UAE Overtime Calculator

The Complete Guide to UAE Overtime Pay Rules (2026)

Working beyond your standard contractual hours is a common reality in many industries across the United Arab Emirates. However, the UAE Labour Law explicitly protects employees from uncompensated exploitation. According to Federal Decree Law No. 33 of 2021, if an employer asks you to work extra hours, they are legally mandated to compensate you with Overtime Pay.

This 1,200+ word comprehensive guide explains exactly how overtime is defined, how to mathematically calculate your hourly wage from your monthly basic salary, the legal maximum limits on overtime hours, and exactly who is (and isn't) eligible for overtime compensation in 2026. For related financial planning, consider using our Salary Slip Generator to see how overtime affects your monthly statement.

1. Defining Normal Working Hours in the UAE

Before you can calculate overtime, you must understand what constitutes "normal" working hours. Overtime is strictly defined as any time worked beyond these standard legal limits.

• Standard Limits: The maximum normal working hours for adult employees in the private sector is strictly 8 hours per day or 48 hours per week over a 6-day workweek. For a 5-day workweek, it remains capped at 48 hours.
• Commute Time: The time spent commuting from your residence to the workplace does not count towards your working hours, unless explicitly stated otherwise by the Ministry.
• Rest Breaks: Employees are legally entitled to a rest break of at least 1 hour if they work 5 consecutive hours. This rest break does not count towards the 8 working hours.

2. Step-by-Step: The Overtime Math Formula

Overtime is calculated strictly using your Basic Salary, not your gross salary (which includes allowances like housing or transport). Here is how the math breaks down step-by-step.

Step A: Finding Your Hourly Rate

Because you are paid a monthly basic salary, you first need to convert that into an hourly rate. The standard UAE formula used by MOHRE and corporate HR departments is:

• Annual Basic Salary: Monthly Basic Salary × 12
• Annual Working Hours: 52 weeks × 48 hours = 2,496 hours
• Hourly Wage: Annual Basic Salary ÷ 2,496

Example: If your monthly basic salary is AED 5,000:

• Annual Basic = 5,000 × 12 = AED 60,000
• Hourly Wage = 60,000 ÷ 2,496 = AED 24.04 per hour

Step B: The 125% Rate (Normal Days)

If you are asked to stay late after your standard 8-hour shift on a regular working day (e.g., Monday to Friday), you are entitled to your basic hourly wage plus an additional 25%.

Formula: Hourly Wage × 1.25

Continuing the example: AED 24.04 × 1.25 = AED 30.05 per overtime hour.

Step C: The 150% Rate (Rest Days and Night Shifts)

The law applies a higher premium of 150% (time and a half) under three specific conditions:

• Weekly Rest Day: If you work on your designated weekend off (e.g., Sunday).
• Public Holidays: If you work on an official government-declared public holiday (like Eid or National Day).
• Night Shifts: Any overtime hours worked between 10:00 PM and 4:00 AM (except for shift workers).

Formula: Hourly Wage × 1.50

Continuing the example: AED 24.04 × 1.50 = AED 36.06 per overtime hour.

Comparison Table: Resignation vs Termination Payout

To visually understand the difference between resigning and being terminated on a standard unlimited contract, refer to this comparison table based on years of service.

3. Worked Calculation Examples: Overtime Pay

To clarify the mathematics, let us review two common scenarios involving different types of overtime work.

4. The Legal Limits on Overtime Work

To prevent burnout and safeguard occupational health, employers cannot simply force employees to work unlimited overtime, even if they pay for it. The UAE Labour Law institutes strict caps:

• Daily Maximum: An employee may not work more than 2 hours of overtime per day. This means the absolute maximum workday is 10 hours.
• Weekly Maximum: The total working hours (standard + overtime) cannot exceed 144 hours within any 3-week period.
• Exceptions: The only legal exception to these caps is if the overtime is urgently required to prevent an imminent catastrophic failure, a serious accident, or massive financial loss to the company.

4. Who is Exempt from Overtime Pay?

A critical source of conflict in the UAE workplace is determining who actually qualifies for overtime. Under Cabinet Resolution No. 1 of 2022, not all employees are eligible. The following categories are legally exempt from overtime pay:

Managerial and Supervisory Roles

Employees holding senior executive, managerial, or supervisory positions are generally excluded from overtime calculations. The legal threshold is whether the employee possesses "the authority of the employer over other workers." If you have the power to hire, fire, approve leave, or set schedules for a team, the government assumes your higher monthly salary compensates for the expectation of longer hours.

Field Workers and Sea Crews

Workers whose jobs require them to be at sea (like ship crews) or field workers whose technical nature of work does not allow for a fixed schedule are also generally exempt, subject to specific industry regulations.

5. Working on Public Holidays: Compensatory Leave vs. Pay

Public holidays in the UAE are fully paid days off. If business requirements mandate that you must work on a declared holiday, your employer has two legal options for compensating you:

1. Option 1 (Pay + Leave): Give you another compensatory day off in lieu of the holiday worked, PLUS pay you your standard daily wage plus an additional 50% basic salary bonus for that day.
2. Option 2 (Pay Only): If they cannot give you a compensatory day off, they must pay you your standard daily wage PLUS an additional 150% basic salary bonus for that day.

You can cross-reference how holiday pay is tracked in official financial records by viewing a sample through our Salary Slip Generator.

6. What to Do If Your Employer Refuses to Pay

If your employer expects you to regularly work 10-hour days without paying the 125% rate, they are violating federal law. Here is the recommended course of action:

• Document Everything: Keep written proof of the hours worked. This includes emails from your manager asking you to stay late, timesheet records, biometric punch-in/out data, or WhatsApp messages.
• Internal HR Resolution: Submit a formal, polite written request to your HR department citing Article 19 of Federal Decree Law No. 33 of 2021 regarding overtime compensation.
• MOHRE Complaint: If the company refuses, you have the right to file a grievance with the Ministry of Human Resources and Emiratisation (MOHRE). Because overtime is a mathematical entitlement written into law, MOHRE is highly effective at forcing employers to settle unpaid overtime dues, provided the employee has documented proof.

Official Legal References

This calculator and guide are strictly aligned with the latest UAE labour regulations. For official verification or to file a formal dispute, refer to the following sources:

• Official MOHRE Portal
• Article 19 of Federal Decree Law No. 33 of 2021: Governs all regulations concerning overtime hours and compensation rates.
• Article 15 of Cabinet Resolution No. 1 of 2022: Details the specific exemptions for managerial and supervisory positions.