# 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.

- URL: https://www.pyalm.com/blog/uae-overtime-pay-rules
- Author: Fadhil Abdulla
- Category: Pyalm Books
- Published: 2026-06-21
- Updated: 2026-06-21

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## 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](https://www.pyalm.com/free-tools/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](https://www.pyalm.com/books), and budget headcount with the [Employee Cost Calculator](https://www.pyalm.com/free-tools/employee-cost-calculator).

[Use the free Overtime Calculator](https://www.pyalm.com/free-tools/overtime-calculator) | [Employee Cost Calculator](https://www.pyalm.com/free-tools/employee-cost-calculator)