Overtime Calculation in the UAE: 2026 Complete Guide

Most employees in the UAE often work more hours than they are allocated, yet they do not know how they are compensated for their overtime. Without a clear understanding of the rules, mistakes can happen, and in some cases, it can lead to underpayment.

Under the UAE Labour Law, any work exceeding  8 hours a day or 48 hours a week is treated as overtime. Employers are legally required to compensate these additional hours based on the employee’s basic salary and the applicable overtime rate. The rate depends on when the extra work is performed, whether on a regular working day, a rest day, a public holiday, or during night hours. Understanding overtime calculation in the UAE helps employees verify their earnings and ensures employers remain compliant with labour regulations. In this guide, you’ll learn how overtime is calculated, who is eligible, and how different rates apply in real-life scenarios.

Then you are generally entitled to overtime in the UAE.

For example, if your normal shift is 8 hours and someone requests that you work 2 additional hours, those 2 additional hours are considered overtime. This is true even when you end up working more than 48 hours per week. 

This model supports the fact that overtime is appropriately paid in the UAE, based on overtime calculation in the UAE as per the labour law.

Positions That May Be Exempt from Overtime

The nature of some jobs makes them unsuitable for coverage under overtime provisions. These typically include:

These are the jobs that offer flexible work arrangements and extended decision-making powers. Such cases are treated as extra hours of work, not as overtime. 

Overtime Rules for Private Sector Employees

For eligible employees, overtime is regulated. Employers may request extra work only when necessary, and in most cases, it should not exceed 2 hours per day, unless in extreme circumstances.

All in all, a typical workday should not exceed 10 hours, including overtime. The compensation is calculated based on the employee’s basic salary and the overtime rate stipulated by law. 

The purpose of these limits is to protect employees while also giving businesses operational flexibility.

Late shifts do not necessarily make you eligible for overtime. The UAE labour law provides that overtime is applicable only when an employee works beyond the stipulated working hours or during their protected periods, such as rest days, work-free holidays, or nights. The day

The day and the timing of work determine eligibility and overtime pay in the UAE. Below is how it applies in each case. 

Overtime on Regular Working Days

According to the UAE labour law, overtime is applicable only when an employee works more than 8 hours a day or 48 hours a week on normal working days. 

Key Points:

For example, if your shift ends at 5 pm but you are on call and required to work until 7 pm, the 2 extra hours will be counted as overtime. This is the most common form of overtime in the private sector.

Overtime on Weekly Rest Days

All employees have the right to at least one day off every week. If you need to work on your assigned rest day, overtime rules apply.

In such cases, the employee must receive:

• Either a substitute rest day, or
• Overtime compensation as defined by law.

Working on a rest day is treated more seriously because it affects work-life balance. That is why the terms of compensation are tougher than usual working days. 

Overtime on Public Holidays

When the government announces the country’s public holidays, employees in the UAE are usually not supposed to work. If an employer requests you to work on a public holiday, overtime rules will apply.

The employee usually has a right to:

• A compensatory day off, or
• Additional overtime pay, calculated at a higher rate.

Holiday work is considered exceptional and, hence, the remuneration is elevated. 

Overtime during Night Hours

Night work is defined as any work performed between 10 PM and 4 AM. If overtime falls in these hours, it is treated differently because night work is considered more difficult.

In such cases:

• The overtime rate increases.
• Additional compensation is applied to the basic hourly wage.

However, certain categories of employees may have different arrangements depending on the nature of their job.

         Table 1: UAE Overtime Rates (2026)

Situation	Overtime Rate
Regular Working Day	125% of the basic hourly wage
Night Work (10 PM – 4 AM)	150% of the basic hourly wage
Weekly Rest Day	150% of the basic hourly wage, or a substitute rest day
Public Holiday	150% of the basic hourly wage, or a substitute day off

Calculating overtime in the UAE is easy if you follow the correct method under the UAE labour law. Whether you are an employee verifying your salary or an employer ensuring compliance, understanding the overtime calculation formula in the UAE will help you compute overtime pay accurately.

Step 1: Calculate Basic Hourly Wage

Firstly, you have to calculate your hourly rate. For that, use the formula given below.

Basic Hourly Wage = Basic Salary

                                   30×8

This computation is based on 30 days per month and 8 hours per day, which are the standard working hours in the private sector of the UAE. Your basic hourly wage determines the overtime rate in the UAE.

Step 2: Apply the Correct Overtime Percentage

Then, apply the legally required overtime percentage depending on when the extra work was performed.

• Weekdays: 125% of the hourly wage.
• Rest days/public holidays: 150% of the hourly wage.

This will ensure that your overtime remuneration complies with the UAE Labour Law. 

Step 3: Multiply by Total Overtime Hours

After getting the adjusted hourly rate, multiply it by the total number of overtime hours worked.

Overtime Pay = Adjusted Hourly Wage × Overtime Hours

This will provide you with the total overtime pay in the UAE for the specific period. For quick verification, you can calculate your overtime instantly using the UAE Gratuity & Overtime Calculator.

For clarity, here are the standard overtime formulas used in different scenarios:

Formula for Regular Working Day Overtime

Overtime Pay = Hourly Wage × 1.25 × Overtime Hours

On regular days, employees get 125 % of their regular wages for overtime.

Formula for Night Shift Overtime

Overtime Pay = Hourly Wage × 1.50 × Overtime Hours

Night shifts carry a 50% more of their hourly wage, due to the nature of late-hour shifts.

Formula for Public Holiday or Rest Day

Overtime Pay = Hourly Wage × 1.50 × Overtime Hours. Employees have a right to receive 150% of their hourly wages when they are obligated to work on a public holiday or on a weekly rest day.

To illustrate a real-life scenario of overtime calculation in the UAE, let us consider an example. Assume that an employee has a minimum salary of AED 6,000 monthly and works late hours within a normal working day. According to the overtime calculation in the UAE as per labour law, we will initially compute their wage per hour, then the overtime rate,e and lastly, we will compute the total overtime wages.

                        Table 2: Example of Overtime Calculation for a Regular Working Day

Component	Value
Basic Salary	AED 6,000
Hourly Wage	AED 25
Overtime Hours	10 hours
Overtime Rate	1.25 × Hourly Wage = AED 31.25
Total Overtime Pay	AED 312.50

In this example:

1. The hourly wage is computed as the monthly salary divided by 30 days/ 8 working hours/ day.
2. The overtime rate on a regular weekday is 125% of the hourly wage.
3. The adjusted hourly rate is multiplied by the total overtime hours,  which equals the total overtime pay.

This step-by-step table simplifies overtime calculations in the UAE, and both employees and employers can be aware of their rights and entitlements.

The UAE Labour Law clearly establishes the limits to protect employees:

•  The number of hours worked overtime should not exceed 2 hours daily.
• The total number of working hours, including regular and overtime hours, must not exceed 144 hours in any three weeks. 

These are stringent boundaries to ensure individuals are not overworked and are aware of federal laws. 

Yes, it does not necessarily mean that overtime should be paid in cash. When you are working on a weekly rest day or a public holiday, your employer can provide a compensatory day off instead of money. Alternatively, you can be paid a higher rate of your pay for that day. Such a lax system contributes to the work-life balance.

When an employer fails to pay overtime as stipulated by UAE law, it constitutes a violation of the labour law. Employees are also allowed to file complaints with the Ministry of Human Resources and Emiratisation(MOHRE) against unpaid wages to ensure their rights are not violated. When employers are found guilty, they may have to pay fines and penalties, face legal prosecution, and pay outstanding overtime. Constant failure to comply may also result in suspension of the business licence or other penalties under the UAE labour law.

Understanding overtime calculation in the UAE enables employees to be fairly paid and employers to ensure that they adhere to labour laws. Knowing how to calculate overtime from basic salary and applying correct rates on the weekdays, rest days, public holidays, or even night work prevents errors in payments and underpayment. 

You can use the UAE Gratuity & Overtime Calculator for fast, accurate overtime results. Staying informed about your overtime rights protects your earnings and ensures compliance with UAE labour regulations.