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UAE Overtime Calculator

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Calculate overtime pay according to UAE Labor Law

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UAE Labor Law Guidelines

• Regular overtime: 25% extra pay (1.25x hourly rate)
• Night/Weekend/Holiday overtime: 50% extra pay (1.5x hourly rate)
• Maximum 2 overtime hours per day
• Standard working week: 48 hours (8 hours/day, 6 days)
• Ramadan: 36 hours per week maximum

Overtime Calculation in the UAE: A Complete Guide for 2024

Navigating overtime pay in the UAE can be complex. With different rules under the UAE Labour Law (Federal Decree-Law No. 33 of 2021) for standard hours, night shifts, and rest days, it is crucial for both employers and employees to understand their rights and obligations.

This comprehensive guide breaks down the overtime calculation formulas, provides clear examples, and answers the most frequently asked questions.

Understanding Standard Working Hours

According to UAE law, the standard maximum working hours for the private sector are 8 hours per day or 48 hours per week. Hours worked beyond this limit are considered overtime and must be compensated accordingly.

Please note that for certain industries like hospitality and retail, working hours can be extended, but the average over the entire period must not exceed 48 hours per week.

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Overtime Calculation Formulas and Examples

The compensation for overtime is calculated based on your basic salary. The formulas differ depending on when the overtime is performed.

1. Overtime During Normal Working Days

If you work beyond your 8 hours on a regular day (Sunday to Thursday), the following formula applies.

Formula:
Overtime Pay per Hour = (Basic Salary × 12 / 365) / 8 × 1.25

Explanation:

(Basic Salary × 12 / 365) gives your daily basic wage.
/ 8 converts the daily wage into an hourly wage.
× 1.25 is the overtime multiplier (your normal rate plus 25%).

Example:
Ahmed has a basic salary of AED 5,000 per month. He worked 2 extra hours on Tuesday.

Daily Wage = (5,000 × 12) / 365 = AED 164.38
Hourly Wage = 164.38 / 8 = AED 20.55
Overtime Hourly Rate = 20.55 × 1.25 = AED 25.69
Payment for 2 hours = 25.69 × 2 = AED 51.38

2. Overtime During Weekends (If Applicable)

If your official working days include a Friday or Saturday and you are required to work overtime on those days, the compensation is higher.

Formula:
Overtime Pay per Hour = (Basic Salary × 12 / 365) / 8 × 1.5

Explanation:
The multiplier for weekend overtime is 150% of your normal hourly rate.

Example:
Fatima has a basic salary of AED 6,000. She worked 3 overtime hours on her official working day, which is a Friday.

Daily Wage = (6,000 × 12) / 365 = AED 197.26
Hourly Wage = 197.26 / 8 = AED 24.66
Overtime Hourly Rate = 24.66 × 1.5 = AED 36.99
Payment for 3 hours = 36.99 × 3 = AED 110.97

3. Overtime on Official Public Holidays

Working on an official public holiday (e.g., Eid Al Fitr, National Day) entitles you to the highest rate of compensation.

Formula:
Overtime Pay per Hour = (Basic Salary × 12 / 365) / 8 × 2.5

Explanation:
You must be paid your normal day’s wage for the holiday plus compensation for the hours worked at a rate of 150% of your basic wage, or you must be granted a compensatory day off. The total effective rate is 250% of your normal hourly rate.

Example:
Khalid has a basic salary of AED 4,500. He worked 4 hours on the first day of Eid Al Adha.

Daily Wage = (4,500 × 12) / 365 = AED 147.95
Hourly Wage = 147.95 / 8 = AED 18.49
Overtime Hourly Rate = 18.49 × 2.5 = AED 46.23
Payment for 4 hours = 46.23 × 4 = AED 184.92

4. Night Overtime (10:00 PM to 4:00 AM)

Overtime work performed between 10:00 PM and 4:00 AM qualifies for an additional bonus.

Formula:
Overtime Pay per Hour = [(Basic Salary × 12 / 365) / 8 × 1.25] + (Normal Hourly Rate × 0.5)

Explanation:
You receive the standard overtime rate (125%) plus an additional 50% of your normal hourly rate.

Example:
Using Ahmed’s salary of AED 5,000 (Hourly Rate: AED 20.55) for 2 hours of night overtime:

Standard Overtime Rate = 20.55 × 1.25 = AED 25.69
Night Bonus = 20.55 × 0.5 = AED 10.28
Total Night Overtime Rate = 25.69 + 10.28 = AED 35.97
Payment for 2 hours = 35.97 × 2 = AED 71.94

Frequently Asked Questions (FAQs)

Is overtime pay calculated on basic salary or gross salary?
Overtime pay in the UAE is calculated exclusively on the employee’s basic salary. Allowances for housing, transport, etc., are not included in the calculation.

Can my employer force me to work overtime?
An employer can request overtime, but the employee cannot be forced to work more than the legal limit of 48 hours per week. Any overtime work must be compensated as per the law.

Can I take compensatory time off instead of overtime pay?
Yes, with the mutual agreement of the employer and employee, compensatory time off can be granted in lieu of overtime pay. This must be documented.

Are all employees eligible for overtime?
No, certain categories of employees are exempt from overtime provisions as per Ministerial Resolution No. 1 of 2022. This typically includes individuals in senior management or supervisory roles (e.g., CEOs, HR Managers, Head of Finance) whose work is inherently not bound by standard working hours.

What if my normal shift is at night?
The “night overtime” bonus specifically applies to hours worked between 10:00 PM and 4:00 AM that are considered overtime. If your regular shift falls within these hours, your regular wage applies unless you work beyond your contracted hours.

What should I do if my employer refuses to pay overtime?
First, try to resolve the issue internally with your HR department. If this fails, you can file a complaint with the Ministry of Human Resources and Emiratisation (MOHRE) through their app or by calling 600 665 555.

Key Takeaways

Overtime is calculated on your basic salary, not your gross salary.
The standard overtime rate is 125% of your normal hourly rate.
Weekend and holiday overtime rates are significantly higher (150% and 250% effective rate, respectively).
Night work (10 PM – 4 AM) as overtime includes an additional 50% bonus.
Know your rights and always ensure your overtime work is officially recorded and approved.

This guide is for informational purposes and reflects the provisions of the UAE Labour Law. For specific and personal legal advice, it is always recommended to consult directly with MOHRE or a legal professional.

Overtime Calculation in UAE