How Does Overtime Pay Work in the UAE?
In the UAE, standard overtime (beyond 8 hours a day or 48 hours a week) is paid at 125% of your basic hourly rate, and overtime worked during night hours (10 PM to 4 AM) or on your weekly rest day is paid at 150% of your basic hourly rate. Overtime is calculated on basic salary only, with your hourly rate found by dividing your monthly basic salary by 30 days and then by 8 hours.
Key facts
The specifics, before the explanation.
- Standard daytime overtime: 125% of basic hourly rate (normal rate + 25%)
- Night-shift overtime (10 PM - 4 AM) and rest-day/holiday work: 150% of basic hourly rate (normal rate + 50%)
- Overtime threshold: hours worked beyond 8 per day or 48 per week
- Hourly rate formula: monthly basic salary ÷ 30 days ÷ 8 hours
- Overtime is calculated on basic salary only, not total compensation including allowances
- Legal basis: Federal Decree-Law No. 33 of 2021
What this actually means
The overtime math is straightforward once you have your basic salary isolated from your total package: divide your monthly basic salary by 30 to get a daily rate, then by 8 to get an hourly rate, and that hourly figure is what the 125% or 150% multiplier applies to. Because allowances are excluded, two employees with the same total monthly pay but different basic-to-allowance splits can end up with meaningfully different overtime rates.
The distinction between the two multipliers comes down to when the extra hours happen. Ordinary extra hours during your normal working window pay the lower 125% rate, while anything that falls into the 10 PM to 4 AM night window, or falls on your designated weekly rest day or a public holiday, pays the higher 150% rate.
If your role regularly involves late shifts or weekend work, it's worth tracking your actual hours against your payslip periodically, since overtime miscalculation is one of the more common wage disputes MOHRE handles.
What to actually do
Rules and figures move. Confirm anything time-sensitive with the official regulator before you rely on it.
- Isolate your basic salary figure on your payslip before calculating your own hourly overtime rate
- Track hours worked during the 10 PM-4 AM window separately, since they qualify for the higher 150% rate
- Keep a personal log of overtime hours if your role regularly involves late or weekend work
- Compare your payslip overtime line against your own calculation periodically, not just once
- Raise a mismatch with HR first, and MOHRE directly if it isn't resolved
Frequently asked questions
Does overtime pay include my housing or transport allowance?
No, overtime is calculated on basic salary only, using the same formula regardless of what allowances make up the rest of your package.
Is overtime pay mandatory for all roles?
Certain senior management and specific categories of roles can be exempt from standard overtime rules under UAE law, so check how your specific role and contract are classified.
What counts as a "rest day" for the 150% rate?
Your designated weekly rest day, as stated in your contract or company policy, along with public holidays, both trigger the higher night/rest-day overtime rate if you work on them.
Sources
Referenced for this guide:
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