Time Attendance System

UAE Labour Law Guide

How to Calculate Overtime in UAE

A complete reference guide to UAE overtime rates, working hour limits, and step-by-step calculation methods under Federal Decree-Law No. 33 of 2021 β€” with a worked example and payroll automation tips.

Standard Working Hours Under UAE Labour Law

Federal Decree-Law No. 33 of 2021 β€” the UAE's primary private sector labour legislation β€” sets clear limits on how many hours employees can work before overtime applies. Under Article 17, the general rule is 8 hours per day or 48 hours per week. This baseline applies to the vast majority of private sector employees working for mainland UAE companies and most free zone entities registered with MOHRE.

Certain industries are permitted to extend the daily limit to 9 hours per day. These include hotel and hospitality operations, retail trade, security guarding, and other roles where operational continuity demands flexible scheduling. Employers in these sectors must obtain prior MOHRE approval and cannot unilaterally extend hours without legal basis.

During the Holy Month of Ramadan, Article 17 mandates a 2-hour reduction for all employees β€” the working day contracts to 6 hours per day or 36 hours per week. This is a legal entitlement, not a courtesy, and applies equally to Muslim and non-Muslim employees under MOHRE guidance.

  • General employees: 8 hrs/day or 48 hrs/week
  • Hospitality, retail, security (approved sectors): up to 9 hrs/day
  • During Ramadan (all employees): 6 hrs/day or 36 hrs/week
  • Any hours beyond these limits are legally classified as overtime

UAE Overtime Rates at a Glance

Article 19 of Federal Decree-Law No. 33 of 2021 prescribes specific rates depending on when the overtime is worked. The minimum rates are statutory β€” employment contracts can provide better rates, but cannot legally go below these thresholds.

Overtime SituationMinimum Rate
Extra hours on a regular working day125% of hourly basic rate
Work between 9 PM and 4 AM (night overtime)150% of hourly basic rate
Work on designated weekly rest day150% of daily rate OR substitute rest day
Work on official UAE public holiday150% of daily rate + substitute rest day
Overtime during Ramadan (beyond 6 hrs/day)125% of adjusted Ramadan hourly rate

Step-by-Step Overtime Calculation with Worked Example

The UAE overtime formula is straightforward once you understand the base rate. All calculations use the basic salary only β€” housing allowances, transport allowances, and other variable components are excluded from the overtime base. This is a common compliance error that leads to underpayment disputes.

Step 1 β€” Calculate the hourly basic rate

Hourly rate = Monthly basic salary Γ· 30 days Γ· 8 hours

Example: AED 6,000 basic salary Γ· 30 Γ· 8 = AED 25.00 per hour

Step 2 β€” Apply the overtime multiplier

Regular OT pay = Hourly rate Γ— OT hours Γ— 1.25

Night OT pay = Hourly rate Γ— OT hours Γ— 1.50

Example: AED 25.00 Γ— 10 hours Γ— 1.25 = AED 312.50 overtime pay

Step 3 β€” Include in monthly payroll and WPS

Add overtime pay to the net salary figure in the WPS SIF file. The SIF file must reflect the correct total including overtime to comply with MOHRE Wage Protection System requirements.

Rest Day and Public Holiday Overtime

When an employer requires an employee to work on their weekly rest day (Friday or Saturday for most employees), Article 22 of Federal Decree-Law No. 33 of 2021 gives the employee a choice: accept a substitute rest day within the following 30 days, or receive compensation at 150% of their regular daily rate. The employee cannot be forced to waive the rest day entitlement entirely.

Public holidays in the UAE β€” including National Day, Eid Al Fitr, Eid Al Adha, and UAE New Year β€” carry additional protections. Employees who work on official public holidays are entitled to both the 150% rate premium and a substitute day off. Employment contracts that attempt to waive these entitlements are unenforceable under UAE law.

Maximum Overtime Limits and Employee Exemptions

Article 19 of Federal Decree-Law No. 33 of 2021 imposes a hard limit of 2 additional hours per day beyond the standard working hours in normal circumstances. This caps the maximum working day at 10 hours. Employers who systematically exceed this limit β€” even with the employee's consent β€” risk MOHRE penalties and, in repeat cases, licence restrictions.

Emergency exceptions exist: if the nature of the work requires it to avoid serious loss or danger, the 2-hour cap can be exceeded temporarily. However, employers must document the emergency justification. Routine business pressure does not qualify as an emergency under MOHRE guidance.

Certain employee categories are exempt from overtime entitlement. Article 17 excludes senior managers and supervisors who have genuine managerial authority and whose total remuneration reflects their seniority. This exemption is commonly misapplied β€” a job title of "manager" alone does not create the exemption. The employee must genuinely exercise hiring, firing, or budget authority.

Key Facts β€” UAE Overtime (Federal Decree-Law No. 33 of 2021)

  • Standard hours: 8 hrs/day or 48 hrs/week (40 hrs in Ramadan)
  • Regular overtime rate: 125% of basic hourly wage
  • Night overtime (9 PM–4 AM): 150% of basic hourly wage
  • Rest day work: 150% daily rate OR compensatory rest day (employee's choice)
  • Maximum overtime: 2 hours/day except in declared emergencies
  • Hourly rate formula: Monthly basic salary Γ· 30 Γ· 8
  • Worked example: AED 6,000 salary β†’ AED 25/hr β†’ 10 hrs OT at 125% = AED 312.50
  • OT base: Basic salary only β€” allowances excluded

How AITIME Automates UAE Overtime Calculation

Calculating overtime manually for 50 or 500 employees every month creates room for calculation errors, missed rate changes, and compliance gaps that can result in MOHRE disputes. AITIME eliminates this by automating the entire chain β€” from raw attendance data to WPS-ready payroll export.

When an employee clocks in and out via a ZKTeco biometric terminal, a mobile GPS check-in, or the AITIME web portal, the system compares actual hours against the contracted shift in real time. When actual hours exceed the shift limit, AITIME automatically identifies whether the excess falls in standard hours (125% rate), night hours (150% rate), or a rest day (150% or substitute), and applies the correct multiplier.

  • Pulls verified attendance data directly from biometric devices β€” no manual timesheet entry
  • Applies 125% or 150% overtime rate based on the time of day and day type automatically
  • Flags overtime records that exceed the 2-hour daily legal maximum for manager review
  • Switches to Ramadan hours with one click, adjusting overtime thresholds across all employees
  • Includes calculated overtime in the WPS SIF file export, ready for bank submission
  • Stores all overtime records with full audit trail for MOHRE inspection

See the AITIME Dashboard in Action

AITIME automates overtime calculation for UAE employers β€” see it live in one demo.

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People Also Ask

What is the standard working hour limit in UAE?+

Under UAE Labour Law (Federal Decree-Law No. 33 of 2021, Article 17), the standard working hours are 8 hours per day or 48 hours per week for general employees. During the Holy Month of Ramadan, working hours are reduced by 2 hours per day, making the limit 6 hours per day or 36 hours per week. Some roles in hospitality, security, and retail may work up to 9 hours per day under specific conditions permitted by the Ministry of Human Resources and Emiratisation (MOHRE).

What is the overtime rate in UAE?+

UAE Labour Law mandates a minimum overtime rate of 125% of the regular hourly wage for extra hours worked on regular weekdays. For hours worked between 9 PM and 4 AM (night shift overtime), the rate increases to 150% of the regular hourly wage. These rates are calculated on the basic salary component only β€” housing and transport allowances are excluded from the overtime base rate.

What is the overtime rate for working on a rest day in UAE?+

If an employee is required to work on their designated weekly rest day (typically Friday or Saturday), they have two options under Article 22 of Federal Decree-Law No. 33 of 2021: they can receive a substitute rest day within 30 days, or they can receive overtime pay at 150% of their regular daily rate. The choice belongs to the employee unless otherwise stipulated in the employment contract.

How is the hourly rate calculated for overtime in UAE?+

The UAE overtime hourly rate formula is: Monthly basic salary Γ· 30 (days) Γ· 8 (hours) = hourly rate. Example: An employee earning AED 6,000 basic monthly salary has an hourly rate of AED 6,000 Γ· 30 Γ· 8 = AED 25.00 per hour. For 10 hours of regular overtime at 125%: 10 Γ— AED 25 Γ— 1.25 = AED 312.50. Only the basic salary is used β€” allowances are excluded.

Is there a maximum number of overtime hours per day in UAE?+

Yes. Article 19 of Federal Decree-Law No. 33 of 2021 caps overtime at 2 additional hours per day in normal circumstances, making the maximum working day 10 hours. Exceptions exist for specific emergency situations or industries declared by the MOHRE, but these must be formally justified. Persistent overrun of the 2-hour cap without legal grounds exposes employers to MOHRE penalties.

Let AITIME Handle Overtime Automatically

AITIME calculates overtime for every employee, applies the correct UAE rate, and includes it in your WPS payroll export β€” no spreadsheets, no manual formulas, no compliance risk.

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Last updated: September 2025 | Author: AITIME HR Team