How the Overtime calculates in UAE for employees

Last Updated on November 29, 2024

Every employee should understand how Overtime calculates in UAE? so that they can figure out whether their employer is paying them fairly for performing extra duties.

Overtime is an extra payment to the employees for working additional hours over the normal working hours.

It is the normal practice in many countries, employees work for 8 hours a day and 48hr a week.

If an employer requests that an employee work an additional hour beyond the standard 48 hours per week, this is considered overtime.

Every nation has a labor law, the purpose of it is to prevent the employee from being exploited by their respective employers.

The overtime law also comes into the labor law which is designed to prevent employers from forcing employees to work excessively long hours.

In this post, I want to discuss the employees’ rights and privileges granted by UAE Labour Law in terms of working hours and the provision of overtime.

I found many people who are working in the UAE majority of unskilled workers, don’t know how the company calculates their overtime and other compensations.

Not only the unskilled workers but also many professionals give their different views on overtime calculation in UAE.

Although the labor law has elaborated on how to calculate overtime in UAE many companies do not comply with it.

According to the labor law of the UAE. The company can not force you to perform overtime. If an organization wants you to go for overtime, your permission is required.

There are good and bad companies in the UAE, some good companies pay according to labor laws, but some bad companies pay less than labor law.

If you want to just do overtime calculations in UAE, don’t worry because we have the overtime calculator in UAE as follows;

UAE Overtime Calculator



The above UAE overtime calculator is designed in compliance with UAE labor law, ensuring accurate and reliable calculations. Simply input your overtime hours as required, and it automatically overtime calculates in UAE, providing you with precise results based on legal guidelines.

Using online calculators for overtime calculations might not be sufficient when dealing with an employer, especially if you suspect unfair payment. It’s important to have a clear understanding of your legal rights.

Let’s review the provisions of UAE labor law to understand how companies are required to calculate overtime for employees.

Your company may pay you, higher than regular hours of work, but you should be aware of this. Is it following the law or not?

Most jobs in the UAE require an additional hour of work from employees.  The overtime law states that only certain level employees are eligible for overtime, therefore, you must know whether you are eligible or not.

As per the labor law of the United Arab Emirates, the following positions are not applicable for overtime.

They may receive huge bonuses in terms of contributing to the company’s growth by working extra hours.

Overtime no applicable positions;

  1. Senior positions.
  2. Administrative supervisors.
  3. The crew of naval ships and marine employees.
What are the Official work hours in UAE?
  1. 8 hours a day or 48 hours a week unless an employee works in a trade, hotel, and security guard the working hours can be increased to 9 hours a day maximum.
  2. Traveling between work and accommodation and the 1-hour break is not included in overtime.
  3. 8 hours a day is reduced to 6 hours during Ramadan.
  4. If an employer wants an employee to work overtime, he should seek the employee’s consent. The employer cannot force you to work overtime.
  5. The extra overtime hours shall not exceed 2hrs per day meaning the maximum of 11 hrs.
  6. If the nature of a job requires overtime the employer should pay overtime to the employees, adding 25% to the normal working hours.
  7. If you work between 10 pm-4 am then the pay rate is plus 50% on the normal working hrs.

Overtime Calculates in UAE

1. Regular Overtime (Between 4:00 AM and 10:00 PM):

  • Calculation:

    • Determine the employee’s basic hourly wage.
    • Multiply the basic hourly wage by 1.25 (to account for the 25% increase).
    • Multiply the result by the number of overtime hours worked.
  • Formula: Overtime Pay=(Basic Hourly Wage×1.25)×Overtime Hours
  • Example:
    • Basic Monthly Salary: AED 3,200
    • Overtime Hours: 10
    • Basic Hourly Wage: (3200×12)/(365×8)=AED13.15
    • Overtime Hourly Rate: 13.15×1.25=AED16.44
    • Total Overtime Pay: 16.44×10=AED164.40

2. Night Overtime (Between 10:00 PM and 4:00 AM):

  • Calculation:
    • Determine the employee’s basic hourly wage.
    • Multiply the basic hourly wage by 1.50 (to account for the 50% increase).
    • Multiply the result by the number of overtime hours worked during this period.
  • Formula: Overtime Pay=(Basic Hourly Wage×1.50)×Overtime Hours
  • Example:
    • Using the same basic hourly wage of AED 13.15:
    • Overtime Hourly Rate: 13.15×1.50=AED19.72
    • Total Overtime Pay for 10 hours: 19.72×10=AED197.20

3. Overtime on  Rest Days:

  • Calculation:
    • If an employee works on a rest day without receiving a compensatory day off, the employer should pay 150% of their basic hourly wage for the hours worked.
  • Formula: Overtime Pay=(Basic Hourly Wage×1.50)×Overtime Hours
  • Example:
    • Basic Hourly Wage: AED 13.15
    • Overtime Hourly Rate: 13.15×1.50=AED19.72
    • Total Overtime Pay for 10 hours: 19.72×8=AED197.72

4. Overtime on Public Holidays 

    • If an employee works on a public holiday with a compensatory day off, the employer should pay 150% of their basic hourly wage for the hours worked.
  • Formula: Overtime Pay=(Basic Hourly Wage×1.50)×Overtime Hours
  • Example:
    • Basic Hourly Wage: AED 13.15
    • Overtime Hourly Rate: 13.15×1.50=AED19.72
    • Total Overtime Pay for 10 hours: 19.72×8=AED197.72 +1 day off
    • If the employer cannot provide a compensatory day off, they are required to pay an overtime hourly rate of: 13.15 × 2.50 = AED 32.87

Important Considerations:

  • Overtime calculations are based solely on the basic salary and do not include allowances or other benefits.
  • The maximum allowable overtime is two hours per day unless the nature of the work necessitates longer hours.
  • Employers must obtain the employee’s consent for overtime work and compensate accordingly.

For detailed information and specific scenarios, refer to the UAE Labour Law or consult with the Ministry of Human Resources and Emiratisation.

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1 COMMENT

  1. You are posting false information the overtime calculate in gross salary not in basic as per Mohre-UAE Labor law.

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