What does Article 107, which the calculator relies on, state?
It states that the employer pays the worker overtime pay for extra hours equal to the hourly wage (actual, including allowances) plus 50% of their basic wage (without allowances). Practically, this means the employee gets more than 150% of their normal hourly wage, since the extra addition is calculated from the basic wage, which is usually lower than the actual one.
What's the difference between "basic wage" and "actual wage"?
The basic wage is just the basic salary as it appears in the employment contract, without any allowances. The actual wage is the total the employee receives monthly, including all fixed allowances (housing, transport, etc.). Article 107 uses the actual wage to calculate the base hourly wage for overtime, and the basic wage only to calculate the extra 50%.
Why divide by 30 days always, not the actual number of days in the month?
This is the standard adopted in official examples and common practical application for calculating the daily/hourly wage (simplifying the calculation), regardless of whether the month has 28, 30, or 31 days.
Is work on official holidays calculated the same way?
Yes, using the same overtime hourly wage formula, but Article 107 (paragraph 3) states that all hours worked on holidays and Eids are treated entirely as overtime, even if within the usual working hours (8 hours, for example) — meaning the entire day is paid as overtime.
Can overtime hours be compensated with leave instead of cash pay?
Yes, with the worker's consent, the employer may grant paid compensatory leave days instead of the cash pay owed for the overtime hours, but this option requires a documented agreement between both parties, and the default legal entitlement is cash pay.
