How to calculate overtime pay in Payroll System in Saudi Arabia?

Ojoor # 1 is one of the top Payroll System in Saudi Arabia Overtime pay is an additional wage paid to employees who work beyond the normal hours set in the employee’s contract. It is important to make sure that your organization’s payroll system is able to accurately calculate overtime pay. 

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Ojoor #1 Payroll System in Saudi Arabia

How to calculate overtime pay in Payroll System in Saudi Arabia?
How to calculate overtime pay in Payroll System in Saudi Arabia?

What Is Overtime Pay?

Payroll System in Saudi Arabia Overtime pay is a wage paid to employees who work more than their normal working hours. It is usually calculated at 1.5 times the employee’s normal rate of pay for each extra hour worked. For example, if a worker is paid $10 per hour normally, they would be paid $15 per hour for each extra hour they worked over their contracted hours. However, some countries may have different overtime laws which may require a different rate of overtime pay. 

Identifying Overtime Hours

It is important to accurately identify the number of overtime hours worked by employees in order to calculate the correct overtime pay. This can be done by keeping track of the hours worked by each employee and comparing this to the normal hours set in their contract. It is also important to account for any breaks taken, as these will not be included in the overtime calculation. 

Calculating Overtime Pay

Once the overtime hours have been identified, the overtime pay can then be calculated. This is done by multiplying the overtime hours worked by the employee’s normal rate of pay and then multiplying this by 1.5. For example, Payroll System in Saudi Arabia if an employee has worked an extra 10 hours and their normal rate of pay is $10 per hour, the overtime pay would be calculated as follows: 10 x $10 x 1.5 = $150.

Setting Up the Payroll System

Payroll System in Saudi Arabia In order to ensure that the payroll system is accurately calculating overtime pay, it is important to set up the system correctly. This can be done by entering the details of each employee’s normal rate of pay and their contracted hours, as well as any applicable overtime rate. It is also important to ensure that the system is set up to correctly identify any overtime hours worked and to correctly calculate the overtime pay based on the rate of pay.