Payroll and pay · Saudi Arabia

Actual wage

Also known as: الأجر الفعلي · gross wage · total wage

The short answer

Under the Saudi Labour Law the actual wage is the basic wage plus all allowances, commissions and other amounts due to the worker for their work, as Article 2 defines it. The end-of-service award is calculated on it and the overtime hourly wage comes from it, though Article 86 lets the parties agree to exclude commissions from the award.

Actual wage and the others

Wage What it includes Where it is used
Basic Fixed pay before allowances The 50% overtime premium
Actual Basic plus allowances and commissions End of service, overtime hourly wage
Contributory Basic plus housing GOSI

What it means for HR

Keep the basic wage and each allowance separately on every employee file, with effective dates, so each entitlement is calculated on the right wage.

Official sources

This is general information to help you understand the topic. It is not legal advice. Rules and rates change: always check the official text on the relevant authority’s platform and consult a qualified adviser before acting.

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