How to Calculate Overtime Pay in UAE (2026 Labor Law Guide)
It can sometimes be difficult for a claimant to understand how Allah even takes out work requests. In this guide, we explain how to calculate overtime in UAE in simple terms. It is important to have some understanding of overtime so that you can get it according to the UAE labor laws.
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What Is Overtime Calculation in the UAE as per Labor Law?
Overtime means that an employee works extra hours after the scheduled time. According to UAE labor laws, this additional work must be done in order to protect the rights of employees. Calculate Overtime Pay in UAE All employers must follow these laws and pay them correctly.
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Standard UAE Working Hours as per Labour Law
Under Decree No. 33 of 2021, Article 17 defines standard working hours:
- Normal working hours: 8 hours per day or 48 hours per week.
- Extended working hours: In certain sectors such as trade, hotels, factories, or security, working hours can be up to nine hours a day.
How to Calculate Overtime in the UAE?
According to labor law, overtime is generally calculated in the UAE. Calculate Overtime Pay in UAE Overtime is an important part of the salary system. UAE payments are made to the employee based on the basic profile. The simple formula for calculating overtime is:
Basic Salary × 12 ÷ 365 ÷ 8 × Total Overtime Hours × 1.25 = Total Overtime Pay
Overtime worked between 10 pm and 4 am is paid at a higher rate, which includes a 50 percent increase in salary. This calculation can be done manually using a tool like Suit in Ajr Barbar, which ensures accurate payment, complies with the law, and saves time while also avoiding mistakes.
Read More: Leave Salary Calculator UAE 2026 – Calculate Your Paid Leave Salary in Seconds
What Are the Types of Overtime?
Overtime occurs when an employee works more than the stipulated working hours.Calculate Overtime Pay in UAE It is important to know what types of overtime are so that the correct salary can be paid and the laws are followed. It is generally divided into two major types:
- Force Majeure Overtime: Is it a red flag that this happens when a situation or sudden event occurs and immediate action is needed to resolve the problem or avoid damage?
- Structural Overtime: This applies to additional work that arises due to normal business needs, such as busy times or unexpected tasks.
Most employers have laws that specify how many extra hours an employee can work in a week or apply to regular overtime, but short overtime is usually not a limit because it is done in a necessary situation.Calculate Overtime Pay in UAE Companies can use tools to easily and accurately manage both types of overtime.
What Is the Formula for Overtime Calculation in UAE?
Overtime is calculated correctly in accordance with Articles 60 to 72 of the Labor Laws.Calculate Overtime Pay in UAE To calculate overtime in the UAE, it is important to keep a few important things in mind.
- Employee’s Basic Salary
- Number of Overtime Hours
- Overtime Type (Normal, Fridays, or Public Holidays)
After keeping these things in mind, the next steps are to use Durood and Mala according to the situation.Calculate Overtime Pay in UAE This process can be done using the Manazil tool to make Adhan, which can be done overtime faster, more accurately and easily.
Calculate Your Pay for Work on a Rest Day
If an employee takes their leave, they receive a percentage of their salary. This payment depends on whether the work was done on a fixed wage basis or on the number of hours the employee worked. Tools to use to track hours accurately, automatic calculators to comply with labor laws in the UAE.
Rest Day Pay:
| Work Situation | Employer’s Request | Employee’s Request |
|---|---|---|
| For up to half your normal hours | 1 day’s salary | Half a day’s salary |
| For more than half / beyond normal hours | 2 days’ salary + overtime pay | 1 day’s salary + overtime pay |
Overtime Calculation in UAE on a Normal Working Day
Employees who work beyond their normal working hours are paid child support and time pay in addition to their normal pay. This is the basis for calculating overtime for both normal work hours in the UAE.
Read More: How to Calculate Leave Salary in UAE (Step-by-Step Guide)
Overtime Calculation in UAE Formula
| Calculation Type | Formula / Details | Example |
|---|---|---|
| Daily Wage | Basic Salary × 12 ÷ 365 | If an employee earns 3,200 AED: (3,200 × 12) ÷ 365 = AED 105.20 |
| Hourly Rate | Daily Wage ÷ 8 | 105.20 ÷ 8 = AED 13.15 |
| Overtime Pay (Normal) | Hourly Rate × 1.25 × Overtime Hours | Overtime Hours = 100 → 13.15 × 1.25 × 100 = AED 1,643 |
| Total Monthly Salary (Normal) | Basic Salary + Overtime Pay | 3,200 + 1,643 = AED 4,843 |
| Night Overtime | Work done between 10:00 PM – 4:00 AM paid at 50% higher rate (except shift-based employees) | Hourly Rate = Daily Wage ÷ 8 = 105 ÷ 8 = AED 13.12 Overtime Rate per Hour = 13.12 × 1.5 = AED 19.68 Total Overtime Pay = 100 × 19.68 = AED 1,968 Total Monthly Salary = 3,200 + 1,968 = AED 5,168 |
Overtime Calculation in UAE on a Public Holiday
Employees who work on public transport are entitled to personal pay or paid leave, as stated in Article 81 of the UAE Labor Law. If the employer is paid one day off, they can be given a bonus of 50 percent of their daily salary. If the leave is not given, they will have to pay 150 percent of their normal salary.
| Topic | Formula / Details | Example |
|---|---|---|
| Overtime Pay Formula | Total Overtime Pay = (Basic Salary × 12 ÷ 365 ÷ 8) × Total Overtime Hours × 1.5 + 1 day of alternative leave | — |
| Example – Public Holiday | Employee with monthly salary 3,200 AED working 8 hours on a public holiday | Overtime Pay = 3,200 × 12 ÷ 365 ÷ 8 × 8 × 1.5 = AED 157 (plus 1 day off) |
| Example – If leave not given (150% pay) | If compensatory leave is not given | Overtime Pay = 3,200 × 12 ÷ 365 ÷ 8 × 8 × 2.5 = AED 263 |
Essential Overtime Calculation in UAE Rules as per Local Labour Law
Just like official working hours, overtime in the UAE is subject to specific laws that must be followed to ensure fair compensation. Here are some important points to note:
- It can mean pay and time, but it should not exceed two hours per day.
- Overtime pay for work done outside of normal hours is 25% plus the basic wage, and it increases to 50% for work done between 10pm and 4am. This does not apply to employees working on a shift basis.
- If an employee works for his own leisure, he should be given an alternative day off. This daily wage should be paid at an additional 50 percent.
- Employees who work five or more consecutive hours must be given a one-hour break between work hours, which is not included in overtime.
- Working hours are eight hours a day, but during Ramadan, this is reduced to six hours.
- Employees should not work more than two consecutive weekend days, except for those working during the day.
- There are some commitments that senior and management supervisors may have machinery from overtime laws as well as unions or parenting that may be specific to employees with nighttime duties and employees in the marine industry.
Read More: UAE Overtime Calculator – Estimate Your Overtime Pay Easily
Conclusion
Calculate Overtime Pay in UAEI help businesses set up overtime schedules correctly so that employees get the full benefit of the extra hours.Calculate Overtime Pay in UAE Plants like UAE help to easily track overtime, calculate it accurately, and manage overtime effectively. This helps to easily manage normal working hours during night shifts, weekends, and public holidays, saving time and streamlining the payroll system for any business.
FAQ’s
What is overtime and how do I calculate overtime pay in UAE?
Overtime occurs when an employee works beyond their regular working hours. To calculate overtime pay in UAE, you need to consider the employee’s basic salary, overtime hours, and applicable rates under UAE Labor Law.
How is overtime pay calculated for night shifts in UAE?
To calculate overtime pay in UAE for night shifts (10 PM to 4 AM), the normal rate increases by 50%, unless the employee is on a shift schedule.
Can overtime pay in UAE be claimed for public holidays?
Yes. Employees working on public holidays are entitled to extra pay or compensatory leave. You can calculate overtime pay in UAE based on 150% of the daily wage if no compensatory leave is provided.
Does the employee or employer request affect overtime pay calculation in UAE?
Yes. Whether overtime is requested by the employer or employee, it affects the total pay and leave entitlements. You still need to calculate overtime pay in UAE according to labor law rules.
What tools can help calculate overtime pay in UAE accurately?
Platforms like Pasimo help employers calculate overtime pay in UAE automatically, track hours, include night shifts, weekends, and public holidays, ensuring compliance and accurate payroll.