UAE Overtime Pay: How to Calculate It Correctly
Overtime in the UAE is paid at a premium on the basic hourly rate. Here's how to find the hourly rate, apply the right multiplier, and calculate OT pay.
How overtime works
Overtime is paid at a premium on top of an employee's normal hourly rate. To calculate it you first need the hourly rate, then a multiplier set by labour law or contract. The free Overtime Calculator handles both.
Step 1: the hourly rate
Hourly rate = monthly basic salary ÷ standard monthly hours. If basic is AED 9,000 and standard hours are 240 a month, the hourly rate is AED 37.50.
Step 2: the multiplier
UAE private-sector overtime is commonly paid at 1.25× the basic hourly rate, rising to 1.5× for work performed between 10pm and 4am or on rest days. Always confirm the exact terms in the contract and current labour law.
Step 3: overtime pay
Overtime pay = hourly rate × multiplier × overtime hours. At AED 37.50, a 1.5× multiplier, and 20 hours, that's AED 1,125.
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