COMPUTATION OF WAGES, ANNUAL LEAVE,

COMPENSATION,OVERTIME, PUBLIC HOLIDAY

1. WAGES (REGULATION 24 (1) OF S.I. 34 OF 1991)

1.1. HOURLY RATE

Annual Salary ÷ 52 weeks ÷ hrs work per week

Example:

A worker earnsSR 3856.67 per month.

3856.67 x 12 ÷ 52 ÷ 40 = SR 22.25

His hourly rate is 22.25 rupees per hour.

1.2. SALARY FOR DAYS WORKED

Number of days worked x number of hours worked per day x hourly rate
Example:

A worker has worked 5 days,works 8 hours per day and earns SR 22.25 per hour (national minimum wage since 1st July 2013).

5 x 8 x 22.25 = SR 890

His salary for 5 days is SR 890.

2. ANNUAL LEAVE (REGULATION 9 OF S.I. 34 OF 1991 AS AMENDED BY S.I. 3 OF 2000 AND

S.I. 9 OF 2006)

Example:

A worker whose monthly salary is SR 3856.67 has accumulated leave for one year.

He is entitled to SR 2662.69.

3. COMPENSATION(REGULATION 24(2) OF S.I. 34 OF 1991 READ WITH SECTION 47(2)(b)(i) OF

THE EMPLOYMENT ACT AS AMENDED BY ACT 18 OF 2010)

“the rate of five-sixths of one day’s wage for each completed month of service in the case of contracts of
continuous employment”

Example: SR 3856.67 x 12 x8 x 60days ÷52÷40 hours

Note: when a person works 8 hrs from Monday to Friday 4 or 5 hrs on Saturday, the daily hours are calculated on an average.

Example: 44hrs ÷ 6days or 45 hrs ÷ 6 days = working/hours per day

4. OVERTIME(REGULATION 6 OF S.I. 34 OF 1991)

Hours worked x 1.5 or 2 or 3 (as the case may be) x hourly rate

5. PUBLIC HOLIDAY(REGULATION 5 OF S.I. 34 OF 1991)

Example

A worker works on 2 Public Holidays, works 8 hours per day and earns SR 22.25 per hour (national minimum wage since 1 st July 2013).

He is entitled to SR 712.

6. COMPUTATION FOR PROPORTIONATE ANNUAL LEAVE(REGULATION 9 OF S.I. 34 OF

1991 AS AMENDED BY S.I. 3 OF 2000 AND S.I. 9 OF 2006)

Formula for computing annual leave entitlement on part time basis is as follows:

Example:

A worker work 23 hours per week in a business where it is customary to work 40 hours per week.

He is entitled to the number of days a full time worker in the same occupation would have multiplied by 0.58 approximately.

7. COMPUTATION FOR PROPORTIONATE COMPENSATION(REGULATION 24(3) OF S.I. 34 OF

1991 READ WITH SECTION 47(2)(b)(i) OF THE EMPLOYMENT ACT AS AMENDED BY ACT 18
OF 2010)

“Compensation payable to a part time worker shall be the amount which a full time worker in the same occupation would have received under these
Regulations reduced in the proportion that the number of hours which the full-time worker would have worked bears to the number of
hours which the part-time worker had worked.”

Formula for payment of compensation on part time basis is as follows:

Example:

A part-time worker who works 3 hours per day, 5 days a week (15 hours per week), when a full time worker in the same occupation whose salary per
month is SR 934.40 would have worked 7 hours per day, 5 days a week (35 hours per week), has completed 240 months of service.

He is entitled to 3696.53 rupees.