Overtime Calculation in UAE: Step-by-Step Formula with Examples

Target keyword: Overtime calculation UAE | Word count: 1,110 | Format: E (question-driven) | Meta description: Learn how to calculate overtime pay in the UAE under Labour Law. Includes day, night and Friday rates with worked examples.

How much should I be paid for overtime in the UAE? This is the question your payroll system should answer automatically, yet many employees discover they are underpaid months or years into their role. The formula is not mysterious. It is set in law. Here is the complete breakdown.

UAE Labour Law Overtime: The Baseline

Under Federal Decree-Law No. 33 of 2021, the maximum normal working hours in the UAE are 8 hours per day and 48 hours per week for private sector employees. Any time beyond this is overtime and must be compensated at premium rates.

The law mandates that overtime compensation cannot be less than 25% above your base wage for daytime work, and 50% above for night or rest day work. This is a legal floor, not a ceiling. Your contract can offer more.

According to MOHRE, the calculation method is standardised across the private sector. Every employer must use the same formula. This means your payroll team cannot invent their own rate.

The Standard Daytime Overtime Formula

Daytime overtime is work completed between 06:00 and 21:00 on a working day.

The logic: divide your monthly basic salary by 30 (average working days) and then by 8 (standard working hours) to find your hourly base rate. Multiply by the number of overtime hours worked, then multiply by 1.25 to add the 25% premium.

Example: Basic salary AED 8,000 per month.

Step 1: AED 8,000 ÷ 30 ÷ 8 = AED 33.33 per hour (base rate).

Step 2: AED 33.33 × 2 overtime hours × 1.25 = AED 83.33.

Two hours of daytime overtime earns AED 83.33.

Night and Friday Overtime: The 1.5x Rate

Work completed between 21:00 and 04:00, or work completed on your designated rest day (typically Friday), earns a 50% premium instead of 25%.

Using the same AED 8,000 example: AED 33.33 × 2 hours × 1.5 = AED 100.

Two hours of night or Friday overtime earns AED 100 instead of AED 83.33. The difference is AED 16.67, the extra 25% premium.

Working on Friday: Compensation or Compensatory Day

If you work your rest day (Friday), you earn the 1.5x rate for those hours. However, you are also entitled to a compensatory rest day during the same week or within an agreed timeframe.

If your employer fails to provide a compensatory day off, the multiplier increases to 2.5, giving you 150% extra pay instead of 50%.

Example: You work Friday and do not receive a day off. Eight hours at the 2.5x rate = AED 33.33 × 8 × 2.5 = AED 666.40 for that one day.

Daily and Weekly Caps

The law imposes limits on how much overtime you can be required to work.

• Maximum 2 additional hours per day (so your total working day is 10 hours).
• Total weekly working hours cannot exceed 144 hours every three weeks, averaged.
• Maximum 240 hours of overtime per year.

These are legal limits. Your employer cannot require you to work beyond them without written consent and compensation for additional hours. If required overtime approaches these limits, inform your HR or labour representative.

Worked Example: AED 8,000 Monthly Salary

Who Is Exempt from Overtime?

Some roles are exempt from overtime entitlements. According to MOHRE guidance, senior management, executive directors, and employees on fixed monthly allowances (not hourly or daily rates) may have different arrangements set out in their contracts.

However, exemption is not automatic. Your contract must explicitly state you are exempt and specify an alternative compensation method. If your contract is silent on overtime, you are entitled to the statutory rates regardless of your seniority.

Operational staff, supervisors, technical roles, and clerical staff are always entitled to statutory overtime unless your contract explicitly waives this right and provides a superior alternative.

Common Payroll Mistakes

Mistake 1: Using gross salary instead of basic salary. The formula uses basic salary only. Allowances, bonuses, and commissions are not included. If your package is AED 4,000 basic plus AED 2,000 transport allowance, use AED 4,000 for the calculation, not AED 6,000.

Mistake 2: Forgetting the 1.5x rate for Friday. Many payroll systems default to 1.25x for all overtime. If your contract says Friday is your rest day, night work must use 1.5x, not 1.25x.

Mistake 3: Omitting compensatory days. If you work Friday, your employer must either provide a compensatory day off or pay the 2.5x rate. Failing to do either is underpayment.

Mistake 4: Exceeding the 2-hour daily cap without consent. If you are required to work 3 hours of overtime in a day, that is a breach unless you have agreed in writing. The third hour must be negotiated separately.

What to Do If You Are Underpaid

Calculate your own overtime using the formulas above. Compare to your payslip. If there is a gap, request a corrected pay slip from your employer first. Often this is an honest mistake.

If your employer refuses to correct it, file a complaint with MOHRE’s Labour Dispute Resolution Centre. Bring your contract, payslips for the past 12 months, and your calculated correct amount. MOHRE will investigate and order backpayment if warranted.

You are entitled to 3 years of backpay for overtime violations under UAE law. Do not accept silence on this issue.

Using the Overtime Calculator

Rather than calculating by hand, use the Overtime Calculator UAE tool. Input your basic salary, the number of hours worked, and the time of day. The tool will calculate your exact entitlement in seconds and account for all multipliers and caps.

For broader context on your employment rights under UAE Labour Law, review the UAE Labour Law Working Hours guide.

Kim Kiyingi

Kim Kiyingi is an HR Career Specialist with over 20 years of experience leading people operations across multi-property hospitality groups in the UAE. Published author of From Campus to Career (Austin Macauley Publishers, 2024). MBA in Human Resource Management from Ascencia Business School. Certified in UAE Labour Law (MOHRE) and Certified Learning and Development Professional (GSDC). Founder of InspireAmbitions.com, a career development platform for professionals in the GCC region.

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