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Overtime calculation

I would like to inquire about the proper calculation for overtime pay. I am working in a private sector in a casual restaurant in Kuwait and have just been in the country for almost 7months.

Our company pays us the overtime, every month, 25% of our basic salary per month which is KD 150.The overtime amounts to KD 37.5and it is the only overtime that we receive.

But our contract says we are entitled to overtime at the rate 1.25 times the basic salary as overtime on week days and 1.50 times if the overtime is on holidays. I would like to know if we are following the Kuwait Labor Law and how much we should receive if our overtime hours are as follows per month:

December total overtime hours 64.5 = paid us KD 37.2 ...

January 139 total overtime hours ...

February 112 total overtime hours = paid us KD 37.5...

March 72 total overtime hours but the company has now said they will not pay anymore overtime due to sales going down.

Name withheld
In this connection, one must have a look at Articles 66, 67 and 68 of the Kuwait Labor Law. The section of Article 66 which speaks on overtime clearly says that the worker is entitled to a 25 percent increase over his original remuneration for the period of overtime.

This means 1.25 times the remuneration of the normal working period. Article 67 talks about working on weekends. It clearly says the worker shall be entitled to at least 50 per cent of his remuneration, in addition to his original remuneration and to another day off instead of the one on which he worked.

This means the worker not only gets 1.5 times the normal remuneration but also another day off and if you are not given that day off, then payment must be made also for that day. Article 68 says that if a worker is required to work on an official holiday, he shall be entitled to double remuneration and an additional day off. It is also very important to mention that the law uses the word the “remuneration” for the calculation of the overtime and not basic salary. “Remuneration” means the basic salary plus all the other allowances that a worker receives regularly.

The Kuwait Labor Law, second para of Article 67, also makes it very clear that overtime is calculated by dividing the worker’s remuneration by the actual working days without including the weekends, although these weekends are paid.

So, your contract was right on the calculation of the overtime on regular days and weekends although it made no mention of work on official holidays. But that doesn’t matter because a worker can’t be given less than what is mentioned in the Kuwait Labor Law. We can’t give you an exact figure for the overtime because we don’t know whether the above figures you mentioned are only for normal working days or whether these include working on weekends and official holidays.

As we have mentioned above, the calculation of each of these is different. We, however, will try to give you a calculation according to which you can work out all the other overtimes. Suppose the KD 150 mentioned above is your total remuneration and you don’t receive any allowances. And we take the month of December when you worked 64.5 extra hours.

First we divide KD 150 by 26 (working days in a month) = KD 5.77.

But you should get 1.25 times of the above as overtime = KD 5.77 x 1.25 = KD 7.2 for each day of extra work. Your overtime of 64.5 hours = just over 8 days So your overtime should be = KD 7.2 x 8 (you can work out the extra fraction) = KD 57.600 So KD 57.600 is the minimum you should receive for working overtime in December.

The figure is more if it includes weekends and official holidays. So, you can see that all of the company calculations are wrong. You should ask for the overtime to be correctly calculated and you can approach the Labor Office in your area if your rights are not given to you. Please also remember that the company can’t make you work overtime without paying you for the work, regardless of the sales situation.

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