Overtime Calculation in UAE 2025 - UAE Labour Law Overtime Calculator
UAE Overtime Calculator - Free Tool
Understanding Overtime in UAE Labour Law
Overtime in the UAE refers to any work performed beyond the standard working hours as defined by the UAE Labour Law. According to Article 17 of Federal Decree-Law No. 33 of 2021, the standard working hours in the private sector are 8 hours per day or 48 hours per week. Any work performed beyond these hours is considered overtime and must be compensated at higher rates than regular working hours.
The Ministry of Human Resources and Emiratisation (MOHRE) strictly regulates overtime to ensure employees receive fair compensation for additional work hours. Understanding how overtime is calculated in Dubai and across all Emirates is essential for both employers and employees to ensure compliance with UAE labour law 2025 requirements and protect workers' rights.
Types of Overtime in UAE
The UAE Labour Law recognizes different types of overtime based on when and why the work is performed. Each type has specific calculation methods and rates as per UAE labour law overtime calculation guidelines issued by MOHRE.
1. Normal Daytime Overtime
+25% Rate (1.25x)Work performed beyond regular 8-hour workday during normal business hours (typically 9 AM to 6 PM). This is the most common type of overtime.
2. Night Overtime (10 PM - 4 AM)
+50% Rate (1.5x)Work performed during late-night hours between 10:00 PM and 4:00 AM. This higher rate compensates employees for working during unsociable hours. Note: Shift workers may be exempt from this rule.
3. Friday/Rest Day Overtime
+50% Rate (1.5x) + Compensatory Day OffWork performed on the employee's designated rest day (typically Friday or as specified in employment contract). Employees are entitled to either a compensatory rest day or 50% additional payment.
4. Public Holiday Overtime
+50% Rate (1.5x) + Compensatory Day OffWork performed on official UAE public holidays. Employees receive overtime pay at 50% additional rate plus a compensatory day off. If no compensatory day is provided, the rate increases to 150% (2.5x multiplier).
Overtime Calculation Formula UAE - Complete Guide
The overtime calculation in UAE as per labour law follows specific formulas prescribed by MOHRE. All overtime calculations are based on the employee's basic salary only and do not include allowances such as housing, transportation, or other benefits. Understanding the correct formula for overtime calculation in Dubai and across the UAE is crucial for accurate payroll processing.
Step 1: Calculate Hourly Wage
Method 1 (Commonly Used - Simplified):
\[ \text{Daily Wage} = \frac{\text{Monthly Basic Salary}}{30} \]
\[ \text{Hourly Wage} = \frac{\text{Daily Wage}}{8} = \frac{\text{Monthly Basic Salary}}{30 \times 8} = \frac{\text{Monthly Basic Salary}}{240} \]
Method 2 (Annual Calculation - More Precise):
\[ \text{Daily Wage} = \frac{\text{Monthly Basic Salary} \times 12}{365} \]
\[ \text{Hourly Wage} = \frac{\text{Daily Wage}}{8} = \frac{\text{Monthly Basic Salary} \times 12}{365 \times 8} = \frac{\text{Monthly Basic Salary} \times 12}{2920} \]
Note: Both methods are accepted. Method 1 (÷30÷8) is simpler and more commonly used by employers in the UAE. Method 2 (×12÷365÷8) provides a more precise daily rate accounting for the actual number of days in a year.
Step 2: Apply Overtime Multiplier
Normal Daytime Overtime Calculation:
\[ \text{Overtime Pay} = \text{Hourly Wage} \times 1.25 \times \text{Number of Overtime Hours} \]
Night Overtime Calculation (10 PM - 4 AM):
\[ \text{Overtime Pay} = \text{Hourly Wage} \times 1.5 \times \text{Number of Overtime Hours} \]
Friday/Rest Day Overtime Calculation:
\[ \text{Overtime Pay} = \text{Hourly Wage} \times 1.5 \times \text{Number of Overtime Hours} + \text{Compensatory Day Off} \]
Holiday Overtime with Compensatory Day Off:
\[ \text{Overtime Pay} = \text{Hourly Wage} \times 1.5 \times \text{Number of Overtime Hours} + \text{Compensatory Day Off} \]
Holiday Overtime WITHOUT Compensatory Day Off:
\[ \text{Overtime Pay} = \text{Hourly Wage} \times 2.5 \times \text{Number of Overtime Hours} \]
Overtime Calculation Examples - Step by Step
Example 1: Normal Daytime Overtime Calculation
Given:
- Monthly Basic Salary: AED 5,000
- Overtime Hours: 20 hours
- Type: Normal daytime overtime
Calculation Steps:
Step 1: Calculate daily wage
\[ \text{Daily Wage} = \frac{5{,}000}{30} = 166.67 \text{ AED} \]
Step 2: Calculate hourly wage
\[ \text{Hourly Wage} = \frac{166.67}{8} = 20.83 \text{ AED} \]
Step 3: Calculate overtime rate (25% extra)
\[ \text{Overtime Hourly Rate} = 20.83 \times 1.25 = 26.04 \text{ AED/hour} \]
Step 4: Calculate total overtime pay
\[ \text{Total Overtime Pay} = 26.04 \times 20 = 520.80 \text{ AED} \]
Result: The employee receives AED 520.80 for 20 hours of normal overtime, bringing their total monthly salary to AED 5,520.80.
Example 2: Night Overtime Calculation (10 PM - 4 AM)
Given:
- Monthly Basic Salary: AED 6,000
- Overtime Hours: 15 hours (worked between 10 PM and 4 AM)
- Type: Night overtime
Calculation Steps:
Step 1: Calculate hourly wage
\[ \text{Hourly Wage} = \frac{6{,}000}{30 \times 8} = \frac{6{,}000}{240} = 25 \text{ AED} \]
Step 2: Calculate night overtime rate (50% extra)
\[ \text{Night Overtime Rate} = 25 \times 1.5 = 37.50 \text{ AED/hour} \]
Step 3: Calculate total overtime pay
\[ \text{Total Overtime Pay} = 37.50 \times 15 = 562.50 \text{ AED} \]
Result: The employee receives AED 562.50 for 15 hours of night overtime, bringing their total monthly salary to AED 6,562.50.
Example 3: Friday Overtime Calculation in UAE
Given:
- Monthly Basic Salary: AED 8,000
- Overtime Hours: 8 hours (worked on Friday/rest day)
- Type: Friday overtime with compensatory day off
Calculation Steps:
Step 1: Calculate hourly wage
\[ \text{Hourly Wage} = \frac{8{,}000}{240} = 33.33 \text{ AED} \]
Step 2: Calculate Friday overtime rate (50% extra)
\[ \text{Friday Overtime Rate} = 33.33 \times 1.5 = 50 \text{ AED/hour} \]
Step 3: Calculate total overtime pay
\[ \text{Total Overtime Pay} = 50 \times 8 = 400 \text{ AED} \]
Result: The employee receives AED 400 for Friday overtime PLUS a compensatory day off during the week.
Example 4: Holiday Overtime Calculation in UAE
Given:
- Monthly Basic Salary: AED 7,000
- Overtime Hours: 8 hours (worked on public holiday)
- Scenario A: With compensatory day off
- Scenario B: Without compensatory day off
Calculation Steps:
Step 1: Calculate hourly wage
\[ \text{Hourly Wage} = \frac{7{,}000}{240} = 29.17 \text{ AED} \]
Scenario A - With Compensatory Day Off:
\[ \text{Holiday Overtime Rate} = 29.17 \times 1.5 = 43.75 \text{ AED/hour} \]
\[ \text{Total Overtime Pay} = 43.75 \times 8 = 350 \text{ AED} + \text{Compensatory Day Off} \]
Scenario B - Without Compensatory Day Off:
\[ \text{Holiday Overtime Rate} = 29.17 \times 2.5 = 72.92 \text{ AED/hour} \]
\[ \text{Total Overtime Pay} = 72.92 \times 8 = 583.36 \text{ AED} \text{ (No day off)} \]
Result: The employee receives either AED 350 + compensatory day off OR AED 583.36 if no compensatory day is granted.
UAE Labour Law Overtime Rules and Regulations
The UAE Labour Law establishes clear rules regarding overtime work to protect employee rights and ensure fair compensation. These regulations apply to all private sector employees in Dubai, Abu Dhabi, Sharjah, and all other Emirates under the jurisdiction of MOHRE (Ministry of Human Resources and Emiratisation).
Maximum Overtime Hours
Important Limitation: According to Article 17 of UAE Labour Law, employers may require employees to work overtime, but the additional hours must not exceed 2 hours per day under normal circumstances. This limit protects employees from excessive work hours and ensures work-life balance.
| Overtime Limit | Maximum Hours | Additional Notes |
|---|---|---|
| Per Day | 2 hours maximum | Can be exceeded in exceptional circumstances with employee consent |
| Per Week | No specific weekly cap | Must respect daily limits |
| Consecutive Rest Days | Maximum 2 days | Employees cannot work more than 2 consecutive rest days |
| During Ramadan | Reduced working hours | Standard working hours reduced to 6 hours per day |
Key Overtime Regulations
- Based on Basic Salary: All overtime calculations must use only the basic salary component. Housing allowances, transportation allowances, bonuses, and other benefits are excluded from overtime pay calculation as per UAE labour law.
- Payment Timeline: Overtime payments must be included in the employee's monthly salary payment and reflected accurately on the payslip as required by MOHRE regulations.
- Employee Consent: While employers can request overtime work up to 2 hours per day, employees are not contractually obligated to work overtime unless specified in their employment contract or during emergency situations.
- Break Requirements: If employees work continuous overtime for 5 or more hours, they are entitled to a minimum 1-hour break. This break time is not counted as part of overtime hours.
- Shift Workers Exception: The 50% rate for night work (10 PM - 4 AM) does not apply to employees working on scheduled shift rotations. Shift workers follow standard overtime rates.
- Wage Protection System (WPS): All overtime payments must be processed through the UAE Wage Protection System to ensure compliance and timely payment to employees.
- Record Keeping: Employers must maintain accurate records of all overtime hours worked by employees, including dates, times, and reasons for overtime as required for MOHRE inspections.
- Emergency Overtime: In cases of force majeure or urgent situations requiring immediate attention, different rules may apply, and the standard 2-hour daily limit may be exceeded with proper justification.
Exemptions from Overtime Pay in UAE
Not all employees are entitled to overtime pay under UAE labour law. MOHRE has specified certain categories of workers who are exempt from overtime calculations based on their job roles and responsibilities.
Categories Exempt from Overtime:
- Senior Management: Chairpersons and members of boards of directors, company owners, and managing directors are not entitled to overtime pay.
- Supervisory Positions: Employees in managerial or supervisory positions who exercise the employer's authority, such as making hiring/firing decisions or managing departments independently.
- Certain Maritime Workers: Employees working on naval ships or in specific marine industries may have different compensation structures.
- Specific Sectors: Some free zones in the UAE (such as DIFC and ADGM) have their own employment regulations that may differ from mainland UAE labour law.
- Freelancers and Contractors: Independent contractors and freelancers typically negotiate their own rates and are not covered by standard overtime regulations.
Note: If you are unsure whether your position qualifies for overtime pay, check your employment contract or consult with MOHRE or a labour law specialist in the UAE.
Common Mistakes in Overtime Calculation UAE
Many employers and HR departments make errors when calculating overtime in the UAE, which can lead to legal disputes and MOHRE penalties. Understanding these common mistakes helps ensure accurate overtime pay calculation in Dubai and across all Emirates.
Mistake 1: Using Gross Salary Instead of Basic Salary
Incorrect: Calculating overtime based on gross salary (basic salary + allowances)
Correct: Overtime calculation in UAE MOHRE guidelines specifies that only the basic salary should be used, excluding all allowances such as housing, transportation, phone allowances, etc.
Mistake 2: Wrong Daily/Hourly Wage Calculation
| Method | Formula | Status |
|---|---|---|
| Correct Method 1 | Basic Salary ÷ 30 ÷ 8 | ✓ Accepted |
| Correct Method 2 | Basic Salary × 12 ÷ 365 ÷ 8 | ✓ Accepted |
| Incorrect Method | Basic Salary ÷ 26 ÷ 8 | ✗ Wrong |
Mistake 3: Not Providing Compensatory Days Off
When employees work on rest days or public holidays, employers must provide either a compensatory day off plus 50% overtime pay, or 150% overtime pay if no compensatory day is granted. Failing to provide the compensatory day while paying only 50% extra is a violation of UAE labour law overtime calculation requirements.
Mistake 4: Exceeding Maximum Overtime Limits
Regularly requiring employees to work more than 2 hours of overtime per day without proper authorization or emergency justification violates UAE labour law and can result in MOHRE penalties for the employer.
How to Calculate Overtime in UAE - Quick Reference Guide
Quick Formula Reference for Overtime Calculation in UAE:
Step 1: Calculate Hourly Wage
\[ \text{Hourly Wage} = \frac{\text{Basic Monthly Salary}}{240} \]
(Alternatively: Basic Salary × 12 ÷ 2920)
Step 2: Apply Multiplier Based on Overtime Type
- Normal Day: Hourly Wage × 1.25 × Hours
- Night (10 PM-4 AM): Hourly Wage × 1.5 × Hours
- Friday/Rest Day: Hourly Wage × 1.5 × Hours + Day Off
- Holiday (with day off): Hourly Wage × 1.5 × Hours + Day Off
- Holiday (no day off): Hourly Wage × 2.5 × Hours
Frequently Asked Questions - Overtime Calculation in UAE
Overtime Pay Calculation in UAE - Best Practices for Employers
For HR departments and employers managing payroll in the UAE, following best practices for overtime calculation ensures compliance with UAE labour law MOHRE regulations and maintains positive employee relations.
- Implement Automated Systems: Use HRMS or payroll software that automatically calculates overtime based on UAE labour law formulas to reduce manual errors and ensure accuracy in overtime calculation in Dubai and other Emirates.
- Maintain Accurate Records: Keep detailed records of all overtime hours, including dates, times, reasons for overtime, and type of overtime (normal, night, Friday, holiday) for MOHRE compliance audits.
- Clear Communication: Ensure all employees understand how overtime is calculated, their entitlements, and the company's overtime policy as per UAE new labour law requirements.
- Get Written Consent: For overtime exceeding standard limits, obtain written consent from employees to protect both parties and maintain documentation for MOHRE if questioned.
- Transparent Payslips: Clearly show overtime hours and payments separately on monthly payslips, breaking down normal overtime, night overtime, and holiday overtime as applicable.
- Wage Protection System: Process all overtime payments through the UAE Wage Protection System (WPS) to ensure compliance and avoid penalties from MOHRE.
- Regular Training: Train HR and payroll staff on the latest UAE labour law overtime calculation formulas and updates from MOHRE to ensure ongoing compliance.
- Monitor Excessive Overtime: Track employees working consistently high overtime hours as this may indicate understaffing issues or potential labour law violations regarding the 2-hour daily maximum.
UAE Overtime Calculation vs. Other GCC Countries
While this guide focuses on overtime calculation in UAE labour law, it's worth noting that other GCC countries have different overtime regulations. Understanding these differences is important for companies operating across multiple GCC markets.
| Country | Normal Overtime Rate | Holiday/Night Overtime | Maximum Daily Overtime |
|---|---|---|---|
| UAE | +25% (1.25x) | +50% (1.5x) | 2 hours |
| Saudi Arabia | +50% (1.5x) | +50% (1.5x) | 2 hours |
| Qatar | +25% (1.25x) | +50% (1.5x) | 2 hours |
| Kuwait | +25% (1.25x) | +50% (1.5x) | 3 hours |
| Oman | +25% (1.25x) | +50% (1.5x) | 2 hours |
Note: Always consult the specific labour laws of each country for detailed overtime regulations as rules can vary significantly.
Why Use RevisionTown's UAE Overtime Calculator?
Our overtime calculator UAE tool provides accurate, instant calculations based on the latest MOHRE regulations and Federal Decree-Law No. 33 of 2021. Whether you're an employee verifying your overtime pay or an employer managing payroll in Dubai, Abu Dhabi, Sharjah, or any Emirates, this calculator offers several advantages:
- 100% Compliant: All calculations follow official MOHRE overtime calculation formulas as per UAE labour law 2025, ensuring legal compliance for employers and accurate entitlements for employees.
- Multiple Overtime Types: Calculate normal daytime overtime, night overtime (10 PM - 4 AM), Friday overtime calculation in UAE, and holiday overtime calculation in UAE with different scenarios.
- Instant Results: Get immediate overtime pay calculations with detailed step-by-step breakdowns showing exactly how your overtime is calculated.
- Free to Use: Our UAE overtime calculator is completely free with no registration, subscriptions, or hidden charges required.
- Educational Resource: Beyond calculations, this page provides comprehensive information about UAE labour law overtime rules, helping both employers and employees understand their rights and obligations.
- Mobile Accessible: Access the calculator from any device - desktop, tablet, or smartphone - for convenient overtime calculation in Dubai on the go.
- Regularly Updated: We continuously update the calculator to reflect any changes in UAE labour law MOHRE guidelines and regulations.
Understanding overtime calculation as per UAE labour law is essential for financial planning, payroll management, and ensuring fair compensation. Use our overtime calculator UAE tool to quickly determine overtime pay and make informed decisions about your work schedule and earnings with confidence.