay and how to compute for it.
The Saudi Labor Law protects every employee’s working hours and overtime. Some contracts do not recognize these, and there are many violations on the workers side on their working hours and overtime pay. That is why it is important that OFWs read their contracts carefully and be sure that the company is to comply with the rules on OT pay.
According to article 98 of Saudi Labor law, 48 working hours is allowed per week. If an employer asks his employee to work beyond that, then they are to be paid for the overtime. The overtime rate that the employer shall pay will be 150% of the normal wage rate. In case the employer asks OFWs to work on holidays, national holidays or Muslim celebrations like Eid or Hajj, they are also entitled for the overtime pay.
How OFWs should compute for their OT pay
For example, a OFWs basic salary is SR 3000 for a month and he has worked for 100 extra hours in one month. The calculation of overtime pay will be:
Monthly salary / 30 days = per day wages
SR 3000 / 30 = 100
Per day wages / working hours = wages per hour
100 / 8 hours = 12.50
Wages per hour x overtime rate = overtime per hour
12.50 x 1.5 = 18.75
Overtime per hour x total overtime hours = Total overtime pay
18.75 x 100 = SR 1, 875
The OFWs total overtime pay of SR 1, 875 should then be given to him because he is entitled to this as payment for his overtime work to his employer. If any employer refused to comply with the Saudi labor law, given the exemptions and provisions, the OFW may file a complaint against the employer.
The following type of work is where OT pay is not applicable:
· OFWs occupying high position in management whose position gives him authority over workers.
· Preparatory or supplemental works which must be completed before or after the commencement of work.
· Work that is irregular by necessity.
· Guards and janitors, excluding civil Security Guards.
The following occupations will not be covered by the pay or shall be exempted from the implementation of the provisions of the Saudi Labor Law (Article 7.)
· Domestic helpers and the like.
· Sea workers working on board of vessels with a load of less than five hundred tons.
· Agricultural workers other than the categories stated in article 5 of Saudi labor law.
· Non-Saudi workers entering the Kingdom to perform a specific task for a period not exceeding two months.
· Players and coaches of sports clubs and federations.
The Saudi Ministry shall, in coordination with the competent authorities, draft regulations for domestic helpers and the like to govern their relations with their employers and specify the rights and duties of each party and submit the same to the Council of Ministers.
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