How overtime is calculated in UAE
Hourly wage = basic ÷ 30 ÷ 8. Overtime is limited to two hours a day except where necessary. The 150% night rate does not apply to shift workers. Managers and supervisors may be exempt by contract. During Ramadan the working day is reduced by two hours for all employees.
Worked example
AED 6,000: hourly = 6,000 ÷ 30 ÷ 8 = 25. Ten hours of weekday overtime (125%) = 10 × 25 × 1.25 = AED 312.5.
Overtime rates across the GCC
| Country | Weekday | Night | Rest day / holiday | Hourly basis |
|---|---|---|---|---|
| UAE | 125% | 150% | 150% | basic ÷ 30 ÷ 8 |
| Qatar | 125% | 150% | 150% | basic ÷ 30 ÷ 8 |
| Saudi Arabia | 150% | 150% | 150% | basic ÷ 30 ÷ 8 |
| Oman | 125% | 150% | 200% | basic ÷ 30 ÷ 9 |
| Bahrain | 125% | 150% | 150% | full ÷ 30 ÷ 8 |
| Kuwait | 125% | — | 150% / 200% | full ÷ 26 ÷ 8 |
Frequently asked questions
What is the overtime rate in UAE?
Weekday overtime (125%); Night 10pm–4am (150%); Rest day — if no day off in lieu (150%). Legal basis: Federal Decree-Law 33/2021, Art. 19.
How do I calculate my hourly rate for overtime in UAE?
Monthly basic salary ÷ 30 days ÷ 8 hours. Example: AED 6,000 → AED 25 per hour; one weekday overtime hour = AED 31.25.
Is overtime calculated on basic or gross salary in UAE?
On basic salary. Allowances are excluded, which is why the overtime rate often looks low relative to total pay.
Is there a limit on overtime hours in UAE?
Yes — normally 2 hours a day. See the notes above for annual limits and exceptions.
Can my employer give time off instead of overtime pay?
For work on the weekly rest day most GCC laws allow a substitute day off (sometimes plus a premium). For ordinary weekday overtime the law requires payment; time-off-in-lieu arrangements need your agreement.
Are managers entitled to overtime?
Most GCC labour laws allow employers to exclude senior managerial or supervisory staff from working-hours provisions by contract or ministerial decision. Check your contract and job classification.
Is overtime pay subject to tax or social insurance?
There is no personal income tax in the GCC. For nationals, overtime is generally excluded from the pensionable wage used for GOSI/PASI/GRSIA contributions.