UAE Overtime Calculation Formula with Example

Working overtime in the UAE is a personal matter. Employees in organizations often work long hours, sometimes to complete a task, sometimes to make better use of their free time.

Whatever the reason, it is important for companies to be honest and respectful observers of the hard work of their employees. For this purpose, the Messenger of Allah is present. UAE Overtime Calculation He is the one who ensures that the correct payment of overtime is met and the company also operates according to the law.

After that, calculating overtime can be difficult for some people, especially when they do not have the correct legal knowledge. UAE Overtime Calculation In this blog, we will explain in a simple way how UAE overtime is calculated and how it is kept in accordance with this labor law.

What Is Overtime Pay?

Overtime pay is the amount of money that is paid to an employee for working more than their regular duty hours. UAE Overtime Calculation For example, if a person works in a company in Dubai, his working hours are from 9 am to 5 pm from Monday to Friday, but if, due to some urgent work or delivery, he has to work two more hours on Thursday and he works until 7 pm, then it is called overtime. UAE Overtime Calculation According to the UAE labor law, these two extra hours are paid at a higher rate than the normal salary.

Click Here: Leave Salary Calculator UAE

What Are the Overtime Pay Calculation Rules in the UAE?

• Here are some of the main reasons for awarding overtime according to UAE labor law:
• The company can require its employees to work overtime, but the additional work should not exceed two hours per day.
• If an employee works overtime on a normal day, they receive 125 points, which is 25 percent more than the basic request.
• If overtime is between 10 am and 4 am on a holiday, the employee gets 150 percent of their salary.
• If someone works on mandatory days off, the company must either provide them with compensatory leave or pay them 150% of their salary.
• If an employee works more than five hours of overtime, the company must provide at least one hour of overtime or the pay and time will not be included in the calculation.
• If an employee works more than five hours of overtime, the company must provide at least one hour of overtime or the pay and time will not be included in the calculation.
• Commuting time or lunch breaks are not included in the time.
• Apart from ordinary workers, employees other than them cannot be made to work two or three consecutive overtime hours.
• And other time rules do not apply to part-time, more administrative-level state employees; similarly, overtime is not paid to managerial-level employees.
• Where agricultural or offshore workers are not paid overtime
• What Are the Different Overtime Pay Calculation Methods in the UAE?
• Overtime pay is based on whether the employee worked the extra work on a regular workday or a public holiday, so now we can easily understand both sides.

Method for Calculating Overtime Pay on a Regular Working Day

Per Day Salary = Basic Salary/30

Per Hour Salary = Per Day Salary / (the regular working hours per day in the UAE)

Total Overtime Pay = Number of Overtime Hours x Per Hour Salary x 1.25

Method for Calculating Overtime Pay on a Public Holiday

Per Day Salary = Basic Salary/30

Per Hour Salary = Per Day Salary/8 (the regular working hours per day in the UAE)

Total Overtime Pay = Number of Overtime Hours x Per Hour Salary x 1.50

In addition, the employer must also give a compensatory day off to the employee. If they cannot do so, they must give an additional compensation of 150% for the overtime. In that case, the formula would be:

Total Overtime Pay = Number of Overtime Hours x Per-Hour Salary x 2.50

Read More: How to Calculate Overtime Pay in UAE (2026 Labor Law Guide)

Example of Overtime Pay Calculation in UAE

And suppose an employee’s basic salary is 3500 dirhams per month, and he has worked 6 hours and time in a month. UAE Overtime Calculation.

Now based on this example, let’s see how working days and public holidays are calculated and how time is calculated in the UAE.

Example 1: Overtime Pay Calculation on a Regular Working Day

Per Day Salary: 3500/30 = AED 116.67

Per Hour Salary: 115.07 / = AED 14.58

Total Overtime Pay: 100 x 14.58 x 1.25 = AED 1,822.50

Read More: How to Calculate Leave Salary in UAE (Step-by-Step Guide)

Example 2: Overtime Pay Calculation on a Public Holiday

Per Day Salary: 3500/30 = AED 116.67

Per Hour Salary: 116.67/8 = AED 14.58

Total Overtime Pay: 100 x 14.58 x 1.50 = AED 2,187

If the company does not provide leave in return, the total amount of overtime is calculated as follows:

Total Overtime Pay: 100 x 14.58 x 2.50 = AED 3,645

What Are the Common Overtime Pay Calculation Mistakes in UAE and How Can You Avoid Them?

Here are some of the most common mistakes employers tend to make in overtime pay calculation in the UAE:

Using the Wrong Formula

Some companies in the UAE use the wrong formula to calculate BB overtime

The correct method is to find out the first day’s salary using this formula:

Per Day Salary = Basic Salary/30

But what if you also use this wrong formula to calculate the same thing?

Per Day Salary = Basic Salary x 12/365

One of the major reasons for overtime miscalculation in the UAE is that it is best to consult a manager when calculating overtime.

Applying the Wrong Overtime Payment Rate

To give a correct comparison of overtime, it is necessary to apply the correct amount of alcohol. 25% for normal overtime, 50% for emergency and PAN. Many people ignore this difference. UAE Overtime Calculation To avoid mistakes, first determine the amount of overtime and then calculate correctly.

Neglecting Special Considerations

According to UAE labor law, if an employee works more than six hours a day during Ramadan, he should receive overtime, but companies ignore these changes because they are not aware of the new laws, so calculate overtime according to the reduced working hours during Ramadan UAE overtime calculation.

Excluding Exceptions

Many employees in the UAE are not eligible for overtime, which is a given. UAE Overtime Calculation Administrators, tube well cameramen, employees working in shipping, etc., should not be included in the calculation of overtime, and the UAE labor law has been implemented so that only qualified employees get overtime.

Not Providing Compensatory Leave Bonus

Read More: Leave Salary Calculator UAE 2026 – Calculate Your Paid Leave Salary in Seconds

If an employee takes a government holiday or a fixed time off, he should get an alternative holiday with 150% of his salary. If the company does not give an alternative holiday, the overtime will be remembered and should be 250. UAE Overtime Calculation However, most employers do not include personal leave in the calculation of overtime. To avoid this, keep a proper record of overtime so that it is correct.

Wrapping Up

Overtime calculations in the UAE are often inaccurate due to errors, but it is important to keep overtime payments accurate so that employees are happy and the company operates in accordance with the law.

In this blog, we have explained the important rules, types, methods, and common problems of calculating overtime pay in the UAE in a concise manner so that mistakes can be avoided and the payroll process can be made easier. UAE Overtime Calculation Therefore, you can also see the app, which is a complete platform, and it automatically explains all the steps of payroll from time calculation to tax so that the correct app is in accordance with the correct law and is effective.

Conclusion

This blog explains the rules and types of overtime pay calculation in the UAE in a simple way. It explains through examples how overtime is calculated on weekdays and public holidays and how to calculate alternative holidays or angular mean. The blog also includes the importance of correct calculation and ways to avoid mistakes. UAE Overtime Calculation It also explains the platform from which the process can be made easy and efficient.

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