{"id":24784,"date":"2023-12-01T07:24:42","date_gmt":"2023-12-01T07:24:42","guid":{"rendered":"https:\/\/www.bayzat.com\/blog\/?p=24784"},"modified":"2025-02-03T14:12:35","modified_gmt":"2025-02-03T14:12:35","slug":"overtime-calculation-uae","status":"publish","type":"post","link":"https:\/\/www.bayzat.com\/blog\/overtime-calculation-uae\/","title":{"rendered":"Overtime Calculation in UAE"},"content":{"rendered":"

The payroll function of any company is crucial, and the calculation of overtime pay before processing employee payments is an essential aspect of it. In the United Arab Emirates (UAE), there are specific laws and regulations that govern how employers should handle overtime pay for their employees. <\/span><\/p>\n

However, this process can often be confusing and complicated for employers to follow. Therefore, it is essential to understand the rules and regulations regarding overtime calculations in UAE. In this article, you will learn everything you need to know about overtime calculation in the UAE. We will also provide you with tips for accurately calculating and managing overtime pay. <\/span><\/p>\n

How to Calculate Overtime in the UAE? <\/b><\/h2>\n

Under the UAE Labour Law, overtime is calculated based on basic salary in all cases. The formula for normal overtime is calculated as: \u201cbasic salary \u00d7 12\/365\/8 \u00d7 total overtime hours \u00d7 1.25 = total overtime pay\u201d. However, if overtime is performed between 10 pm and 4 am, the rate increases to 50%. <\/span><\/p>\n

What Does Overtime Mean?<\/b><\/h2>\n

Overtime refers to the extra time employees devote to work activities beyond their regular working hours. Under the Labour Law, these additional hours must be compensated at a higher rate than conventional working hours.<\/span><\/p>\n

The purpose of overtime is to provide fair compensation for employees’ extra efforts and to discourage employers from exploiting their workforce. For instance, in <\/span>Article 17 of the <\/span>Federal Decree Law No. 33 of 2021<\/span><\/a>, <\/span>the standard working hours of an employee in the UAE comprises 8 hours per day or 48 hours per week. If an employee ends up working more than their normal working hours, it is considered as overtime, and they are entitled to overtime payment for the extra hours worked. However, the working hours for individuals employed in trade, hotels, and cafeteria security may be extended to nine hours per day. <\/span><\/p>\n

Types of Overtime<\/b><\/h2>\n

Overtime can be classified into two categories:<\/span><\/p>\n