Overtime pay in the UAE: 25%, 50% at night, rest days and the 144-hour limit

The UAE Labour Law sets a normal working week of 48 hours, eight a day, and says what an employer pays for every hour beyond it. Overtime is worked out on the basic wage, not the total package.

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The rates

The rates are minimums: a contract may pay more. The night rate does not apply to a worker employed on shifts, whose normal hours may fall at night.

OvertimeThe hourly basic wage plus at least 25%
Overtime between 10 pm and 4 amThe hourly basic wage plus at least 50% (shift workers excepted)
Work on the rest dayA substitute rest day, or the basic wage for the hours plus at least 50%

The limits

  • Normal hours: eight a day, 48 a week.
  • Overtime: no more than two hours a day, unless the work is needed to prevent a serious accident or to deal with its consequences.
  • In every case, no more than 144 working hours in any three weeks, overtime included.
  • In Ramadan MOHRE cuts normal hours in the private sector by two a day, for every employee, with no cut in pay.

A worked example

An employee whose basic wage works out at AED 25.00 an hour; the allowances do not enter the sum:

Hourly basic wageAED 25.00
One overtime hour at +25%AED 31.25
One overtime hour between 10 pm and 4 am, at +50%AED 37.50
Ten overtime hours in the month, by dayAED 312.50

What the employer keeps

Overtime is paid with the month's wages through the Wage Protection System. A record of who worked which hours, and at which rate, is what answers a claim.

How Aqid ERP handles it

Aqid ERP's payroll pays overtime as a line on the month's run, on the basic wage, so it goes into the WPS file with the rest of the salary and posts to the ledger. Aqid ERP does not yet count the hours: enter the overtime hours and the rate for each employee. The site's overtime calculator is Saudi Arabia's and uses the Saudi law, so it is not linked here.

Questions

How is overtime calculated in the UAE?

On the basic wage: the hourly basic wage plus at least 25%, or plus at least 50% for hours between 10 pm and 4 am, except for shift workers.

How many overtime hours are allowed in the UAE?

No more than two a day, and no more than 144 working hours in three weeks in all, except to prevent or deal with a serious accident.

What if an employee works on the rest day?

They get a substitute rest day, or the basic wage for the hours plus at least 50%.

Is overtime paid on the total salary?

No. The Labour Law works it on the basic wage.

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