If you have ever worked extra hours in the UAE and wondered whether your pay was correct, you are asking the right question. How Overtime Is Calculated follows a fixed legal formula under UAE labour law, and once you understand it, you can check any overtime figure on your own payslip. Many employees simply trust whatever their employer pays, which is exactly how mistakes — and underpayments — go unnoticed for months.
Overtime is not a bonus or a gesture of goodwill. It is a legal right for most private-sector employees, calculated from your basic wage at set premium rates. This guide walks through the formula step by step, the rates for daytime, night and public-holiday work, the maximum limits, and the common mistakes that cost employees money.
Quick Answer
UAE overtime is calculated from your hourly rate based on your basic wage (not your total salary with allowances). Daytime overtime is paid at 125% of that hourly rate, and overtime worked between 10pm and 4am is paid at 150%. Overtime should not exceed 2 extra hours per day, and total working hours must not pass 144 hours in any three-week period.
How Overtime Is Calculated: The Step-by-Step Formula
The calculation itself is simple once you know the three inputs: your basic wage, your normal hours, and which rate applies. Here is how employers — and you — should work it out.
Step 1: Find your hourly rate from your basic wage
Take your monthly basic wage and divide it by the standard number of working days and hours. The standard method used across the UAE is:
Hourly rate = Monthly basic wage ÷ 30 days ÷ 8 hours
For example, if your basic wage is AED 6,000 per month:
6,000 ÷ 30 ÷ 8 = AED 25 per hour
Notice this uses your basic wage only, not your total salary. Housing, transport and other allowances are excluded from the overtime calculation. This is the single most common source of disputes — if your contract lists a basic wage of AED 6,000 but your total package is AED 10,000, the overtime rate is calculated from the AED 6,000 figure. It is worth checking your employment contract to confirm exactly what your basic wage is.
Step 2: Identify which overtime hours qualify
Not every extra minute counts. Overtime is work beyond your normal hours — normally 8 hours a day or 48 hours a week in the UAE private sector. Anything up to that threshold is regular working time; anything past it is overtime. What counts as working time matters here, because breaks, commute time and standby periods do not always add to your hours.
Step 3: Apply the correct rate
Multiply each overtime hour by the applicable premium:
- Daytime overtime: hourly rate × 1.25
- Overtime between 10pm and 4am: hourly rate × 1.5
Continuing the example: the employee earning AED 25 per hour who works 3 extra daytime hours earns 3 × 25 × 1.25 = AED 93.75 in overtime pay for those hours. One extra hour worked at 11pm earns 1 × 25 × 1.5 = AED 37.50.
The Legal Overtime Rates at a Glance
| Situation | Rate (of basic hourly wage) |
|---|---|
| Overtime outside the 10pm–4am window | At least 125% |
| Overtime between 10pm and 4am | At least 150% |
| Work required on a public holiday | 150% of basic hourly wage, or a compensatory day off |
| Work on a weekly rest day (with consent, up to two consecutive rest days) | Paid or compensated per the labour law’s rest-day provisions |
Shift workers who routinely work nights as part of their schedule are treated differently — the night premium applies to overtime hours falling between 10pm and 4am, not to ordinary scheduled night-shift hours. If your shift pattern is already your normal working arrangement, those hours are paid at your normal rate unless they exceed your standard hours.
What the Law Considers Overtime Hours
The baseline in the UAE is 8 working hours per day and 48 per week. Hours beyond that are overtime, with a few important nuances:
- Ramadan: during the holy month, daily working hours are reduced by two hours for fasting employees, so overtime starts at 6 hours instead of 8.
- Employer-provided transport: time spent in the employer’s transport to and from the workplace counts as working time and adds to your hours.
- Rest days: every employee is entitled to at least one paid rest day per week. If you agree to work on it, the extra pay rules apply.
- Government roles, armed forces and domestic workers follow separate regulations, not these rules — who is eligible for overtime explains the exemptions in detail.
For a fuller picture, start from the standard 8-hour day before applying the overtime rates.
Maximum Overtime Limits You Should Know
The law sets ceilings so overtime stays exceptional rather than routine:
- 2 hours per day — the employer may require overtime, but it should not exceed 2 extra hours in a day.
- 144 hours in three weeks — cumulative working time cannot exceed this figure.
- Right to refuse extended rest-day work — an employee may refuse to work more than two consecutive rest days.
If your employer regularly demands more than these limits, that is not simply “busy season” — it is a compliance problem. Employees can raise such issues with the Ministry of Human Resources and Emiratisation (MOHRE). Keeping your own records is essential: note down your start and finish times daily, in a format that would hold up in a dispute.
Common Calculation Mistakes That Cost You Money
1. Using gross salary instead of basic wage
The most frequent payroll error. Some employers calculate overtime on the basic wage correctly; others quietly use a smaller figure, or include allowances inconsistently. Always recompute with the basic wage shown in your contract.
2. Assuming the night rate starts at 9pm
A surprising number of online guides and payroll tools place the night premium at 9pm. The statute sets the enhanced 150% rate for hours between 10pm and 4am. If your HR system uses 9pm, those 9–10pm hours are being over- or under-paid depending on the direction of the error — check which way it goes.
3. Forgetting that allowances are excluded
Because overtime is based on basic wage alone, employees with large allowance components sometimes feel the overtime rate is “low”. It is legally correct — but it is also why negotiating a higher basic wage, not just a bigger package, matters for overtime-heavy roles.
4. Mixing up scheduled night shifts and overtime
If you are a shift worker whose normal schedule includes nights, those hours are regular work, not overtime at 150%. The premium applies only to hours beyond your normal schedule that fall in the 10pm–4am window.
Checking Your Overtime on the Payslip
Your payslip should list overtime hours and the overtime amount separately. A quick check takes two minutes:
- Find your basic wage (or the basic component) on the payslip.
- Divide by 30, then by 8, to get your hourly rate.
- Multiply your listed overtime hours by the hourly rate and the correct premium (1.25 or 1.5).
- Compare the result with what was actually paid.
If the numbers do not match, raise it with HR or your employer in writing first — many mismatches are genuine payroll errors. If you need official documentation of your earnings for a bank loan or visa, a salary certificate confirms your basic salary and total package in one letter. For a deeper understanding of pay structure terms, our explainer on overtime payment rules covers when and how overtime must actually be paid.
Frequently Asked Questions (FAQs)
Is overtime calculated on basic salary or total salary?
On the basic wage only. Allowances such as housing, transport and food are excluded from the calculation.
What is the overtime rate for night hours in the UAE?
Overtime worked between 10pm and 4am is paid at 150% of the basic hourly wage — a 50% premium over the normal rate.
How many overtime hours am I allowed to work?
Overtime should not exceed 2 hours per day, and total working hours must stay within 144 hours per three weeks.
Can my employer refuse to pay overtime?
No, for employees covered by the labour law. Overtime pay at the legal rates is a statutory right, not something the employer can opt out of — although your contract cannot reduce the legal minimum, it can offer better terms.
Does overtime apply during Ramadan?
Yes. During Ramadan, normal working hours are reduced by two hours for fasting employees, so overtime begins after 6 hours instead of 8. The same rates apply.
What if I work overtime on a public holiday?
Work on an official public holiday must be compensated at 150% of the basic hourly wage, or the employer can grant a compensatory day off instead.
The Bottom Line
How Overtime Is Calculated comes down to a simple, repeatable formula: basic wage ÷ 30 ÷ 8 gives your hourly rate, then add 25% for daytime overtime and 50% for hours between 10pm and 4am. Memorise your hourly rate, keep your own record of extra hours, and check every payslip — two minutes of arithmetic is all it takes to make sure you are being paid what the law requires. If your employer is not paying overtime at all, that is a dispute worth raising with MOHRE.
Last Updated: 8 October 2026
About the author: Zaviyar Sultan is a UAE-focused writer at Paxi, covering driving, visas, banking, insurance and everyday UAE life. His guides are researched from official UAE government and regulator sources and updated regularly.
Paxi is an independent informational website, not affiliated with the UAE government or any agency mentioned; content is general information only, not legal, immigration or financial advice; verify critical details with official sources before acting.