Work out what an employee is owed for extra hours before payroll closes. Enter the basic monthly salary and the hours worked.
Based on Federal Decree-Law 33 of 2021, Article 19.
Enter the hours worked
How it works: hourly wage = basic monthly salary divided by 30 days, then by 8 working hours.
Normal overtime is paid at 125 percent of the hourly wage. Overtime at night (10pm to 4am),
on a weekly rest day, or on a public holiday is paid at 150 percent. During Ramadan the standard
working day is reduced to 6 hours, so hours beyond 6 count as overtime.
This tool gives an estimate for planning only. It is not legal advice. Confirm final entitlements
with MOHRE or a qualified advisor.
The rule
How overtime pay is calculated in the UAE
Overtime in the UAE private sector is set by Federal Decree-Law 33 of 2021 and Cabinet Resolution 1 of 2022, supervised by MOHRE. Premiums are calculated on your basic wage only, not your gross salary. Housing, transport, utility and similar allowances are excluded.
To find your hourly wage, divide your basic monthly salary by 30 days, then by 8 working hours. That is a fixed divisor of 240 hours a month, so you never use the actual number of working days in the month.
Formula: Basic hourly wage = Basic monthly salary / 240. Overtime pay = Basic hourly wage x rate x overtime hours.
UAE overtime rates
| When overtime is worked | Statutory premium | Effective rate |
|---|---|---|
| Daytime overtime, 4am to 10pm on a working day | +25% | 125% of hourly wage |
| Night overtime, 10pm to 4am (non-shift staff) | +50% | 150% of hourly wage |
| Weekly rest day | +50% or a day off in lieu | 150% of daily wage (or 1 day off) |
| Official public holiday | +50% plus a day off in lieu | up to 250% aggregate if no day off is given |
Rates come from Article 19 of Federal Decree-Law 33 of 2021. Statutory rates are legal minimums under Article 28. An employer can pay more, but a contract clause that pays less is invalid.
Overtime is the line finance queries most, because the hours arrive late and the rate depends on when they were worked. Work it out once, on the approved hours, and the payslip stops being a conversation.
Shift workers and the night rate
The 50% night premium does not apply automatically to shift workers. Under Article 19(3), staff on rostered shifts, such as healthcare, security, hospitality and manufacturing teams, are excluded from the mandatory night rate. When they work overtime beyond their assigned shift at night, it is paid at the 125% daytime rate unless their contract sets a higher figure.
The limits
Overtime limits, rest breaks and Ramadan
UAE law caps how much overtime is allowed, not just how it is paid.
| Limit | Standard | Ramadan |
|---|---|---|
| Standard working day | 8 hours | 6 hours |
| Standard working week | 48 hours | 36 hours |
| Overtime trigger | after the 8th hour | after the 6th hour |
| Maximum overtime per day | 2 hours | 2 hours |
| Maximum total hours, rolling 3 weeks | 144 hours | 144 hours |
Employees may not work more than 5 hours without a break, and total rest, meal and prayer breaks must be at least 1 hour a day (Article 18). Breaks and commute time do not count as working hours. During Ramadan the 2-hour daily overtime cap still applies, so the longest legal day is 8 hours. The Ramadan reduction applies to all private-sector staff, fasting or not, with no cut in pay.
Who is covered
Who is entitled to overtime
Not everyone qualifies. Article 15(4) of Cabinet Resolution 1 of 2022 exempts genuine senior roles. MOHRE and the courts look at real authority, not the job title. To be exempt, a person must hold independent power to hire, discipline, dismiss, assign work or manage a budget.
| Role | Overtime entitlement |
|---|---|
| Directors and board chairpersons | Exempt |
| Supervisors with genuine employer authority | Exempt |
| Mid-level managers without independent authority | Eligible |
| Technical, engineering and admin staff | Eligible |
| Maritime crews and seafarers | Exempt (separate maritime rules) |
Free zones
Free zones: DIFC and ADGM are different
Mainland and standard free zones follow the federal law above. The two financial free zones do not.
- DIFC (DIFC Employment Law 2 of 2019): a 48-hour week cap, but no statutory overtime multiplier. Overtime pay is whatever the contract says.
- ADGM (ADGM Employment Regulations 2019): non-managerial staff over 48 hours a week must get either overtime pay or time off in lieu.
If you work in DIFC or ADGM, check your contract, not the federal rates.
Stop rebuilding overtime by hand every month
Tipsoi reads the approved hours from attendance and applies the UAE rates, so payroll gets one figure per employee.
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Examples
Worked examples
All examples use a basic salary of AED 6,000 a month, so the hourly wage is 6,000 / 240 = AED 25.
Example A: a standard month
12 hours of daytime overtime plus 6 hours of night overtime (non-shift worker).
| Type | Rate | Hours | Pay |
|---|---|---|---|
| Daytime overtime | 125% (AED 31.25/hr) | 12 | AED 375.00 |
| Night overtime | 150% (AED 37.50/hr) | 6 | AED 225.00 |
| Total overtime | 18 | AED 600.00 |
Example B: rest day and public holiday
8 hours on a weekly rest day paid in cash, and 8 hours on a public holiday where a day off in lieu is given.
| Type | Rate | Hours | Pay |
|---|---|---|---|
| Rest day (cash) | 150% (AED 37.50/hr) | 8 | AED 300.00 |
| Public holiday (day off given) | +50% uplift (AED 12.50/hr) | 8 | AED 100.00 + 1 paid day off |
Example C: Ramadan
The standard day is 6 hours. The employee works 8 hours a day for 10 days, so 2 overtime hours a day, 20 daytime overtime hours in total.
20 hours x 125% x AED 25 = AED 625.00.
Enforcement
How overtime is enforced
Private-sector wages are paid through the Wage Protection System (WPS). Since 1 June 2026, wages for the previous month are due on the first day of each month, and at least 85% of total wages must arrive on time. Late payers lose new work permits from day 5, and repeat offenders face fines from day 11.
- MOHRE can issue a binding decision on wage claims up to AED 50,000 without going to court, under Federal Decree-Law 9 of 2024.
- Employees have 2 years after leaving to bring a wage claim, so payroll records should be kept and payslips should itemise basic pay, allowances and each type of overtime.
Questions
Frequently asked questions
How is overtime calculated in the UAE?
Hourly wage is basic monthly salary divided by 240 (30 days x 8 hours). Daytime overtime is 125% of that wage, and night, rest-day or public-holiday overtime is 150%, under Article 19 of Federal Decree-Law 33 of 2021. Only basic pay is used, not allowances.
What is the overtime rate at night?
Night overtime between 10pm and 4am is 150% of the hourly wage for non-shift staff. Rostered shift workers are excluded from this rate and are paid 125% unless their contract says more.
Is there a limit on overtime?
Yes. Overtime is capped at 2 hours a day, and total working time cannot exceed 144 hours in any rolling 3-week period.
How does Ramadan change overtime?
The standard working day drops to 6 hours during Ramadan for all private-sector staff, so hours beyond the 6th count as overtime. The 2-hour daily overtime cap still applies.
Do managers get overtime?
Only if they lack genuine employer authority. Directors and supervisors with real power to hire, discipline or dismiss are exempt. A managerial job title alone does not remove the right to overtime.
Do DIFC and ADGM follow these rates?
No. DIFC has no statutory overtime multiplier, so overtime is contractual. ADGM requires overtime pay or time off in lieu for non-managers over 48 hours a week.
What if my employer does not pay overtime?
You can file a claim with MOHRE, which can issue a binding order for wage arrears up to AED 50,000. Claims can be brought up to 2 years after leaving the job.
Keep reading
Sources: Federal Decree-Law 33 of 2021 (Articles 15, 17, 18, 19, 21, 28), Cabinet Resolution 1 of 2022, Federal Decree-Law 9 of 2024, Ministerial Resolution 340 of 2026, MOHRE. This guide is general information, not legal advice. Confirm your entitlements with MOHRE or a qualified advisor.