Overtime Calculation Under UAE Labour Law: The 125% and 150% Rules Explained

How the 125% and 150% overtime rates work under Federal Decree-Law No. 33 of 2021 — with step-by-step formulas, worked examples, and exemptions.

If you work beyond 8 hours a day or 48 hours a week in the UAE private sector, your employer owes you overtime pay — at a legally mandated premium. The rate depends on when the extra hours fall: 125% of your basic hourly wage for daytime overtime, or 150% for night hours and rest-day work. Getting this wrong is one of the most common payroll disputes filed with MOHRE (Ministry of Human Resources and Emiratisation). This guide breaks down exactly how overtime is calculated, who qualifies, and what to do if your employer doesn’t pay.

The rules apply to all private-sector employees across the UAE mainland, whether on limited-term or part-time labour contracts. Employees in the DIFC and ADGM free zones follow separate employment regulations specific to those jurisdictions.

Key Takeaways

• Standard working hours are 8 per day / 48 per week under Article 17 of Federal Decree-Law No. 33 of 2021. Any work beyond that is overtime.
• Regular overtime (daytime): employer must pay at least 125% of the basic hourly wage — normal rate plus 25%.
• Night overtime (10 PM – 4 AM): at least 150% of the basic hourly wage — normal rate plus 50%.
• Rest-day or public-holiday work: either a compensatory day off plus 50% premium, or 150% pay if no day off is granted.
• Overtime is calculated on basic salary only — housing, transport, and other allowances are excluded.
• Maximum overtime: 2 extra hours per day (Article 19). Total working hours must not exceed 144 hours over any three-week period.
• During Ramadan, working hours reduce by 2 hours daily for all employees — overtime kicks in after 6 hours, not 8.
• Senior executives, board members, and supervisory staff with employer-level authority are exempt from overtime provisions under Cabinet Resolution No. 1 of 2022.

What Counts as Overtime Under UAE Labour Law

Overtime is any work performed beyond the legally prescribed standard working hours, provided it is requested or approved by the employer. Under Article 17 of the UAE Labour Law, the standard is 8 hours per day or 48 hours per week for most private-sector roles. If you work 9 hours on a Tuesday, that extra hour is overtime.

Certain sectors — hotels, cafeterias, security services, and retail — may operate 9-hour workdays with MOHRE approval. However, weekly hours must still average no more than 48 over a three-week period. Even in these sectors, anything beyond the agreed daily schedule constitutes overtime.

Break time does not count toward working hours. Employees who work five consecutive hours are entitled to at least one hour of rest, and this break is excluded from total hour calculations.

Ramadan Working Hours

During Ramadan, working hours are reduced by 2 hours daily for all employees, regardless of religion. This brings the daily standard to 6 hours and the weekly standard to 36 hours. Overtime during Ramadan starts after the 6th hour — not the 8th. An employee who works 8 hours during Ramadan has worked 2 hours of overtime.

Overtime Pay Rates: The 125% and 150% Rules

The UAE Labour Law sets three distinct overtime compensation tiers. These are legal minimums — an employer may pay more, but never less.

Scenario	Rate	What It Means	Legal Basis
Overtime on a regular working day (before 10 PM)	125% of basic hourly wage	Normal hourly rate + 25% premium	Article 19(2), FDL 33/2021
Overtime between 10 PM and 4 AM	150% of basic hourly wage	Normal hourly rate + 50% premium	Article 19(3), FDL 33/2021
Work on a rest day or public holiday	Compensatory day off + 50% premium, OR 150% pay if no day off given	Either time off + extra pay, or higher cash-only compensation	Article 19(4), FDL 33/2021

The night-shift premium (150%) does not apply to employees whose regular contracted work pattern is a night shift. If you were hired specifically for permanent night-shift work, the 150% rate applies only if your employment contract or company policy explicitly provides for it.

How to Calculate Overtime Pay: Step-by-Step Formula

Overtime pay is calculated exclusively on basic salary. This is the fixed monthly amount stated in your employment contract before any allowances (housing, transport, phone, etc.) are added. If your total package is AED 10,000 but your basic salary is AED 6,000, all overtime calculations use AED 6,000.

The law assumes a 30-day month and an 8-hour working day for all calculations, regardless of the actual number of days in the calendar month.

Step 1: Calculate Your Hourly Rate

Daily wage = Basic monthly salary ÷ 30

Hourly wage = Daily wage ÷ 8

Step 2: Apply the Overtime Multiplier

Regular overtime pay per hour = Hourly wage × 1.25

Night / rest-day overtime pay per hour = Hourly wage × 1.50

Step 3: Multiply by Overtime Hours Worked

Total overtime pay = Overtime rate × Number of overtime hours

Worked Examples

Example 1: Regular Daytime Overtime

Ahmed has a basic salary of AED 6,000/month. He worked 10 hours of overtime during regular working hours in one month.

Calculation Step	Formula	Result
Daily wage	AED 6,000 ÷ 30	AED 200.00
Hourly wage	AED 200 ÷ 8	AED 25.00
Overtime hourly rate (125%)	AED 25 × 1.25	AED 31.25
Total overtime pay	AED 31.25 × 10 hours	AED 312.50

Ahmed receives AED 312.50 on top of his regular monthly salary for that month.

Example 2: Night Overtime (10 PM – 4 AM)

Sara has a basic salary of AED 8,000/month. She worked 6 overtime hours between 10 PM and 4 AM during the month.

Calculation Step	Formula	Result
Daily wage	AED 8,000 ÷ 30	AED 266.67
Hourly wage	AED 266.67 ÷ 8	AED 33.33
Night overtime hourly rate (150%)	AED 33.33 × 1.50	AED 50.00
Total overtime pay	AED 50.00 × 6 hours	AED 300.00

Sara receives AED 300.00 additional overtime pay that month.

Example 3: Work on a Rest Day (No Compensatory Day Off)

Omar has a basic salary of AED 5,000/month. His employer asked him to work a full 8-hour shift on his rest day (Friday) and did not grant a substitute day off.

Calculation Step	Formula	Result
Daily wage	AED 5,000 ÷ 30	AED 166.67
Hourly wage	AED 166.67 ÷ 8	AED 20.83
Rest-day hourly rate (150%)	AED 20.83 × 1.50	AED 31.25
Total rest-day pay	AED 31.25 × 8 hours	AED 250.00

Omar receives AED 250.00 on top of his regular salary. Had his employer given him a substitute day off instead, Omar would still receive the 50% premium for the hours worked (AED 20.83 × 0.50 × 8 = AED 83.33) plus the compensatory rest day.

Example 4: Overtime During Ramadan

Fatima has a basic salary of AED 4,500/month. During Ramadan, she worked 8 hours on a given day — that is 2 hours beyond the reduced 6-hour Ramadan limit.

Calculation Step	Formula	Result
Daily wage	AED 4,500 ÷ 30	AED 150.00
Hourly wage	AED 150 ÷ 8	AED 18.75
Overtime hourly rate (125%)	AED 18.75 × 1.25	AED 23.44
Total Ramadan overtime pay	AED 23.44 × 2 hours	AED 46.88

Fatima receives AED 46.88 overtime pay for those 2 extra hours.

Maximum Overtime Limits

The law sets clear caps on how much overtime an employer can require:

Limit	Rule	Legal Basis
Daily overtime cap	Maximum 2 hours per day	Article 19, FDL 33/2021
Three-week total hours cap	Total working hours (regular + overtime) must not exceed 144 hours over any 3-week period	Cabinet Resolution No. 1 of 2022
Maximum daily working hours	10 hours (8 regular + 2 overtime)	Article 19, FDL 33/2021

Employers may exceed the 2-hour daily cap only in exceptional circumstances — specifically to prevent loss, damage, or a serious accident, or to address urgent repair needs. In such cases, the employer must still pay the applicable overtime rate and document the justification.

Who Is Exempt From Overtime Pay

Not every employee qualifies for overtime compensation. Clause 4 of Article 15 in Cabinet Resolution No. 1 of 2022 exempts the following categories from maximum working-hour provisions (and therefore from overtime pay):

Exemption Category	Who It Covers
Board-level roles	Chairpersons and members of boards of directors
Senior supervisory positions	Persons occupying supervisory positions that vest in them the powers of the employer (e.g., general managers, CEOs)
Maritime workers	Crews of naval vessels and seafarers with special service conditions
Shift workers	Employees in continuous-shift operations, provided average working hours do not exceed 56 hours per week

The key test for the “supervisory positions” exemption is whether the role genuinely carries employer-level authority — such as the power to hire, terminate, or make binding business decisions. A team leader who supervises a small group while performing regular duties typically still qualifies for overtime. If you are unsure whether your role is exempt, check your employment contract and, if needed, request clarification from MOHRE.

Part-time employees are generally not entitled to overtime pay unless their contract specifically provides for it. Since part-time work hours are contractually reduced, any additional hours are usually compensated at the standard rate unless the contract states otherwise.

Common Mistakes in Overtime Calculation

Using Gross Salary Instead of Basic Salary

This is the most frequent error. Overtime must be calculated on basic salary alone. If your total package is AED 12,000 (AED 7,000 basic + AED 3,000 housing + AED 2,000 transport), only AED 7,000 is used. Using gross salary inflates the overtime figure and creates disputes during audits or WPS (Wage Protection System) salary verification.

Using Actual Calendar Days Instead of 30

The law standardises a month as 30 days for calculation purposes, regardless of whether the month has 28, 29, or 31 calendar days. Always divide by 30.

Rounding Too Early

Keep decimal values through intermediate steps and round only the final overtime amount. Rounding hourly or daily rates before multiplying can produce incorrect totals, especially over many overtime hours.

Ignoring Ramadan Adjustments

During Ramadan, the daily threshold drops to 6 hours. An employee who works a standard 8-hour day during Ramadan has 2 hours of overtime — some payroll systems miss this if not configured for the Ramadan schedule.

Not Documenting Overtime Approval

Overtime should be pre-approved and documented. Hours worked beyond the regular schedule without employer request or approval may not automatically qualify as compensable overtime. Employees should keep their own records of extra hours as a safeguard.

What to Do If Your Employer Doesn’t Pay Overtime

If your employer fails to compensate you for legitimate overtime hours, you have the right to file a labour complaint with MOHRE. The process works as follows:

1. Raise the issue directly with your employer or HR department first, ideally in writing.

2. If unresolved, file a complaint through the MOHRE app, website, or by calling the hotline (600 590000). You will need your labour contract, salary slips, and any evidence of overtime hours worked.

3. MOHRE will attempt to mediate between you and the employer. If mediation fails, the case can be referred to the labour court.

Employers who fail to pay wages (including overtime) through the Wage Protection System may face administrative penalties, including fines and suspension of work permit issuance.

Overtime for Special Work Patterns

DIFC and ADGM Employees

Employees in the Dubai International Financial Centre (DIFC) and Abu Dhabi Global Market (ADGM) are governed by their respective employment regulations — not by Federal Decree-Law No. 33 of 2021. Overtime rules, rates, and exemptions may differ. Check the DIFC Employment Law No. 2 of 2019 or the ADGM Employment Regulations 2019 for the applicable provisions.

Free Zone Employees (Non-DIFC/ADGM)

Most UAE free zones (DMCC, IFZA, JAFZA, Meydan, SHAMS, etc.) follow the federal labour law for employee rights including overtime. The employment contract is still registered through MOHRE or the relevant free zone authority, and the 125%/150% rules apply in the same way as for mainland employees.

Domestic Workers

Domestic workers are governed by a separate law — Federal Decree-Law No. 9 of 2022 Concerning Domestic Workers. The overtime rules under FDL 33/2021 do not apply to domestic workers. Their working hours, rest periods, and compensation terms are set out in the specific domestic worker contract and the provisions of FDL 9/2022.

How Overtime Relates to End-of-Service Gratuity

Overtime pay is not included in the end-of-service gratuity calculation. Gratuity is calculated solely on basic salary — the same base used for overtime calculations but without the overtime premium itself. If you regularly earn overtime, this will not increase your final gratuity amount upon leaving the company.

Quick-Reference Formula Card

What You Need	Formula
Hourly wage	Basic monthly salary ÷ 30 ÷ 8
Regular overtime (per hour)	Hourly wage × 1.25
Night overtime (per hour)	Hourly wage × 1.50
Rest-day/holiday overtime (per hour)	Hourly wage × 1.50 (if no substitute day off given)
Total overtime pay	Overtime hourly rate × number of overtime hours

FAQ

Is overtime calculated on basic salary or total salary?

Overtime is calculated exclusively on basic salary. Allowances for housing, transport, phone, and other benefits are excluded. If your employment contract shows a basic salary of AED 5,000 and total compensation of AED 8,000, overtime calculations use only the AED 5,000 figure. This is specified in Articles 19–21 of Federal Decree-Law No. 33 of 2021, which reference “basic wage” as the calculation base.

Can my employer force me to work overtime?

An employer may request overtime work, but it must generally be agreed upon. The law limits routine overtime to 2 extra hours per day. Employers can require overtime without prior agreement only in emergency situations — for instance, to prevent imminent loss, damage, or a serious accident. Consistently forcing overtime beyond legal limits or without proper compensation can form the basis of a labour complaint with MOHRE.

What happens if I work on a public holiday?

Your employer must either grant you a substitute day off and pay a 50% premium on top of your basic hourly wage for the hours worked, or — if no substitute day off is provided — pay you at 150% of your basic hourly wage for those hours. The choice between the two options rests with the employer, but the employee must be compensated through one of these mechanisms.

Does overtime apply during Ramadan?

Yes. Working hours during Ramadan are reduced by 2 hours daily for all private-sector employees. This means the standard day becomes 6 hours. Any work beyond 6 hours during Ramadan qualifies as overtime at the same 125%/150% rates. This reduction applies regardless of the employee’s religion and is mandated by Article 17(4) of the Labour Law and Article 15(2) of Cabinet Resolution No. 1 of 2022.

Are managers entitled to overtime pay in the UAE?

Managers and senior executives in supervisory positions that carry employer-level authority — such as the power to hire, fire, or make binding company decisions — are exempt from overtime provisions under Clause 4 of Article 15, Cabinet Resolution No. 1 of 2022. However, mid-level team leaders and supervisors who primarily perform operational work alongside their team typically still qualify for overtime. The exemption depends on actual authority held, not job title alone.

How do I calculate overtime if I work both day and night hours?

Split the overtime hours into two buckets. Hours worked between 6 AM and 10 PM (or your regular day schedule) are paid at 125%. Hours falling between 10 PM and 4 AM are paid at 150%. Calculate each bucket separately and add the results. For example, if you worked 3 extra hours — 2 before 10 PM and 1 after 10 PM — you would calculate 2 hours at 1.25 and 1 hour at 1.50 of your hourly wage.

Do part-time employees get overtime in the UAE?

Part-time employees are generally not entitled to overtime pay unless their employment contract specifically includes overtime provisions. Since part-time work inherently involves reduced hours, additional hours are typically treated as standard-rate work. Employers should define working-hour limits and compensation clearly in the part-time contract to avoid ambiguity.

Can my employer offer time off instead of overtime pay?

For rest-day and holiday work, yes — the law specifically permits employers to grant a compensatory day off plus the 50% premium instead of paying the full 150% cash rate. For regular weekday overtime, however, the standard compensation is monetary at the 125% or 150% rate. Any agreement to substitute regular overtime pay with time off should be documented in writing and agreed upon by both parties.

What is the maximum overtime I can work per day?

Under Article 19 of the Labour Law, the maximum is 2 hours of overtime per day, making a total working day of 10 hours. This limit can be exceeded only in exceptional circumstances (emergencies, preventing loss or damage) and must be justified and documented by the employer. Total working hours must not exceed 144 hours over any rolling three-week period.

Does overtime pay count toward my end-of-service gratuity?

No. End-of-service gratuity is calculated on basic salary only and does not include overtime earnings, bonuses, or allowances. Even if you regularly work overtime throughout your employment, the gratuity formula uses your final basic salary multiplied by the applicable rate (21 days per year for the first five years, 30 days per year thereafter).

Official Sources

This article references information from the following UAE authorities and legal texts:

• UAE Government Portal — Working Hours and Overtime
• Federal Decree-Law No. 33 of 2021 — Full Text (MOHRE)
• Cabinet Resolution No. 1 of 2022 — Executive Regulations (UAE Legislation Portal)
• UAE Government Portal — Employment Laws and Regulations
• MOHRE — Ministry of Human Resources and Emiratisation
• MOHRE — Working Hours E-Consultation

Overtime rules, working-hour regulations, and enforcement practices are subject to change. Always verify current requirements with MOHRE or the relevant free zone authority before relying on this information for payroll or legal decisions.