Most of the employees in the UAE work overtime during work periods that are highly intense or even on official state holidays. Nonetheless, one of the questions that workers put across is the calculation and how much more pay they are supposed to get due to overtime.

The UAE labour law explicitly outlines the manner in which employers should remunerate employees who work overtime or during public holidays. The knowledge of such rules will enable employees to make sure they receive fair compensation for the additional job they do.

Here, in this comprehensive guide, you will know how overtime is calculated in the UAE, what formula is used, what are the actual examples, what are the rules of the labour law are, and what is the calculation of the overtime pay is calculated regarding public holidays.

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What Is Overtime in the UAE?

Any work that is done after the normal working hours stipulated under the UAE labour law is considered overtime.

According to the law:

• The normal working days are 8 hours a day.
• Or 48 hours per week

In case an employee does more hours than these ones, the extra time is counted as overtime and should be paid as overtime.

The sole purpose of the overtime rules is to provide workers with reasonable compensation for the extra work and safeguard the rights of workers.

Types of Overtime in the UAE

Overall, overtime in the UAE may arise under various conditions depending on the time when the additional work is done.

1. Overtime on Normal Working Days

In case an employee works after the hours of regular employment, he/she is allowed to receive their normal hourly salary plus 25%.

2. Night Overtime

In case overtime has been taken during the period of 10 PM to 4 AM, then the 50 percent additional pay is allowed to the employee rather than 25 percent.

3. Public Holiday Overtime

In cases where an employee is on duty on an official holiday that is a public day, the employer has the duty of offering the employee extra pay for a compensatory day.

Both forms of overtime contain a few more or fewer rules and calculations.

UAE Labour Law Rules for Overtime

The labour law in the UAE gives a number of significant provisions concerning overtime work.

Key rules include:

• In the general cases, overtime should not take more than two hours a day.
• The pay to be given in overtime is to be computed on the basic salary of the employee.
• Staff who work beyond the regular working time are expected to be paid overtime based on the overtime wage.
• Employees who have to work on official public holidays should be paid overtime or given another day off.

These regulations make sure that employers are reasonable towards employees and comply with the law.

Formula for Overtime Calculation in UAE

In order to arrive at the correct overtime, there are a few factors that should be taken into consideration.

These include:

• The basic salary of the employee every month.
• Total number of overtime worked.
• Overage of overtime (normal, night, or public holiday)

One of the most widespread alternatives to calculating overtime is:

Hourly Rate = (Basic Salary × 12 ÷ 365) ÷ 8

Once the hourly rate is calculated, it is possible to compute the overtime payment and use the corresponding overtime percentage.

Read Also: Sharjah Taxi Numbers You Should Know + Fare Estimator

Overtime Calculation on Normal Working Days

In case of overtime in a normal working day, the employees earn their regular hourly wages as well as an extra 25 percent.

Example Calculation

• Monthly Basic Salary: AED 3,200
  • Step 1 – Calculate Daily Wage
  • 3200 × 12 ÷ 365 = AED 105.20
  • Step 2 – Calculate Hourly Rate
  • 105.20 ÷ 8 = AED 13.15
  • Step 3 – Apply Overtime Rate
  • 13.15 × 1.25 = AED 16.43 per overtime hour
• In case an employee has 10 overtime hours.
• Total overtime pay:
  • 10 × 16.43 = AED 164.30

Night Overtime Calculation in the UAE

The overtime that is conducted in the later hours is paid at an increased rate.

• The hours of night overtime are:
  • 10:00 PM and 4:00 AM

The workers who work in this season are entitled to an extra half wage.

Example

• Hourly rate: AED 13.15
• Night overtime rate:
  • 13.15 × 1.5 = AED 19.72 per hour

This will make the employees who work late to be given better pay.

Overtime Calculation in the UAE for Public Holidays

The UAE has public holidays, which include:

• Eid Al Fitr
• Eid Al Adha
• UAE National Day
• New Year’s Day

During these holidays, employees are usually allowed to take a paid day off.

But in case employees have to work on these days, they should be given one of the following benefits:

Option 1 – Compensatory Leave

Another day, an employee gets an off day with pay.

Option 2 – Additional Pay

The employee gets 150 per cent of his/her normal hourly salary.

Calculate Your Overtime Quickly

Spending time to wonder how much more you will get to earn by working during the UAE public holiday? Calculate your overtime in our free Overtime Calculator.

Only key in your basic pay and time taken, and watch your total overtime pay appear immediately. Clearly stated calculations without any offensive formulas–only expenses and advantages according to the labour legislation of the UAE.

Maximum Overtime Allowed in the UAE

The labour law also restricts the number of overtime hours an employee shall work.

In most cases:

• Workers are not supposed to work more than two extra hours a day.

This regulation safeguards employees against getting too much work and aims to achieve a healthy work-life balance.

Tips for Employees to Track Overtime

There are not very many straightforward steps that employees can follow to make sure that their overtime is paid.

Helpful tips include:

• Monitor the time spent in the workplace.
• Review your monthly salary slip carefully
• Confirm overtime policy with HR
• Store overtime authorizations.

The steps are relevant as they allow employees to make sure that their compensation is correct in case of overtime and avoid conflicts.

Frequently Asked Questions

What is the amount of overtime remuneration of employees in the UAE?

Workers exceeding the normal working hours are normally paid their regular salary with a percentage added based on the type of overtime.

Is overtime mandatory in the UAE?

There are circumstances where overtime would be needed, and it is the duty of the employer to remunerate the employees as per the labour law regulations.

Do you pay on an overtime basis or on a total salary?

Basic salary is normally used in calculating overtime.

Is it possible to reject the overtime work?

This can be in cases where employees decline to work overtime unless they are needed to do it due to the nature of the work.

Read Also: Check UAE Labour Card Online (2026 Guide Updated)

Final Thoughts

The UAE has definite rules in overtime calculation and the labour law that is aimed at safeguarding the employees and providing them with decent pay. In cases where the overtime is to be carried on a normal working day, on a night, or during a public holiday, the employees have the right to overtime allowance as stipulated by law.

Knowledge of the computation of overtime will enable the workers to check their pay, defend their rights, and ensure that they get their overtime pay.