Step 1: Find the hourly rate
For an employee working a standard 8-hour day, a commonly used calculation is:
Basic Hourly Wage = MonthlyBasic Salary ÷ 30 ÷ 8
UAE Overtime Calculator
Estimate your overtime pay using your basic salary, overtime hours and the applicable rate.
Uses the formulas shown on this page. Actual entitlement depends on the applicable employment rules.
Calculate your overtime pay in UAE by using our free overtime calculator tool easily. It will help you estimate overtime hours salary according to normal days, weekends, and public holidays according to UAE Labour Law.
What is Overtime Pay in According to UAE Labour Law?
Overtime pay is the additional compensation which the employee gets for working beyond their normal working hours. According to the UAE Labour Law, the normal working hours are 8 hours per day or 48 hours per week.
If the person works beyond this set limit on request, they must be paid at premium rates instead of the basic hourly wage. However, the amount of overtime pay depends on when the worker spends extra working hours.
Daytime overtime on regular working days usually carries a 25% premium pay. If the overtime is worked between 10 PM and 4 AM, he is eligible to get at least 50% extra with basic wage. However, this nighttime overtime is not provided to workers who work on shifts.
Who is Eligible to Get Overtime Pay?
Most of the UAE private-sector employees are eligible to get overtime pay according to the UAE Labour Law. A more detail is given below:
- Employees who work beyond their normal working hours qualify for overtime pay.
- Senior managerial and supervisory positions are excluded from overtime pay.
- Overtime pay is eligible for all workers who work extra hours; it does not depend on their nationality.
- Employees in DIFC and ADGM have separate employment regulations. That’s why their overtime rules may differ from the federal UAE Labour Law.
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Before calculating your overtime, employees should check their:
- Employment contract
- Job position and category
- Working arrangement
- Applicable UAE employment regulations
- Many UAE free zones generally follow the federal employment framework.
When is Overtime Applicable for Employees?
Not all working hours are calculated as overtime. However, overtime only applies when an eligible worker works beyond their normal daily working hours. If a person works on weekly rest days, official public holidays, or on New Year’s Eve, it also counts as overtime work.
These extra hours are generally assigned, requested, or approved by the employer. However, if the employee works voluntarily without employer instruction or request, he will not qualify for overtime. To get paid for your overtime properly, you should also keep a record of your extra working hours, including dates, start, and end times.
How to Calculate Overtime From Basic Salary? Basic Formula
The first important step to estimate your overtime salary is to find your basic hourly salary. You should exclude other allowances, as according to Labour Law, overtime pay is only provided according to basic wage.
Here is a formula you can use for overtime calculation in the UAE.
Basic Salary ÷ 30 ÷ 8
Overtime Pay =
Hourly Rate × Rate Multiplier
× Overtime Hours
Step 2: Apply the Relevant Overtime
After you get the hourly basic wage, you must apply the relevant overtime.
According to the Ministry of Human Resources and Emiratisation
(MOHRE), the basic hourly wage can be calculated as:
Hourly Rate
= Basic Monthly Salary ÷ 30 ÷ 8
Normal Overtime Rate
= Hourly Rate × 1.25
Night Overtime Rate
= Hourly Rate × 1.50
Rest Day Rate
= Hourly Rate × 1.50 when the employee is not given another day off.
Official Holiday Rate
= Hourly Rate × 2.50, according to the MOHRE overtime guide.
How to Use Our Overtime Calculator in the UAE?
When you calculate your overtime in the UAE, you can make mistakes in calculations. That’s why we designed the UAE overtime calculator to make calculations easier for all employees. Here is how you can use our calculator for UAE overtime calculation:
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1
You should search for the “Overtime calculator” in your search browser.
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2
After that, open our website and locate the tool.
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3
Now, fill in the required fields by providing these details:
- Basic monthly salary (AED)
- Number of overtime hours
- Type of overtime
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4
After that, click on the “calculate overtime” button to get the results.
Details of UAE Overtime Rules and Working Hour Limits
The UAE government has set specific rules about how many hours employees can work and how extra hours are handled. When employees know these rules, they can avoid extra working hours and get their overtime rights correctly.
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Workers can only work up to 2 hours per day as overtime. However, in certain exceptional situations, there can be an increase in working time.
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In some emergency situations or to prevent financial loss, extra hours may be allowed.
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During Ramadan, normal working hours are reduced by 2 hours per day without reducing the employee’s salary.
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Commuting from home to work is not considered working hours.
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If the worker spends time traveling between different workstations during working hours, it is generally counted as working time.
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To avoid disputes, both employee and employer should keep a record of employees’ working hours and overtime.
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If a worker thinks the company did not pay his full rightful overtime pay, then he can raise the issue with MOHRE.
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Employers who repeatedly violate labour rules may face fines or other legal penalties.
Final Words
Understanding the UAE’s overtime laws and applying the right formula for basic salary will assist you in UAE overtime calculation.
However, when employees calculate overtime manually, they often get confused or mix up hourly rates. That’s why you can use our UAE overtime calculator and get your extra earnings computed according to the number of hours you have worked.
Avoid
Calculation Errors
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Results
Know Your
Extra Earnings
FAQs
01Is overtime calculated on basic salary or gross salary in the UAE?
Overtime is calculated on employees basic salary, not on the gross salary, as it includes allowances.
02What is the maximum overtime allowed per day in the UAE?
The maximum overtime allowed is up to 2 additional working hours per day according to the UAE Labour Law.
03What happens if the employer refuses to pay overtime?
If the eligible overtime is not paid by the employer, then the employee can raise a labour complaint with MOHRE.
04How much is 1 hour of overtime in the UAE?
The overtime rate, even for one hour, depends on the type, such as normal day, night overtime, or on public holidays. However, one normal overtime hour is generally paid at the basic hourly wage plus at least 25%.
05How is overtime calculated on public holidays in the UAE?
If the worker works on an official public holiday, then he can receive another day off. Or, he can receive payment based on the normal working-day wage plus at least 50% of the basic wage.