UAE Overtime Calculation: Rates, Formula, Calculator

How to read your overtime calculator result

The calculator shows three figures: your daily wage, your basic hourly wage, and your total overtime pay. It uses the basic salary method set in Article 19 of Federal Decree-Law No. 33 of 2021. Housing, transport, and all other allowances are left out.

Regular extra hours apply the 125 percent rate. Night work and rest days apply 150 percent. Public holiday work follows a separate rule. You get a substitute rest day, or your normal day’s wage plus at least 50 percent of basic wage. The Ramadan toggle shifts your overtime threshold from 8 hours to 6 hours.

Use the result as a clear starting point. Then read the guide below for the legal rates, Ramadan rules, rest day options, and how to claim unpaid overtime.

Written by: Noura Al-Qaseer – Senior HR Manager & UAE Labour Law Advisor (20+ years’ UAE private-sector HR experience)
Legally reviewed by: Adv. Marwan A. Hamid – UAE Labour Law Advocate
Last updated: August 2026 | Next review: December 2026

Overtime pay example: how unpaid hours add up

Unpaid overtime can cost UAE employees thousands of dirhams a year when hours go unclaimed. Rohan works as a logistics coordinator in Dubai. His basic salary is AED 7,200. During every month-end close, he stayed past midnight to clear shipments. His manager called those late hours part of the job. Rohan was never paid for them.

Over one year, he worked around 144 overtime hours. Most fell between 10 PM and 4 AM. At the correct night rate, his employer owed him close to AED 6,480. He never knew the law was on his side.

Cases like Rohan’s are common across the private sector. Most workers never run the numbers. This guide covers overtime calculation in the UAE for 2026. You will find the exact rates, the formula, real AED examples, and how to claim what you are owed.

How is overtime calculated in the UAE?

Overtime in the UAE is paid on your basic salary, not your total package including allowances. This rule sits in Article 19 of Federal Decree-Law No. 33 of 2021. You take your basic hourly wage, then apply a legal multiplier of 125 percent or 150 percent depending on when you worked the extra hours.

The core formula is short. Overtime pay equals your basic hourly wage, times the rate, times the hours worked.

Your basic hourly wage comes from one calculation. Divide your basic monthly salary by 30 days, then by 8 hours. The multiplier then depends on when you worked.

Regular extra hours pay 125 percent. Night work and rest days pay 150 percent. Public holidays follow a different formula under Article 28. See the table below for the exact breakdown.

IMPORTANT: Housing, transport, and other allowances are excluded by law. Not sure your pay is fair? See what your job pays in Dubai. See our gratuity vs CTC guide to understand why basic salary drives so many UAE entitlements.

For the full legal text, you can read Federal Decree-Law No. 33 of 2021 on the UAE Legislation portal. Our UAE Labour Law 2026 guide also explains working hours in plain terms.

What counts as overtime hours in the UAE?

Overtime is any approved work beyond your normal daily or weekly hours. Your employer must request or approve it first. The work must pass 8 hours a day or 48 hours a week under Article 19 of Federal Decree-Law No. 33 of 2021. Extra time you choose to stay without approval is harder to claim.

Does on-call or standby time count?

On-call rules depend on your contract. If you must stay at work and remain available, that time can count. If you are free to leave and rarely called in, it often does not. Always check what your contract says about standby hours.

Do training and meetings after hours count?

Required training and meetings count as work time. If they push you past your daily limit, overtime rates apply. Voluntary sessions you join by choice usually do not count. Keep a record of these hours like any other overtime.

Who qualifies for overtime pay in the UAE?

Most private sector employees on a registered MOHRE contract qualify for overtime pay in the UAE. Your eligibility depends on your job role, your sector, and whether you work beyond 8 hours a day or 48 hours a week. Senior managers and a few defined categories sit outside these rules.

Overtime rules for private sector employees

You are generally entitled to overtime if you meet four simple tests. You work in the private sector. You hold a registered MOHRE contract. You are not in senior management. You work beyond 8 hours a day or 48 hours a week.

This covers most clerical, technical, retail, and operational staff. Your nationality does not change it. Both UAE nationals and expatriates are covered.

NOTE: Your UAE labour card confirms your registered status. Your contract type does not affect your overtime rights.

Which roles are exempt from overtime

Some senior roles are exempt under Article 15(4) of the Executive Regulations. These are people with real authority over the business.

Exempt roles usually include senior management and board-level staff. They include people who can hire and dismiss others. They also include certain roles defined as special in nature by MOHRE.

The test is real authority, not a job title. Calling someone a manager does not remove their overtime rights. The role must carry genuine decision-making power.

Part-time and flexible workers

Part-time and flexible workers should check their written contract carefully. Extra hours beyond the agreed schedule require clear approval from your employer. If the extra work pushes you past the normal legal working hours for a full-time employee, confirm with HR or MOHRE how overtime rates apply to your specific arrangement.

WARNING: Domestic workers fall under a separate law, Federal Decree-Law No. 9 of 2022. Their hours and rest rules differ from the private sector. See our domestic worker calculator for that category.

What are the UAE prevailing overtime rates?

UAE overtime (OT) rates run from 125 percent to 150 percent of your basic hourly wage. The rate depends on the day and the time you work. The table below covers every type of overtime.

These are legal minimums. Your employer can pay above them, but never below.

PRO TIP: The night premium does not cover shift workers. If your job runs on a fixed shift system, the night uplift does not apply to you. This exclusion sits in Article 19.

How to calculate your overtime pay step by step

You work out your OT pay in three steps. Find your hourly rate, apply the multiplier, then multiply by the hours. Calculating overtime is simple once you have the right base.

Step 1: Find your basic hourly wage

Divide your basic monthly salary by 30 days. Then divide that by 8 hours. Take a basic salary of AED 6,000. Divide by 30, which gives AED 200 a day. Divide by 8, which gives AED 25 an hour.

Step 2: Apply the correct rate

Pick the multiplier for the time you worked. Use 1.25 for regular weekday overtime. Use 1.50 for night hours, rest days, and public holidays.

Step 3: Multiply by your overtime hours

Multiply the hourly wage, the rate, and the hours together. At AED 25 an hour, two regular overtime hours pay AED 62.50. That comes from 25 times 1.25 times 2.

The UAE overtime calculation formula

The UAE overtime calculation formula is short. Overtime pay equals basic hourly wage times the rate times the hours. Basic hourly wage equals basic salary divided by 30, then by 8.

Try a quick example. A basic salary of AED 9,000 gives AED 37.50 an hour. Three night hours at 1.50 pay AED 168.75.

NOTE: The law fixes the month at 30 days. You always divide by 30, even in February. Our methodology page explains why we keep this base fixed.

Overtime calculation examples with real AED figures

The first example set uses a basic salary of AED 6,000, so the hourly rate is AED 25. The second uses AED 10,000, where the hourly rate is AED 41.67. This is where most payroll errors hide.

Example A: basic salary AED 6,000

Example B: basic salary AED 10,000

Look at Rohan again. His basic was AED 7,200, so his hourly rate was AED 30. His night rate was AED 45. Across 144 night hours, his unpaid overtime reached AED 6,480.

How does overtime work on rest days and public holidays?

Rest days and public holidays follow two different rules under UAE Labour Law. Many employers wrongly treat them the same way, which leads to underpayment. For a rest day, you get a substitute day off or 150 percent pay. For a public holiday, you get a substitute day or your normal wage plus at least 50 percent extra.

Working your weekly rest day

If you work your contractual rest day, you get one of two things. You receive a substitute rest day, or you receive 150 percent pay for those hours. Article 28 sets out two ways to compensate for holiday work. It does not say who picks. In practice, the employer usually decides. Check your contract, as it may give you a better term.

Working an official public holiday

Public holidays sit under Article 28, not Article 19. The compensation is structured a little differently.

Your employer must give you a substitute rest day for each holiday worked. The other option is to pay your normal day’s wage for that day. They add at least 50 percent of your basic wage on top. You and your employer agree which path applies.

Taking time off in lieu instead of pay

For rest day and public holiday work, you can take time off in lieu rather than cash. Time off in lieu means a paid day away from work to replace the day you worked. Both you and your employer must agree to it.

This option suits workers who value rest over extra pay. It does not apply to ordinary weekday overtime. Weekday overtime is paid in cash at 125 percent.

WARNING: Paying 125 percent for holiday or night work is a common breach. The correct floor is 150 percent. Underpayment here often goes unnoticed for months.

How is overtime calculated during Ramadan?

During Ramadan, the working day drops by two hours to six hours under MOHRE rules. This reduction applies to all employees, not only Muslim staff, across the private sector. So overtime starts after the sixth hour, not the eighth, and normal overtime rates still apply on top for the whole month.

Your overtime window changes for the whole month. Work the seventh hour on a normal Ramadan day, and the 125 percent rate applies. Night and rest day rules still stack on top.

Many employers keep the same long hours through Ramadan. If they do, those extra hours are overtime. They must pay the correct rate for them.

NOTE: The two-hour Ramadan reduction is applied by MOHRE under the UAE Labour Law and its executive regulations. It is a legal entitlement, not a company favour.

Do special sectors have different overtime rules?

Some sectors can run a 9-hour working day instead of the standard 8-hour day. This applies to trade, hotels, cafeterias, and security roles, with MOHRE approval required. Overtime in these sectors starts only after the ninth hour, though the 125 and 150 percent pay rates stay the same as the standard system.

In those sectors, overtime starts after the ninth hour, not the eighth. The pay rates do not change. You still earn 125 percent on regular days and 150 percent for nights, rest days, and holidays.

This matters for hospitality and security staff most. Always check which daily limit applies to your role. The 9-hour rule is the exception, not the standard.

Do overtime rules apply in free zones, DIFC and ADGM?

Most UAE free zones follow the federal overtime rules under Federal Decree-Law No. 33 of 2021, including JAFZA and DMCC. Two financial free zones do not follow this law. DIFC and ADGM run their own separate employment regulations, so their overtime rates and rules can differ from the standard 125 and 150 percent structure.

Mainland and standard free zones

Mainland employers follow Federal Decree-Law No. 33 of 2021 in full. Standard free zones like JAFZA and DMCC follow the same federal rates. If you work in JAFZA, your overtime rates match the table above.

DIFC and ADGM employees

DIFC and ADGM are financial free zones with their own rules. The federal labour law does not apply inside them. Their own employment regulations handle working hours and overtime.

So you cannot assume the 125 and 150 percent rates apply there. Check your DIFC or ADGM contract and the relevant zone regulations. The structure and rates can differ.

IMPORTANT: Always confirm your jurisdiction before relying on any overtime figure. Verify with your employer or HR if you are unsure which law covers you.

What are the legal limits on UAE overtime?

UAE law limits overtime to two hours per day under Article 19 of Federal Decree-Law No. 33 of 2021. Total working hours also cannot pass 144 hours over any rolling three-week period. The only exception to the daily limit is a genuine emergency that risks serious loss or damage to property.

The two-hour daily limit comes from Article 19. Your employer can exceed it only to prevent serious loss or a major accident. Outside that, a normal day should not pass ten hours in total.

Overtime also has a rolling cap. Total working hours cannot exceed 144 hours over any three weeks. This sits in Article 19 of Federal Decree-Law No. 33 of 2021, the same article as the daily limit.

Overtime also starts only after 8 hours on a standard day. You can refuse overtime in many cases too. For full-time workers, your employer may instruct overtime within the legal limits. The two-hour daily cap applies except in genuine emergencies under Article 19. You can read the official summary of working hours and overtime on the UAE Government portal.

What to do if your employer does not pay overtime

If your employer refuses to pay overtime, you can file a MOHRE complaint. You have two years from the date your employment ends. This limit sits in Article 54 of Federal Decree-Law No. 33 of 2021, as amended.

Start by raising it in writing with HR. Keep that record. If nothing changes, move to a formal complaint. Unpaid OT is a clear breach of the law.

1. Gather your contract showing your basic salary.
2. Collect proof of the overtime hours, such as emails or system logs.
3. Calculate the amount owed using the rates above.
4. Raise your overtime claim in writing with your employer first.
5. File with MOHRE if it stays unpaid.

MOHRE reviews the complaint and seeks a settlement. For claims not exceeding AED 50,000, MOHRE may issue an enforceable decision. The Ministry aims to act within 14 days. Larger or unresolved claims move to the Labour Court.

Common overtime mistakes and how to fix them

Payroll teams and employees often make the same overtime errors in the UAE. Wrong pay bases, wrong rates, and missing approval records cause disputes. The table below lists the most common mistakes and how to correct each one.

PRO TIP: Your overtime pay must show in the Wage Protection System (WPS). Missing or wrong wage data can trigger fines for the employer. A clean WPS record also strengthens your claim.

Is overtime included in your UAE gratuity?

Overtime is not included in your gratuity calculation. End-of-service gratuity is based on your last basic salary alone, under Article 51 of Federal Decree-Law No. 33 of 2021. Allowances, bonuses, and any overtime pay you earned during your employment are all left out of the final gratuity figure, no matter how much overtime you worked each month.

So a year of heavy overtime does not raise your gratuity. The two are calculated on different bases. Overtime is paid monthly, gratuity is paid at the end.

You can check your end-of-service figure with our UAE Gratuity Calculator. It uses your basic salary, the same base the law sets for overtime.

The bottom line on UAE overtime

Overtime calculation in the UAE rests on one base: your basic salary. Apply 125 percent for regular hours and 150 percent for nights, rest days, and holidays. Track your hours, keep written proof, and check the math each month. If the numbers fall short, you have two years to act through MOHRE.