Overtime Calculation in the UAE (2026 Guide)

By the UAE Gratuity Calculator Editorial Team | Reviewed for accuracy against UAE Federal Decree-Law No. 33 of 2021 | Last updated: October 2026

Have you ever stayed late to finish a project in Dubai? Or worked a Friday shift in Sharjah? Or done night hours in Abu Dhabi during a busy season? Then one question matters more than any other: are you being paid correctly for those extra hours?

In the UAE, overtime is not a favour from your employer. It is a legal right. The pay rates are fixed by Federal Decree-Law No. 33 of 2021 (the UAE Labour Law). Still, surveys of private-sector workers show something worrying. A large share of employees either do not know the overtime rates or never check if their payslip matches them.

This guide explains exactly how overtime works in the UAE in 2026. You will learn the legal limits, the two pay rates (25% and 50%), and how to turn your monthly salary into an hourly rate. You will also get a fully worked AED example you can copy. And you will learn what to do if your employer refuses to pay. Everything here comes from the current Labour Law and its official rules — no guesswork.

The Law: UAE Overtime Rules in Plain Language

Article 19 of the UAE Labour Law sets the framework. Here are the rules that matter. They are numbered so you can refer to them easily:

1. Normal working hours are capped. The standard limit is 8 hours per day or 48 hours per week. Your contract can set fewer hours. But it cannot legally demand more as "normal" hours. Travel time between your home and workplace does not count as working hours.

2. Overtime is capped at 2 hours per day. Your employer can ask you to work beyond normal hours. But the extra time must not be more than two hours in a single day. If you are routinely pushed to 11- or 12-hour days, that is not "overtime." That is a violation — unless you fall into one of the exempt categories described below.

3. Daytime overtime pays basic wage + 25%. For overtime worked during normal daytime hours, you get your hourly wage plus an increase of at least 25%. In practice this means every overtime hour is worth 1.25 times a normal hour.

4. Night overtime (9 PM – 4 AM) pays + 50%. If your overtime falls between 9:00 PM and 4:00 AM, the premium rises to 50% above the hourly wage. So every night overtime hour is worth 1.5 times a normal hour. This higher rate reflects the extra burden of night work.

5. Work on your rest day has special rules. Your contract sets a weekly rest day. Friday is the default in the UAE, though private companies may choose another day. If you must work on your rest day, your employer has two choices. Grant you a substitute rest day. Or pay you for the rest-day work at your hourly wage plus 50%.

6. Public holidays worked must be compensated. If you work on an official UAE public holiday, you get one of two things. Either a day off in lieu. Or double pay for the hours worked — your normal wage plus an equal extra amount.

7. Ramadan shortens the working day. During the holy month of Ramadan, normal working hours drop by two hours per day for all employees, regardless of religion. This shifts the overtime threshold. For a standard 8-hour worker, anything beyond 6 hours a day during Ramadan counts as overtime.

8. Some roles are exempt. The overtime rules do not apply to employees in supervisory or managerial positions who hold real authority over other staff. They also do not apply to certain categories set by Cabinet resolution (such as board members and some senior executives). Not sure if your role qualifies? Check your MOHRE-registered job title and contract. Many people called "supervisors" are not actually exempt under the law.

How Overtime Pay Is Calculated: The Formula

The whole calculation rests on one number: your hourly wage. The standard method used across the UAE is:

Hourly wage = Monthly basic salary ÷ 30 ÷ 8

Why 30? The UAE uses a standard 30-day month for labour calculations, so dividing by 30 turns your monthly salary into a daily rate. Then dividing by 8 turns it into an hourly rate based on the standard 8-hour day.

Once you have the hourly wage, use these overtime formulas:

• Daytime overtime pay = Hourly wage × 1.25 × (number of overtime hours)
• Night overtime pay (9 PM–4 AM) = Hourly wage × 1.50 × (number of overtime hours)
• Rest-day work pay = Hourly wage × 1.50 × (hours worked on rest day), *or* a substitute day off
• Public holiday work pay = Hourly wage × 2.0 × (hours worked), *or* a day off in lieu

One important note on which salary figure to use. The 25% daytime overtime premium is calculated on the basic wage. The 50% night premium is commonly applied to the gross wage (basic plus fixed allowances) in MOHRE practice. If your contract includes large allowances, this difference can change the number in a real way. We show both in the worked example below.

Overtime Rate Summary

Worked Example: AED 6,000 Basic Salary

Let us make this concrete. Imagine Sara, an administrative coordinator in Dubai:

• Basic salary: AED 6,000/month
• Allowances: AED 2,000/month (housing + transport)
• Gross salary: AED 8,000/month

Step 1 — Hourly rates.

• Basic hourly wage = 6,000 ÷ 30 ÷ 8 = AED 25.00/hour
• Gross hourly wage = 8,000 ÷ 30 ÷ 8 = AED 33.33/hour

Step 2 — A typical overtime month. In March, Sara works:

• 12 hours of daytime overtime (staying until 8 PM on six days)
• 4 hours of night overtime (a system migration running 10 PM – 2 AM)
• One Friday (her rest day), 6 hours for an urgent client delivery

Step 3 — Calculate each component.

• Daytime overtime: 12 × 25.00 × 1.25 = AED 375.00
• Night overtime: 4 × 33.33 × 1.50 = AED 200.00
• Friday rest-day work: 6 × 25.00 × 1.50 = AED 225.00

Step 4 — Total overtime pay: 375 + 200 + 225 = AED 800.00

Sara's March payslip should show AED 800 in overtime on top of her normal AED 8,000 salary. That is a total of AED 8,800. If her payslip shows less — or nothing at all — she has a documented shortfall of AED 800 for that month alone. Over a year of similar months, that adds up to AED 9,600. That is more than a full month's salary. This is why checking matters.

Quick check for your own payslip: take your basic salary. Divide it by 240 (30 × 8). Multiply by 1.25. Then multiply by your daytime overtime hours. Compare the result with the "overtime" line on your payslip. If the numbers do not match, keep reading. The last sections of this guide explain exactly what to do.

Overtime vs. Shift Work: Don't Confuse Them

Not every extra hour is "overtime" in the legal sense. Suppose you are hired on a night-shift contract — for example, a security guard contracted for 10 PM to 6 AM. Those night hours are your normal hours, not overtime. The +50% night premium does not get added on top of your agreed shift pay.

The premiums apply only when you work beyond your contracted normal hours. Here is another example. If your contract already sets a 6-day week, Saturday is a normal working day for you — not a rest day. The rest-day premium attaches only to your designated weekly rest day.

Always start from your contract's stated normal hours. Everything beyond that line is where this guide's rates kick in.

Common Overtime Scenarios (and What the Law Says)

Scenario 1: "My manager says overtime is part of the job — no extra pay."

This is the most common complaint MOHRE receives. Here is the truth. Unless you are in a genuinely exempt supervisory role, overtime must be paid at the legal rates. A verbal instruction cannot override this. A company policy cannot override it. Even a clause in your contract cannot override it — any contract term that takes away a legal right is void.

If your payslip never shows overtime despite regular late hours, start keeping your own log. Write down the dates, start and end times, and what you worked on. A simple phone note, kept consistently, is powerful evidence.

Scenario 2: Working through Ramadan with no adjustment.

During Ramadan your normal day drops from 8 hours to 6. If your employer keeps you on an 8-hour schedule, those 2 extra hours each day are overtime. They must be paid at the +25% rate. Many employees do not realise this because their salary "looks the same." But the law changed what counts as a normal hour.

Let us do the math. Over a 22-working-day Ramadan, 2 unpaid overtime hours a day at AED 25/hour × 1.25 equals AED 1,375 owed. That is real money.

Scenario 3: Friday shifts in retail, hospitality, or healthcare.

If Friday is your contractual rest day and you work it, you are owed one of two things. Either a substitute rest day that week or 1.5× pay for the hours worked. Some employers rotate rest days — for example, giving you Sunday off instead. That is perfectly legal and counts as the substitute day.

What is not legal is giving you neither the day off nor the premium. Check your contract to confirm which day is registered as your rest day. The premium attaches to that day, not to Friday automatically.

Scenario 4: "We give time off instead of overtime pay — is that allowed?"

Time-off-in-lieu (TOIL) is not a legal concept for ordinary overtime in the UAE the way the premium rates are. For rest days and public holidays, the law clearly allows a substitute day off instead of the premium. For regular weekday overtime, however, the law prescribes the +25%/+50% payment.

An employer cannot replace overtime pay with time off on their own. They can only do it if you genuinely agree. If you prefer time off, get the agreement in writing. And make sure the exchange is fair. At minimum it should be hour-for-hour. The premium rates suggest 1.25–1.5 hours of leave per overtime hour would be the fair equivalent.

Employee Rights and Employer Obligations

Your rights as an employee:

• You cannot be made to work more than 2 hours of overtime per day.
• You must be paid the legal premiums — they are a floor, not a ceiling. Your contract can offer more.
• Overtime must appear as a separate, clearly labelled line on your payslip. Lumped "allowances" that hide missing overtime are a red flag.
• You cannot be punished, demoted, or fired for asking about overtime pay or filing a MOHRE complaint. Retaliation is itself a violation.
• Pregnant employees and young workers have extra protections that limit night and overtime work.

Your employer's obligations:

• Keep accurate attendance and working-hours records. MOHRE can demand these during inspections.
• Pay overtime in the same pay cycle as normal salary, through the Wage Protection System (WPS) where applicable.
• Make sure total daily hours (normal + overtime) never cross the legal maximum.
• Share the working-hour policies so employees know the overtime rules.

What to Do If Your Overtime Isn't Paid: The MOHRE Complaint Path

If a calm talk with HR does not fix the issue, the UAE gives you a clear step-by-step path. Follow it in order — each step makes your position stronger:

Step 1 — Document everything. Build a simple file with four things: your labour contract (download it from the MOHRE app), three months of payslips, your personal overtime log, and any messages where overtime was requested (WhatsApp messages from a manager count). Use the formulas in this guide to calculate the shortfall. Then you can state an exact AED figure.

Step 2 — Raise it in writing with your employer. Send a polite email to HR. State the dates, the hours, the legal rates, and the total amount owed. Give a reasonable deadline (7–14 days). This written record proves you tried to fix it internally — and MOHRE looks for this.

Step 3 — File a labour complaint with MOHRE. You can file through the MOHRE app, the website (mohre.gov.ae), or the toll-free line 800-60. There is no fee. MOHRE will first try mediation — an officer contacts your employer and tries to reach a settlement. Most straightforward overtime cases end at this stage, once the employer sees the official complaint.

Step 4 — Labour court, if needed. If mediation fails, MOHRE sends the case to the labour court. For claims under AED 100,000 the process is streamlined, and court fees are minimal for employees. Keep every document — courts decide overtime cases almost entirely on records.

Time limit: Labour claims in the UAE have a one-year time limit from the date the wage became due. Do not let unpaid overtime pile up for years hoping it will be fixed "later." File within 12 months of each unpaid month.

Frequently Asked Questions

1. Is overtime compulsory in the UAE, or can I refuse?

Your employer can require reasonable overtime within the 2-hour daily cap. Refusing without a valid reason can be treated as a disciplinary matter. But overtime beyond the cap — or overtime that harms your health — can be refused. The key protection is simple: required overtime must be paid overtime.

2. Does overtime apply to sales staff who earn commission?

Yes, if you are a non-exempt employee. Your hourly wage still comes from your basic salary. Commission is generally not included in the overtime base, unless your contract says otherwise. Commission earners are among the most underpaid for overtime. Why? Employers assume commission "covers it" — but the law does not.

3. I work 9 hours a day but my contract says 8. Is the 9th hour overtime?

Yes. Every minute beyond your contractual normal hours (up to the 2-hour cap) is overtime. It must be paid at +25%. Let us calculate: one full extra hour daily over 22 working days at AED 25/hour is AED 687.50 per month. Worth claiming.

4. My company pays a flat "overtime allowance" each month. Is that legal?

Only if the flat amount equals or beats what the legal formula would give for your actual hours. A fixed AED 300 "overtime allowance" for someone working 20 real overtime hours (worth AED 625+) is unlawful. The allowance must match reality. And you can demand an hours-based reconciliation.

5. Are managers really exempt from overtime?

Only genuinely managerial roles with real authority qualify — hiring, firing, and directing other employees. Even then it depends on your registered occupation and contract, not just your title. A "team lead" who does the same work as the team is usually not exempt. When in doubt, the exemption is read narrowly — in the employee's favour.

6. Does overtime count toward my gratuity calculation?

No. End-of-service gratuity is calculated on the basic wage (and for the daily rate, the basic wage ÷ 30), not on overtime earnings. Overtime boosts your monthly income but does not increase your gratuity. This is one more reason to check that your basic salary — not just total cash — is correct in your contract.

Check What You're Owed — Then Check Your Gratuity Too

Overtime is only one part of your end-of-service picture. If you are tracking what your employer owes you, run your dates and salary through a proper gratuity calculation as well. Many employees discover their gratuity was computed on the wrong basic wage at the same time they find overtime shortfalls. Use the free gratuity calculator on uaegratuitycalc.org to verify your end-of-service entitlement under the current UAE Labour Law. Keep both numbers in your records before you sign any final settlement.