Overtime calculation on weekdays and holidays

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Can you please give us the various calculations for overtime in different situations?. 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 calculate the overtime for working on the weekly off days and official holidays.

Name withheld
Answer: To work out the overtime correctly, 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. But, before, we go on we must make it clear that for this purpose a month is considered to have 26 working days even for those companies which work 5 days a week.

This is because the working hours of the 6th day are spread over the five days. So, your contract was right on the calculation of the overtime on regular days and weekends although it makes 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.

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