How to use the calculator
- Enter the monthly basic wage. Overtime is worked out on the basic wage, not on allowances.
- Check the hourly wage basis: 30 days a month and 8 normal hours a day unless the contract says otherwise.
- Enter the overtime hours for the pay period, with hours between 10 pm and 4 am on their own line, and say whether the employee works in shifts.
- Add rest days and public holidays worked, counting only days paid instead of another day off. Enter the days with overtime to compare the average with the 2-hour limit.
How overtime pay is calculated
A day's basic wage = monthly basic wage ÷ days in a month
Basic hourly wage = a day's basic wage ÷ normal hours a day
Overtime pay = hours × basic hourly wage × 1.25
Night overtime pay = night hours × basic hourly wage × 1.5 (shift workers: × 1.25)
Rest day pay = days × a day's basic wage × 1.5
Public holiday pay = days × a day's basic wage × 1.5
The night rate applies to overtime worked between 10 pm and 4 am, not to normal hours worked at night. For a rest day or public holiday, the law gives the day's wage plus an increase on the basic wage; the calculator works out both parts on the basic wage.
The rates and limits in the law
| Rule | What the law sets |
|---|---|
| Overtime hours | Basic hourly wage + at least 25% |
| Overtime between 10 pm and 4 am | Basic hourly wage + at least 50% (10 pm to 4 am) |
| Work on the weekly rest day | Substitute day off or day's wage + at least 50% |
| Work on a public holiday | Substitute day off or day's wage + at least 50% |
| Overtime limit and total hours | 2 hours a day; 144 hours per 3 weeks |
| Normal working hours | 8 hours a day / 48 hours a week |
Source: Federal Decree-Law No. 33 of 2021 Regarding the Regulation of Employment Relationships (English translation, not official), Article 17, The Official Portal of the UAE Government (u.ae). Checked .
Normal hours are at most 8 a day or 48 a week, and during Ramadan they are 2 hours a day shorter. A worker may not be asked to work more than 2 consecutive rest days, except day workers.
Worked example
Worked example
Basic wage of AED 6,000, 12 overtime hours and a rest day
The wage and the hours are illustrations. The employee does not work in shifts and is paid for the rest day instead of getting another day off.
- A day's basic wage: 6,000 ÷ 30 = AED 200.00. Hourly: AED 200.00 ÷ 8 = AED 25.00.
- 10 overtime hours × AED 31.25 (+25%) = AED 312.50.
- 2 night hours × AED 37.50 (+50%) = AED 75.00.
- 1 rest day × AED 300.00 (a day's wage +50%) = AED 300.00.
Overtime pay for the period: AED 687.50.
Assumptions and what the calculator leaves out
- The hourly wage. The law sets overtime as the wage for normal hours, based on the basic wage, plus an increase, but gives no divisor. The calculator starts from the 30-day month of Article 67 and 8 normal hours a day.
- Minimum rates. The percentages are the least the law allows. Where a contract or the company rules pay more, the calculator understates the pay.
- Who it covers. Private-sector workers under the federal Labour Law. The Implementing Regulation can exclude some categories of workers from the working hours rules, and DIFC and ADGM have their own employment laws.
- The daily limit. The check compares an average over the days you enter with the 2-hour limit. It does not check single days or the 144-hour limit over 3 weeks.
How the Labour Law counts months
Year = 365 days; month = 30 days
Periods and dates in the UAE Labour Law are calculated on the Gregorian calendar, with a year counted as 365 days and a month as 30 days.
- Applies to
- Periods and dates set by Federal Decree-Law No. 33 of 2021 (private-sector employment)
- Source
- Federal Decree-Law No. 33 of 2021 Regarding the Regulation of Employment Relationships (English translation, not official), Article 67, The Official Portal of the UAE Government (u.ae)
- Checked
For the rules on hours, breaks and rest days, see the overtime and working hours guide. Unused annual leave is valued in the leave salary calculator.