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Table of Contents

• UAE Overtime Rates at a Glance
• What Is Overtime Under UAE Labour Law?
• Standard Working Hours in the UAE
• Legal Limits on Overtime
• How Is Overtime Calculated in the UAE?
• Overtime Calculation Examples
• Overtime on Rest Days and Public Holidays
• Common Mistakes in Overtime Calculation
• Need Help With Overtime and Payroll in the UAE?
• FAQs on Overtime in the UAE

Last updated: 3 November 2026 | Applies to: UAE private sector (MoHRE-registered employers) for 2027

Overtime in the UAE private sector is governed by Article 19 of Federal Decree-Law No. 33 of 2021 on the Regulation of Employment Relations and Article 15 of its executive regulations, Cabinet Resolution No. 1 of 2022. Overtime is calculated on the basic wage, not the gross salary, and is paid at a premium of at least 25%, or at least 50% for night work and rest-day work.

The overtime provisions of the law have not changed for 2027. This guide explains the formula, the different overtime rates, the legal limits and the common payroll mistakes, with worked examples.

UAE Overtime Calculator

UAE Overtime Rates at a Glance

What Is Overtime Under UAE Labour Law?

Overtime is any time an employee works beyond their normal working hours at the employer’s request. The employer can ask an employee to work overtime when work requires it, within the legal limits and with the required pay or time off.

Standard Working Hours in the UAE

• Normal hours: up to 8 hours a day or 48 hours a week for private-sector employees.
• Breaks: an employee should not work more than 5 consecutive hours without a break, and breaks should total at least one hour. Breaks are not counted as working hours.
• Commuting: travel to and from work is not counted as working time, except in limited cases such as delays caused by bad weather or a breakdown of employer-provided transport, or where the contract says otherwise.
• Ramadan: private-sector working hours are reduced by 2 hours a day. MoHRE announces the reduced hours each year.

Legal Limits on Overtime

• Overtime cannot exceed 2 hours a day, except where needed to prevent a serious loss or accident, or to deal with one.
• Total working hours, including overtime, cannot exceed 144 hours every three weeks.
• An employee cannot be required to work more than two consecutive rest days, except daily-paid workers.

Who is exempt from the working-hours rules?

Under Article 15 of Cabinet Resolution No. 1 of 2022, the maximum hours and overtime provisions do not apply to:

• Chairpersons and members of boards of directors.
• Supervisory staff whose positions give them the powers of the employer.
• Crews of naval vessels and seafarers with special service conditions.
• Workers in continuous shift work for technical reasons, provided average working hours do not exceed 56 a week.

How Is Overtime Calculated in the UAE?

For a monthly-paid employee, the standard payroll method is:

Basic hourly wage = Basic monthly salary ÷ 30 ÷ 8

Regular overtime pay = Basic hourly wage × 1.25 × overtime hours
Night overtime pay   = Basic hourly wage × 1.50 × overtime hours (10 pm to 4 am)
Rest-day pay         = Basic hourly wage × 1.50 × hours worked (if no substitute day)

Use the employee’s actual normal daily hours in place of 8 if the contract sets fewer hours. If the contract or company policy uses a more favourable basis, such as the gross wage, the more favourable basis applies.

What you need for the calculation

• The employee’s basic monthly salary from the contract.
• Their normal daily working hours.
• The approved overtime hours, split by type: regular, night or rest day.
• Whether the employee is a shift worker or in an exempt category.

Overtime Calculation Examples

All examples use a basic monthly salary of AED 6,000 and an 8-hour working day.

Basic hourly wage = 6,000 ÷ 30 ÷ 8 = AED 25

Example 1: Regular overtime

The employee works 10 hours of overtime on normal working days, before 10 pm.

Overtime pay = 25 × 1.25 × 10 = AED 312.50

Example 2: Night overtime

The employee works 4 hours of overtime between 10 pm and 4 am and is not a shift worker.

Night overtime pay = 25 × 1.50 × 4 = AED 150

Example 3: Work on the weekly rest day

The employee works 8 hours on their rest day and the employer does not give a substitute rest day.

Rest-day pay = 25 × 1.50 × 8 = AED 300

Total for the month

Overtime pay is added to the employee’s normal monthly salary and paid through the Wage Protection System (WPS) with the regular payroll.

Overtime on Rest Days and Public Holidays

Rest days: if an employee works on the weekly rest day set in the contract or company regulations, the employer must give either a substitute rest day or the basic wage for the hours worked plus at least 50%.

Public holidays: if an employee works on an official public holiday, the employer must give either a substitute day off for each holiday worked, or pay the wage for that day plus at least 50% of the basic wage. Official holidays for 2027 follow the unified list set by Cabinet Resolution No. 27 of 2024.

Also read: Leave Salary Calculation in UAE | Overtime Calculation in Oman

Common Mistakes in Overtime Calculation

• Using the gross salary instead of the basic salary, unless the contract says gross.
• Rounding the hourly rate too early. Calculate with the full hourly figure and round only the final amount.
• Applying the night rate to shift workers, who are excluded from the 50% night premium.
• Paying rest-day work at the 25% rate instead of the 50% rate, or giving neither a substitute day nor the premium.
• Exceeding the 2-hour daily cap or the 144-hour three-week limit without a legal exception.
• Not keeping approved overtime records, which makes disputes hard to defend.

Need Help With Overtime and Payroll in the UAE?

Overtime errors are a common source of salary complaints and MoHRE disputes. Our payroll services in UAE calculate overtime, leave salary and final settlements correctly and process salaries through WPS, so your payroll stays compliant in 2027.

FAQs on Overtime in the UAE

Sources:
MoHRE – Federal Decree-Law No. 33 of 2021 and its amendments,

M. A. Farahat – ACPA, CFE, CICA

Research and Publications Department
Payroll Middle East
Tel: +971 4 2500251 | Email: sales@payrollmiddleeast.com