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UAE Overtime Pay Calculator

Free UAE overtime calculator. Pay at the statutory 125% normal rate and 150% night, rest-day and holiday rate, on your basic salary.

Published

Overtime at 125% normal and 150% night or holiday.

Total overtime pay

Hourly basic

Normal OT (125%)

Night OT (150%)

Worked example

Take a basic salary of AED 12,000 a month, 10 hours of ordinary overtime and 4 hours of night or holiday overtime. First find the hourly basic. Average monthly hours are 48 a week times 52 weeks divided by 12, which is about 208 hours, so the hourly basic is 12,000 divided by 208, or roughly AED 57.69. Ordinary overtime is paid at 125 percent of that rate: 10 hours times 57.69 times 1.25 is about AED 721. Night and holiday overtime is paid at 150 percent: 4 hours times 57.69 times 1.5 is about AED 346. Together the overtime adds about AED 1,067 on top of the normal salary.

Step Amount

How it is calculated

The calculator derives an hourly rate from your monthly basic salary using average monthly hours, taken as the 48-hour standard week multiplied by 52 weeks and divided by 12. Ordinary overtime hours are paid at that hourly rate plus 25 percent, a 125 percent multiplier under UAE Labour Law. Hours worked at night, defined as between 10pm and 4am, or on a rest day or public holiday, are paid at the hourly rate plus 50 percent, a 150 percent multiplier. The two amounts are added to give total overtime pay. Overtime is calculated on basic salary rather than the full package, and senior or management roles can be excluded from these rules, so always check your contract and the firm’s policy.

Frequently asked questions

How is overtime paid in the UAE?
Under the UAE Labour Law, overtime is paid at your normal hourly rate plus 25 percent for ordinary extra hours. Hours worked between 10pm and 4am, or on a rest day or public holiday, are paid at the normal hourly rate plus 50 percent. The hourly rate is derived from your basic salary and the standard 48-hour working week. Senior management roles can be excluded from overtime rules.
Is overtime calculated on basic salary or total package?
Overtime is calculated on basic salary only, not on your total remuneration package. Housing allowances, transport allowances, and other benefits are excluded from the base used to derive the hourly rate. This means employees with a large allowance component and a relatively small basic salary will receive lower overtime pay than someone with the same total package structured as mostly basic.
What is the maximum overtime an employee can work in the UAE?
The UAE Labour Law permits a maximum of two hours of overtime per day, meaning the working day should not exceed ten hours, except in specific circumstances set out in the law such as operational emergencies. Managers and supervisors may be subject to different limits. Any overtime arrangement must also respect the weekly rest-day entitlement, with compensatory time off or premium pay if a rest day is worked.
How does the 48-hour standard working week affect the hourly rate?
The calculator derives the hourly basic rate by dividing the monthly basic salary by the average monthly hours, which is 48 hours per week multiplied by 52 weeks and divided by 12 months, giving approximately 208 hours. A monthly basic of AED 12,000 therefore produces an hourly rate of about AED 57.69. During Ramadan the standard working day is reduced by two hours for Muslim employees, but this does not change the underlying overtime multipliers.

Related calculators

Sources

  1. MOHRE — End of Service Gratuity (Labour Law), Ministry of Human Resources and Emiratisation, UAE
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