Pyalm Books
By Fadhil Abdulla

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.

Track payroll cleanly alongside the rest of your accounts with Pyalm Books, and budget headcount with the Employee Cost Calculator.

Use the free Overtime Calculator | Employee Cost Calculator

Keep reading

More from Pyalm

Aug 1, 2026

Invoice vs Delivery Note: What Each One Actually Does

They often carry the same line items, but only one of them asks for money and only one of them proves the goods arrived. Here is where each document belongs.

Aug 1, 2026

Quotation vs Proforma Invoice: Which One Should You Send?

Both go out before the sale and neither is a tax invoice — but they make very different promises. Here is when each one is the right document.

Aug 1, 2026

Credit Note vs Debit Note: Which One Corrects Your Invoice?

One reduces what a customer owes, the other increases it. Getting the direction wrong quietly misstates your VAT return — here is how to tell them apart.

Aug 1, 2026

Invoice vs Receipt: The Difference That Trips Up Most Businesses

An invoice asks for money. A receipt confirms it arrived. Sending the wrong one — or only one — is how businesses lose track of who has actually paid.

Aug 1, 2026

Purchase Order vs Purchase Invoice: Controlling What You Spend

A purchase order is what you agreed to buy. A purchase invoice is what your supplier says you owe. The gap between the two is where overspending hides.

Aug 1, 2026

Tax Invoice vs Simplified Tax Invoice: Which Can You Issue?

UAE VAT allows a shorter invoice in specific situations only. Issuing the simplified version when you were not entitled to leaves your customer unable to recover the VAT.

Get UAE VAT & E-Invoicing Ready

Pyalm Books handles VAT, PINT AE e-invoices, and FTA returns for Dubai businesses — no extra development cost.

Start free on Pyalm Books Learn about Pyalm Books Log in