Common Shift Allowances in UAE
| Allowance Type | Typical Range | Included in Gratuity? |
|---|---|---|
| Night shift allowance | 25–50% extra per hour | No |
| Housing allowance | AED 500–3,000/month | No |
| Transport allowance | AED 200–800/month | No |
| Meal/food allowance | AED 150–400/month | No |
| Site/remote allowance | AED 300–1,500/month | No |
| Basic salary | Varies by role | Yes |
How AITIME Automates Shift Allowance Calculations
Manual allowance management across a large shift-based workforce leads to errors, disputes, and payroll delays. AITIME links shift attendance data directly to allowance calculations:
- Each shift type (day, night, weekend) is assigned its applicable allowances
- When an employee works a night shift, the night allowance is automatically added
- Site-specific allowances are triggered by the location of check-in
- All allowances are itemised in the monthly WPS SIF file
- Allowances are kept separate from basic salary in gratuity calculations
Frequently Asked Questions
What allowances are common for shift workers in UAE?
Common shift allowances in UAE include: night shift allowance (typically 25–50% of basic hourly rate), transport allowance, housing allowance, meal allowance, and site-specific allowances for remote or hazardous locations. Allowances are governed by the employment contract, not UAE Labour Law directly.
Are shift allowances included in UAE gratuity calculations?
No. UAE gratuity is calculated on basic salary only. Allowances — including shift allowances, housing, and transport — are excluded from the gratuity base under UAE Labour Law.
Are shift allowances subject to WPS?
Yes. All salary components paid via bank transfer — including basic salary and all allowances — must be included in the WPS SIF file. Each allowance type appears as a separate line item in the SIF file submitted to the bank.
How does AITIME calculate shift allowances automatically?
AITIME assigns allowance rules to each shift type. When an employee works a night shift or a specific site assignment, the relevant allowance is automatically included in their payroll calculation for that period — no manual entry needed.