Introduction
Overtime remains one of the most important aspects of employee rights in the UAE. Thousands of employees work beyond their regular hours, whether in retail, construction, hospitality, or corporate roles. Understanding overtime pay in the UAE is crucial because it ensures employees receive fair compensation for their efforts and helps employers stay compliant with labour regulations.
This 2025 guide covers the legal framework, calculation formulas, night and holiday rates, exemptions, employer obligations, dispute resolution, and practical tips. Whether you’re a new employee, a long-term professional, or a business owner, this article will give you complete clarity on overtime pay in the UAE.
🔎 (1) Legal framework — which laws govern overtime?
The foundation of overtime pay in the UAE lies in Federal Decree-Law No. 33 of 2021, also known as the UAE Labour Law. The law defines working hours, limits on overtime, and the premiums employees should receive. It also empowers the Ministry of Human Resources and Emiratisation (MOHRE) to monitor compliance and resolve disputes.
Employers across mainland companies are required to follow this law strictly. Free zones like DIFC and ADGM have their own employment regulations, but many align closely with the national framework. It’s also important to note that the UAE continues to update employment regulations, ensuring that worker rights and business needs remain balanced.
For accurate and current information, always check MOHRE circulars and the official UAE Government portal. These resources help both employers and employees understand their obligations and rights regarding overtime pay in the UAE.
⏱️ (2) Normal working hours and the limit on overtime
In the UAE, the standard work schedule is eight hours per day, or 48 hours per week. Certain sectors, such as hospitality or security, may have different arrangements, but the eight-hour principle generally applies.
Employers may request employees to work beyond these hours, but overtime pay in the UAE comes with safeguards. The law states that no employee should work more than two additional hours per day unless there are exceptional, unforeseen circumstances. This ensures a balance between productivity and employee well-being.
For example, if a worker is scheduled from 9 AM to 6 PM (including one hour of rest), any work performed after 6 PM is considered overtime. If the worker continues until 8 PM, that’s two hours of overtime — the maximum typically permitted.
This limit protects employees from exploitation and provides clear boundaries for employers to manage their workforce legally.
🧮 (3) How overtime is calculated — formulas and examples
Overtime pay in the UAE is always calculated based on the basic wage, not the gross salary. The basic wage excludes allowances such as housing, transport, or bonuses unless specified in the contract.
Here’s the formula most commonly used in payroll systems:
Overtime pay = (Basic salary × 12 / 365 / 8) × Number of overtime hours × Overtime multiplier
The multiplier depends on when the overtime is performed:
- Regular overtime: 1.25 (25% extra).
- Night overtime: 1.5 (50% extra).
- Public holiday/rest day overtime: 1.5 or a substitute day off.
Example:
If your basic salary is AED 8,000 per month:
- Daily wage = (8,000 × 12) ÷ 365 ≈ AED 263.
- Hourly wage = 263 ÷ 8 ≈ AED 32.9.
- One hour of regular overtime = 32.9 × 1.25 ≈ AED 41.1.
So, if you worked 10 hours of regular overtime in a month, you’d earn an extra AED 411. This calculation illustrates the transparency built into overtime pay in the UAE, ensuring fair compensation.
🌙 (4) Night, holiday, and day-off overtime — higher premiums
Employees who work at night or on public holidays enjoy special protection under the Labour Law.
- Night overtime: If you work between 10 PM and 4 AM, you are entitled to 150% of your basic hourly wage. This acknowledges the strain of night shifts and compensates fairly.
- Rest day overtime: If your official weekly rest day is Friday and your employer requires you to work, you should receive either a substitute rest day or payment at 150% of your hourly wage.
- Public holidays: Work performed during public holidays must also be compensated at the premium rate, unless the employer provides an alternate day off.
These provisions highlight that overtime pay in the UAE is not just about additional hours but also about recognising the nature and timing of those hours. Employees working in hospitality, transport, and retail frequently benefit from these higher premiums.
🛡️ (5) Exemptions — who may not get overtime?
While the law protects most employees, some categories are excluded from overtime pay in the UAE. These include:
- Senior managers and supervisory staff whose roles inherently demand irregular hours.
- Employees with flexible contracts that specify all-inclusive pay packages.
- Free-zone workers (e.g., DIFC, ADGM), where specific contracts may override national provisions.
For instance, a project manager with decision-making authority may not be entitled to overtime because their role is considered “exempt.” Similarly, employees who agree to all-inclusive salaries that factor in potential overtime may not claim separate payments.
This makes it essential for employees to carefully review their contracts. Employers, on the other hand, should clearly specify exemptions to avoid disputes about overtime pay in the UAE.
🧾 (6) Employer obligations: written terms, records, and payment timing
Employers in the UAE have clear responsibilities regarding overtime pay in the UAE:
- Contracts: All contracts must state working hours and how overtime is handled.
- Record-keeping: Employers must keep accurate time logs, attendance records, and payroll slips.
- Payment timelines: Overtime should be paid within the same pay cycle as regular wages.
- Compliance: Employers must not exceed the two-hour overtime cap unless under exceptional circumstances.
Failure to meet these obligations may result in penalties, fines, and legal disputes. Properly documenting overtime ensures transparency and builds trust between employers and employees.
🛠️ (7) How to claim unpaid overtime and dispute resolution
Employees who feel they have not been compensated fairly for overtime can take several steps:
- Internal resolution: Discuss the issue with HR or payroll. Many disputes arise from calculation errors, which can be corrected quickly.
- Documentation: Keep evidence like timesheets, biometric logs, or emails requesting extra work.
- MOHRE complaint: If the issue is unresolved, employees can file a complaint with MOHRE through its online portal or call centre.
- Labour dispute committees: If mediation fails, the case can be escalated to the Labour Court, where judges will review the claim based on documents and the law.
Knowing these steps empowers employees to safeguard their right to fair overtime pay in the UAE without fear of retaliation. Employers are also encouraged to resolve disputes internally to avoid escalation.
✅ (8) Practical tips for employers and employees
Here are actionable tips to manage overtime pay in the UAE effectively:
- For employers:
- Automate attendance tracking with digital systems.
- Train managers to approve overtime formally before assigning it.
- Review payroll regularly to avoid miscalculations.
- For employees:
- Track your working hours personally.
- Review your payslip monthly for transparency.
- Raise questions promptly rather than waiting until disputes escalate.
By following these tips, both sides can ensure a smooth relationship and prevent misunderstandings about overtime pay in the UAE.
Conclusion
To sum up, overtime pay in the UAE is carefully regulated to protect employees and guide employers. The law caps overtime to two hours per day, requires a 25% premium for regular hours, and higher rates for night shifts and holidays. Exemptions exist, but they must be clearly outlined in contracts. Employers are responsible for accurate records and timely payments, while employees should remain proactive in tracking hours and raising concerns.
By staying informed and consulting official resources, you can ensure compliance and fairness in handling overtime pay in the UAE in 2025 and beyond.
