Time Attendance System

UAE Labour Law Guide

Ramadan Working Hours in UAE β€” Employer Guide 2025

How UAE Labour Law changes working hours during Ramadan, what it means for overtime and payroll across all employees, and how AITIME applies Ramadan schedules automatically on day one.

Who the Ramadan Hour Reduction Applies To

A common question among UAE HR managers is whether the Ramadan working hour reduction applies only to Muslim employees or to the entire workforce. The UAE Labour Law text does not limit the reduction to Muslim employees β€” it applies to all private sector employees subject to Federal Decree-Law No. 33 of 2021.

In practice, most UAE employers apply the Ramadan schedule universally across their workforce. This is both the safer compliance approach and the more practical operational choice β€” maintaining two different shift schedules for Muslim and non-Muslim employees in the same team creates attendance management complexity and potential discrimination claims.

Some employers in sectors where operational continuity is critical (hospitals, emergency services, utilities) maintain standard hours for certain roles with compensatory arrangements. These must be documented and, ideally, discussed with employees prior to Ramadan.

Overtime During Ramadan β€” Rates and Calculation

During Ramadan, the 6-hour working day becomes the contractual baseline. Any work beyond 6 hours per day during Ramadan is classified as overtime under Article 19 of Federal Decree-Law No. 33 of 2021 and must be compensated accordingly.

The overtime rates during Ramadan are the same as at any other time of year: 125% of the hourly basic rate for regular overtime, and 150% for work between 9 PM and 4 AM. However, the hourly rate base changes slightly during Ramadan for the purpose of calculating overtime pay. Some UAE employers use the standard annual hourly rate (monthly basic Γ· 30 Γ· 8), while others recalculate based on the Ramadan day (monthly basic Γ· 30 Γ· 6). The MOHRE standard is to use the contracted shift as the basis β€” during Ramadan, that is 6 hours per day.

AITIME handles this automatically β€” when Ramadan Mode is active, the system uses the 6-hour baseline for overtime threshold detection and applies the correct overtime multiplier to all excess hours.

Ramadan Hours Across Saudi Arabia, Qatar, and GCC

For businesses operating across multiple GCC countries, Ramadan compliance is consistent in principle but varies in application details. Every GCC country reduces working hours during Ramadan for employees subject to local labour law. Saudi Arabia's Labour Law (Article 98) applies the 6-hour day specifically to Muslim employees. Qatar's Labour Law (Law No. 14 of 2004, Article 73) and Kuwait's Labour Law similarly mandate reduced hours.

AITIME supports multi-country GCC operations with country-specific Ramadan rules built in. When Ramadan Mode is activated for a Saudi operation, the system applies the Saudi-specific rules. UAE and Qatar operations can run simultaneously with appropriate configurations for each entity.

Employer Compliance Checklist for Ramadan

  • Monitor the UAE government moon sighting announcement and confirm Ramadan start date
  • Activate Ramadan working hours on the confirmed start date β€” not the day before or after
  • Adjust all employee shift schedules to reflect the 6-hour working day limit
  • Recalculate overtime thresholds β€” hours beyond 6 per day are now overtime, not just beyond 8
  • Ensure payroll software applies the correct Ramadan hourly rates for overtime pay
  • Update attendance reports to reflect Ramadan-adjusted hours for MOHRE audit purposes
  • Communicate schedule changes to all employees and department managers before Ramadan begins
  • Revert to standard hours immediately after the UAE government confirms Eid Al Fitr

Key Facts β€” Ramadan Working Hours (UAE Labour Law)

  • Legal basis: Federal Decree-Law No. 33 of 2021, Article 17
  • Reduction: 2 hours per day during Ramadan for all employees
  • Standard becomes: 6 hrs/day or 36 hrs/week during Ramadan
  • Applies to: All private sector employees (Muslim and non-Muslim)
  • Overtime during Ramadan: Hours beyond 6/day = overtime at 125% (or 150% night)
  • GCC coverage: Saudi Arabia, Qatar, Kuwait, Bahrain, Oman all have similar rules
  • AITIME feature: One-click "Ramadan Mode" adjusts all shifts to 6 hrs automatically

How AITIME Handles Ramadan Automatically

Managing Ramadan hours manually across 50, 200, or 1,000 employees is a significant HR burden that creates compliance risk. Every employee's shift must be adjusted, every overtime threshold recalculated, and payroll must reflect the new daily baseline β€” all within hours of the official Ramadan start announcement. AITIME removes this entirely with a purpose-built Ramadan Mode.

1

Activate Ramadan Mode

One toggle in the AITIME admin dashboard activates Ramadan hours across your entire workforce. Set the start date when the UAE government announces it β€” AITIME applies the change from that date forward automatically.

2

Automatic shift adjustment

All employee shifts are automatically reduced to 6 hours per day. No manual schedule editing is required across any department, site, or employee category.

3

Overtime recalculated from new baseline

Any hours worked beyond 6 per day are automatically flagged and calculated as overtime at the correct UAE rate. Biometric check-out records beyond the 6-hour mark trigger the overtime calculation in real time.

4

Payroll includes Ramadan overtime accurately

All Ramadan overtime is included in the monthly payroll calculation and the WPS SIF file export automatically β€” no separate data entry or manual adjustments needed.

5

Revert after Eid

When you deactivate Ramadan Mode after the Eid Al Fitr announcement, all shifts return to their standard configurations immediately. Historical attendance records retain the Ramadan schedule for audit accuracy.

See the AITIME Dashboard in Action

AITIME automates Ramadan hour management for UAE employers β€” see it in one demo.

AITIME HR Dashboard β€” real-time attendance tracking software UAE
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People Also Ask

What are the legal working hours during Ramadan in UAE?+

Under Article 17 of UAE Labour Law (Federal Decree-Law No. 33 of 2021), working hours during the Holy Month of Ramadan are reduced by 2 hours per day for all private sector employees. This means the standard 8-hour working day becomes 6 hours per day, and the weekly limit reduces from 48 hours to 36 hours. The reduction is a statutory entitlement β€” employers cannot contractually waive it, and failure to apply it exposes the company to MOHRE penalties.

Does the Ramadan working hour reduction apply to non-Muslim employees in UAE?+

Yes. The UAE Labour Law text specifies that working hours "shall be reduced by two hours" during Ramadan without restricting this to Muslim employees. In practice, MOHRE guidance and UAE court precedent have consistently held that the reduction applies to all employees, regardless of religion, in the private sector. Most UAE employers apply Ramadan hours universally across their workforce to maintain consistency and avoid discrimination claims.

How is overtime calculated during Ramadan in UAE?+

During Ramadan, the reduced 6-hour working day becomes the new daily baseline. Any hours worked beyond 6 hours per day during Ramadan qualify as overtime. The overtime rate remains the same as outside Ramadan: 125% of the basic hourly rate for regular overtime, and 150% for work between 9 PM and 4 AM. The hourly rate is recalculated based on the Ramadan 6-hour day for the purpose of overtime pay: Monthly basic salary Γ· 30 Γ· 6.

Do Ramadan working hour reductions apply in Saudi Arabia, Qatar, and other GCC countries?+

Yes. All six GCC countries have Ramadan working hour reductions built into their labour laws. Saudi Arabia reduces hours to 6 hours per day for Muslim employees under Article 98 of the Saudi Labour Law. Qatar reduces hours to 6 per day for all employees during Ramadan. Kuwait sets a 6-hour day during Ramadan. Bahrain and Oman apply 2-hour reductions per day. AITIME applies the correct country-specific Ramadan rules for each GCC operation.

How does AITIME handle the switch to Ramadan working hours?+

AITIME has a dedicated Ramadan Mode toggle in the admin dashboard. When activated at the start of Ramadan, the system automatically adjusts all employee shifts from 8 hours to 6 hours per day across the entire workforce. Overtime thresholds are recalculated from 8 hours to 6 hours per day automatically. After Eid Al Fitr is confirmed, deactivating Ramadan Mode reverts all shifts to their standard configurations. No manual schedule editing is required at any point.

Ramadan Hours Handled Automatically with AITIME

One click activates Ramadan Mode across your whole workforce β€” shift adjustments, overtime recalculation, and payroll updates happen automatically. No manual edits, no compliance risk.

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Last updated: September 2025 | Author: AITIME HR Team