How to calculate overtime as per UAE Labour Law?

Overtime calculation as per UAE Labour Law

Working hours in UAE is governed by UAE LABOUR LAW. Overtime is calculated on the basis of Gross Salary. (Read MOL FAQ.)(This was pointed out by one of my readers Anuj Alex) There are many jobs which often require an employee to work overtime whether an employee is entitled to overtime or not. 

It always depends on the role of the employee and the working hours of the company has in place. Each employee should be aware of the normal working hours and how many additional hours an employee asked to work.

overtime in dubai

The overtime provision will not be applicable to the following positions:

  • Senior Positions;
  • Administrative Supervisory Roles;
  • Crews of naval ships and Marine employees.

As per UAE Labour Law an employee’s normal working day should not exceed 8 hours [update] OR 48 hours per per  week.  An employer is also able to request an employee to perform up to 2 hours of additional work, which will be treated as overtime. However, the working hours may be increased to nine hours per day in case of persons employed in trade, hotels , cafeterias guards.

Following hours are not included in computing over time:

  • The time travelling to and from work.
  • Resting and food break.

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Computation/Calculation of Overtime:

Under UAE Labour Law, Article 67, Article 68, Article 68, Article 69, Article 70, Article 71 and Article 72 cover how to calculate overtime. Overtime in all cases is calculated based on Gross Salary. This is clearly mentioned in the FAQ section of MOL website. You can read MOL Faq in this link: MOL FAQ Link

over time pay

Computation of Normal Overtime:

  • If the nature of the job requires overtime, the employees shall be paid overtime and the payment shall be equivalent to the wage paid for the ordinary working hours plus and increase of not less than 25% of his wage for the overtime period.

Example:

  1. Gross Salary X 12/365= per day salary
  2. Per day Salary/8=Per hour salary
  3. Overtime amount is =Number of overtime hours X Per hour salary X 1.25
  • However, if the employee’s overtime fall between the hours  9.00 PM to 4.00 AM the employee will be entitled to an overtime equivalent to the normal working hours plus an increase of not less than 50% of his wage for the overtime  period.

Example:

  1. Gross Salary X 12/365= per day salary
  2. Per day Salary/8=Per hour salary
  3. Overtime amount is =Number of overtime hours X Per hour salary X 1.5

—————————————————————————————————————————————-

Computation of Friday Overtime:

  • If the circumstances require the employee to work on a Friday, he must be granted either another day off (compensatory off) or receive his basic salary plus an additional 50 % of his remuneration (i.e, basic salary plus allowances). However, employee cannot be asked to work more than two consecutive Friday unless they are employed on a daily wage basis.

Example:

  1. Gross Salary X 12/365= per day salary
  2. Per day Salary/8=Per hour salary
  3. Overtime amount is =No of overtime hours X Per hour salary X 1.5 or An additional day off.

—————————————————————————————————————————————-

Computation of overtime during Public holiday:

As per the Article 81 of UAE Labour Law, where the circumstances of the work make it necessary for  a worker to work on public holidays or rest day in respect of which he/she is entitled to full or partial pay, he shall be granted compensatory leave in respect of such days, together with a bonus equal to 50 per cent of his remuneration. If he is not compensated for such days by leave, his employer shall pay him a bonus equal to 150 percent of his basic remuneration in respect of the days worked.
Example:
  1. Gross Salary/30= per day salary
  2. Per day Salary/8=per hour salary
  3. Overtime= Number of overtime hours X Per hour salary X 1.5 in addition to one day compensatory off
  • 100 percent of normal daily remuneration basic salary plus allowances plus 150 per cent of basic salary.

OR

Example:

  • Gross Salary/30= per day salary
  • Per day Salary/8=per hour salary
    Overtime= Number of overtime hours X Per hour salary X 2.5

Calculation of overtime is very easy and is clearly provided in UAE Labour law.

About Deepak 505 Articles
Deepak is a passionate blogger with interests in bitcoin, online marketing, and writing.
  • If an employee is working 40 hours a Week (Sunday – Thursday), will any extra hours put during the working days or saturday be considered as overtime?

    You have mentioned that as per the UAE labour law “an employee’s normal working day should not exceed 8 hours and 48 hours per per week.”

    where as in the labour law it is mentioned “an employee’s normal working day should not exceed 8 hours or 48 hours per per week”

      • I have read the article and that is why I had posted the question.

        If an employee is working 40 hours a Week (Sunday – Thursday), will any extra hours put during the working days or Saturday be considered as overtime?

        You have mentioned that as per the UAE labour law “an employee’s normal working day should not exceed 8 hours and 48 hours per per week.” where as in the UAE Labour law the word “or” is used “…8 hours or 48 hours per per week…” Please clarify.

  • I am on a senior position. My company wants me to work 12hrs daily, 7 days a week. And as per labor law, their is no overtime to be paid to senior positions, and my company is taking full advantage of this law. What can I do ?

  • Hi Deepak,

    With reference to your OT calculation as per below:-

    Computation of Public holiday Over Time:

    Where an employee works on UAE Public Holidays declared for private sector, the employer can elect one of the following payment structures:

    1st Example:
    Basic Salary X 12/365= per day salary
    Per day Salary/8=Per hour salary
    Overtime is =No of overtime hours X Per hour salary X 1.5 Or An Additional day off.

    Kindly reconfirm the below mention in ur structure 1st Example:-
    a) No of overtime hours X Per hour salary X 1.5 Or An Additional day off” – IS THAT CORRECT?
    OR
    b) No of overtime hours X Per hour salary X 1.5 PLUS An Additional day off” – IS THIS CORRECT?

    Secondly, Is this hourly OT calculation as per basic salary or including allowance because you have mention both as per below:-

    100 per cent of normal remuneration (basic salary plus allowances)
    BUT in ur examples you taken only basic as per below:-
    Basic Salary X 12/365= per day salary (Is this basic or plus allowance)

    Pl clarify the above two points..

    Tnx & Rgds..
    Renji

  • hi,my name is hari i am woking in gas company, in my company we are coming to office 6am and we are reaching the site at 8am and then we are stoping the work at 4pm and reaching the room at 8pm but in our company giving only (2 hours overtime) only .according to uae law workers want to work for 8 hours ,but we are working for 14hours but we are getting only 2hours .they are also cutting the time for travelling also and if we are working in friday 6hours they are giving only 6hours only .tell me whether these calculations are correct reply me please

  • I am working marine company salary 5000/-
    1.I am working 8 am to 3 am {19 h } what is my OT?
    company asking must come 8 am office?
    2 Friday work 8 am to 8 pm
    They give 100/- only over time starting after 9 pm only
    pls give correct over time?

  • It is mentioned in the above Article:
    However, the working hours may be increased to nine hours per day in case of persons employed in trade, hotels , cafeterias guards.
    Which are covered under”Trade”? Does a firm or LLC having General Trading Licence 9 hours working will be applicable?
    Kindly clarify. Thanks
    Krishnan

  • As per UAE law, how to calculate daily salary? If total salary is aed 4000, then divided by 30 and multiply by number days worked? Or monthly salary of aed 4000 multiply with 12 months and divided by 365 and multiply with number of days worked? Please reply at the earliest
    Thanks & Regards
    Jagannath
    ([email protected])

  • Hi I was ask by my employer to work on friday and saturday and both days are my days off i work from sunday to thursday from 9:00 am to 6:30 pm my salary for month is 2500 how should i compute this for over time cause both days are my day off for me??

      • Good Morning, Hope you are doing fine.

        Can you please clear the following confusion.
        If an employee did over time like 45 mints then does he entitled to get 1 hour Overtime. Vice versa, if he worked OT 20 mint extra then how much OT he will be entitled.
        Please clear this in with reference to UAE labour law.

  • What is the normal hrs of work for a office boy in UAE, As i m working from morning 7 to 6 pm with 1 hr break how extra hrs i will get

  • I wanted to know what is the pay, during the annual vacation. is it the pay with all allowances for the month, or is it just basic plus HRA.

  • Sir, i am working in a driving institute as a customer service representative and my timing is from morning 8 AM to 8 PM with one hour break and also my colleagues working 14 hours straight duties with same package and also one friday off and the next friday On mean only two friday off in a month but my sallary is 2500 without over time

    • You have the right to claim overtime. Better to speak to you manager and explain him your work sitution

  • Hi deepak.
    I work at airport for a private airline compamy having free zone visa.
    Due outstation we are limited number of staff.
    I work 9 hours daily and get 2 day offs.
    During flight delays or cancellation i work till the flight departs most of the time working 18 to 20 hours.
    Also i work on all public holidays due shortage of staff and not componsated.
    Is there any provision for maximum number of working hours a day.
    Can my company refuse my overtime legally.

    • Shakeer,
      I think the nature of your work entails that you work overtime. This is allowed under the law.
      It is better to request your employer to look into your situation and grant extra pay.

  • My company hired a driver salary 4000Dirham. According to contract, his working time was 48 hours a week, but acturally, he followed up our staff time schedule working only 35 hours a week(5 days) . more than 80% working time he sitted in the office. but sometimes we need him to do overtime job. My question is , he works only 35 hours a week, if he does overtime work, is his claim for overtime salary reasonable?

    • William,
      This overtime tracking is upto companies.
      I am not sure whether labour law mentions anything like this.

  • Sir,

    For Overtime Calculation, If one employee works full night as overtime and after his normal rest of six or eight hours and join for duty at evening and again work full night until next day morning 8 am. In this case how we will calculate the OT hours…i think it is calculated as – the normal working hours (8 hrs) deducted and the balance will treat as overtime hours. can you please let me know the actual overtime hours in this case.

  • Hi,

    I was on annual leave from 6th October to 6th November which was on Thursday i Join the office on Sunday because friday and saturday is off
    so for coming month i will get salary from 7th which was friday or from 9th which was Sunday (But i have submit the leave application till 6th November)

    kindly advice
    Ali

  • Hi Deepak ,

    Person From MOL Told me in UAE calculation of monthly salary is 30 days every month but From Last 3 years I am using formula salary X 12/365=Per day Salary.

    If Employee is present full month complete salary is given but in case of any deduction I am using formula salary X 12 /365 =One day salary X No. Of Days Absent.

    so please Confirm its 360 days or 365 days . Or I am using correct method or not.

    What is UAE Labour rule to calculate Monthly salary.

  • Mr. Deepak i am working in a company as a contractor and i worked i year and my contract period is 2 year so can i change my visa to the current company in which i am working or if they offer me 5000 grass salary can i change

  • Dear Deepak,

    Can you please confirm if a person who works for service (e.g. like cleaning worker, hotel) is entitled for wages for public holidays?

    Is there an official website I can show to my employer that I am entitled to get paid as per the UAE Labour Law.

    • April,
      Yes.
      Read the UAE Labour law. This is called overtime.
      Unless you have signed the contract that says you are not entitled for extra pay on holidays.

  • hai deepak
    Iam a doctor from sharjah practicing in a hospital as GP. I am supposed to take a night duty from 11 pm on 31.12.14 to 7am 1.1.15 which is a public holiday. please let me know if i am eligible for a compensatory off for that duty……
    Please help….

  • Hello. Good Evening, I need your guide line i am over stay here in UAE Dubai. my visa was cancelled on 17 June and i suppose to leave or change status before 17 July. My company didn’t pay me any single AED. now what i have to please guide me. I am searching job even just because of Over stay i am not getting any offers as well.

    • Eric,
      This is not good.
      It is better to make your status legal as this has considerable fines already.

  • Dear Deepak

    please advice me I am working two hour overtime so how it should calculated

    for eg if my salary is 1000 dhrams 25% from the basic salary for per hour or per two hours and how its calculated for a month ( 26 days per month work)

    Thank you very much in advance

    Suresh

  • Hi. I just want to ask, if my employer doesn’t like to give for me day off, what should I do? I hope you can help or give me an advise. Thank you.

  • hi.Its my first job in UAE.I am just 2 months here in an employment visa.Now am on probation period. If I request to cancel my visa,then will I get labour ban automatically….if yes,how can I lift the ban?

  • Hi Deepak,

    My job requires me to frequently travel outside UAE for company work. Most of the cases my flights are on a weekend (Fri or Sat). Am I supposed to receive any Overtime compensation for this travel time spent on a weekend?

    Thanks,
    Zahid

    • Zahid,
      In your contract you would have agreed that the job requires you to travel.
      In such case, you would not be eligible for overtime as this is part of your work.
      On lighter note, Bro, I would love a job that gives me a chance to travel!

  • I signed a contract in one architectural consulting company here in abu dhabi which states that i will be entitled to work 40 hours per week…But in reality, I am sometimes working 51 hours per week and the company will consider 3 hours overtime only instead of 11 hours since according to them, the uae law states that 48 hours is the legal regular working hours…I don’t think it is fair!!!
    Then what will happen to my 8 extra hours (40 in my contract but 48 as per uae law).

    Is that correct?

  • hi deepak ..am 1year now in my company just want to ask about annual leave. in my contract my basic salary is 1500 accommodation is 2000 and transportation is 300 total amount 3800..how much the annual payment i will take from my company. ?i confused bcoz when i went to labor and ask about that they said it will only base from basic salary only but now just i read it will be basic plus other allowance which one its true..which one i need to based? plz thank u

    • Almira,
      This will depend on company whether they are providing annual air ticket directly or air fare as per their policy.
      Companies have different ways to calculate the air fare allowance and is not guided by UAE Labour Law.

  • I got salary regularly. .
    but I want to claim for overtime I worked for past 2 years. As per law weekly working hours is 48, but I worked 77 hours weekly.
    so I can claim for past 2 years ?

  • I would like to know about the hours a day worked it mentions 8 hours or 48 hours a week. You get a lunch break if you work over 5 hours. We start at 9 and finish at 6, which is 9 hours a day. We work 5 days which gives us 45 hours. Do I deduct the lunch break from this giving me 8 hours a day or does it remain at 9 hours regardless. Reason I ask, our CEO is taking this into consideration when finalizing Ramadan hours and says 48 hour week is applicable to people working 6 days a week so the reduced Ramadan hours are not applicable to us. Thanks

    • Jasmine,
      As per the DIFC Employment Law, during Ramadan, reduced hours are applicable to only fasting(muslim) employees. It is reduced by 2 hours of the normal working hours.
      Whereas working hours is 48 hours per week, it could be fit into any number of days(max 7).
      The 8 hour period does not include lunch break and you can have a break of 1 hour after 6 hours of continuous work.

  • Hi Deepak,

    Does this computation apply even if you are working on a 12 hour shift (48 hrs per week) like nurses in hospitals? Do they also get paid Friday and night OT rate?

    Thank you

  • hi deepak,
    i am working in construction site,

    My company is paying overtime as per law. so no problem on that.

    |If i am willing to work 14 to 16 hours per day, i can work or not? is there any law to restrict the hours?? pls advise.

      • As per UAE Labour Law you are not supposed to work more than 2 hrs per day. If they find out, you will be penalized as it is considered as violation of human rights.

  • Dear Deepak,

    I need you suggestion, I working in garment factory as coordinator company is asking all employees to work 8:30 am to 7:30pm which is our regular shift and sometimes for OT we need to work till 10:30pm is it legal as per law.

    I have checked with Hr and got the answer that this is management decision they can’t do anything. What should we do.

    Thanks

  • Dear Deepak,

    Thanks for your reply but can you elaborate more what is the mean as per company policy and UAE labour law. As per law work should not exceed 48 hours if exceeding than overtime should be paid whereas company is asking for 60hrs regular time plus OT.Is there anyway to put complaint agianst this without revealing my name as everyone willing to complaint but no one wants to give their name.

    Looking forward to hear from you.

    Thanks.

      • my restaurant open 12 hours so my staff working 9 hours as per labor and some of them they take 2 hours break and other take 3 hours break as split chift to complete the 12 hours duties my question is how i calculate the over time

  • I’m working as a security guard for the last 1 year & 9 months. I have unlimited contract. Now, our company decided to terminate more than 95 staff due to not renew a client. Even they don’t have other any clients also. So, will I get my leave salary, gratuity, ticket & 3 months compensation? Please let me know the correct answer. Thank You

    • Mohamed,
      I am not sure about the 3 month compensation but other facilities, you will get.

  • Hi.

    Can you give me some clarification.
    For some companies specially in the health industry free transportation is included.
    Is there any minimum or maximum hours for the transportation.
    Example. we have 12 hrs work a day but we are travelling 3-4hours a day as well which is not included in the 12 hours. Should the company pay for that number of hours?

    Thanks

  • Good Morning,

    I have some questions regarding my contract legality and overtime payment.

    I’m a Portuguese citizen working in Angola for an Angolan company that pays me through an UAE company with whom I have a contract that states:

    “1.21. The normal working hours shall be 54 (fifty four) hours per week, beginning on Monday and ending on Saturday.”
    “1.22. The work schedule starts at 08 am and ending at 18 pm hours, and the worker is entitled to a daily rest break and meal of a duration not less than one nor more than two hours.”

    “1.32. Any dispute or controversy on this Agreement will be resolved by the laws of United Arab Emirates.”

    I work in rotation, 28 days on / 28 days off, and my schedule is from Monday to Sunday ( 7 days per week) from 6am until 6pm including 1,5 hour lunch break ( 10,5 hours day).

    I have some questions regarding my contract legality, if its legal or not, and overtime payment rights, if any.

    Could someone please answer those questions or advise me were to get them?
    Thank you very much.
    Nelson.

  • Hi Deepak,

    First of all appreciating your efforts and your patience. Deepak i have the following doubts please clarify
    1) I joined a Trading company in June 2015 with 2 years unlimited contract. My Manager said he can terminate any employee within 6 month without intimating or without signature of the employee. Is it right?.
    2) If an employer wants to terminate an employee whats the procedure?
    3)If an employee is terminated ( not for any illegal or criminal activities),whether he is entitled for any payments ? ( for eg: Incentives or so)
    4) Is there any time period to approach MOL , if we have complaints regarding termination or any other?

    • Drizzlinh,
      1. Yes, that is right. Probation period.
      2. There is no procedure. A termination letter should be provided, then labour card and visa should be cancelled.
      3. Not under probation period.
      4. I am not aware of this. But should be reported immediately of any violations.

  • Hai Deepak,

    If i take a leave, how much amount will be deducted. For eg my salary is 5000 and my basic is 3000

    5000/30 = 166.67 or
    3000/30 = 100

  • our office is working Saturday to Thursday. i would like to know i . am eligible for paid weekly off or not if i am taking leave on thursday

  • Thanks Mr. Deepak for the Article…
    I am having a doubt regarding basis for OT computation. SInce Article 67 of UAE Labour Law specifically says “payment shall be equivalent to the wage paid for the ordinary working hours”, than OT computation shall be based on Gross Pay (i.e. Basic+Allowance). Where exactly Law stating about Paying OT based on BASIC Pay only. Except Article 70, which governs OT for Friday workings.
    Any clarifications on above query will be usefull for me to finalise OT policy in our organisation.

    Thanks in Advance,
    Avi

  • hi deepak,
    My contract says that i work 10 hours a day and not eligible for overtime. for the last 3 years the company is giving me a 2 hour overtime everyday. Now the company is asking me to pay them back due to i am not eligible for overtime. another thing is that when i compared my previous payslip that i recieved 3 years ago to the payslip that they printed. the 2 hours overtime was already removed. need your advice on this. thank you in advance.

  • Hi Deepak!
    Good morning. I’m a nurse working in a big hospital. My concern is that they are not paying our public holiday which is in the contract and UAE labor law. Our in charge nurse is telling us that we will not be paid cash but only time back. The problem is that the time back is ONLY equivalent to the normal hrs duty which is 12 hours. I think that is violating our right and the UAE law… Correct me if I’m wrong…. but I’m 100% sure that public holiday should be paid and not be calculated as normal duty hours. Where can I complain regarding this issue sir?

  • Mr. Deepak

    Normal OT 25 % ie 25/100 = .25

    how come it 1.25?

    Example:

    Basic Salary X 12/365= per day salary
    Per day Salary/8=Per hour salary
    Overtime amount is =Number of overtime hours X Per hour salary X 1.25

  • Hi, i would like to know i am about to sign a contract i work for a salon. they are asking me to do 10hours per day 6 days a week. According to labour law is it ok if they can make me work for that long

  • hi

    i have a question according to my Labor contract my duty is 8 hour per day but my office timings are 8 AM to 5 Pm

    which is 9 hours am i entitled to claim over time.

  • Hi Deepak,

    I have 02 questions for you. your information in this regard will be highly appreciated… I am working in security company since 2009.
    1- we are working 12 hrs daily even on weekends. the contract says that for some professions like guards working hours are 09. it means 8 hrs normal according to labor law and 1 hr break. remaining 03 hrs will be counted as overtime or 02 hrs will be counted as overtime?

    02- if the company did not give me any compensation in the form of alternate holiday or 2.5% of salary for the public holidays, can I claim these benefits from company for last 06 years that I worked on public holidays?

    waiting for your kind information in this regard. thanks

    • You can complain to MOL but i have not come across anyone who has been dues for the last several years but yes for the last year or future it will out the system in place ! I have been associated with some International security organisations and aware of the short cuts some take to avoid paying the dues to employees and pocket it !