How To Calculate Overtime: Dubai Visa Guide

To calculate overtime pay in Dubai according to UAE labour law, you’ll need your basic salary, standard working hours, and the number of extra hours worked. Overtime is typically paid at a higher rate, ensuring fair compensation for additional work.

Key Takeaways

Understand your basic salary and standard working hours.
Recognize the legal overtime rates in Dubai.
Calculate your daily rate from your monthly salary.
Apply the correct premium for day and night overtime.
Factor in rest days for enhanced overtime calculations.
Consult official sources for the most accurate information.

Working in Dubai is an exciting prospect for many, offering a vibrant lifestyle and numerous career opportunities. As an expat or resident, understanding your employment rights is crucial. One common area of confusion is how overtime is calculated. Whether you’re an employee working extra hours or an employer ensuring fair pay, knowing the process is essential for compliance and peace of mind. This guide will walk you through how to calculate overtime in Dubai, making the process clear and straightforward.

Navigating labour laws can seem complex, but Dubai’s commitment to fairness and order extends to its workplace regulations. We’ll break down the steps, explain the different rates, and provide practical examples. By the end of this guide, you’ll feel confident in your understanding of overtime calculations, just as you would understanding Dubai Police services or public safety initiatives.

Understanding Dubai’s Overtime Framework

Dubai, like the rest of the UAE, operates under Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations (the “UAE Labour Law”). This law clearly defines the rights and responsibilities of both employers and employees regarding working hours and overtime. The core principle is to ensure that employees are adequately compensated for any work performed beyond their standard working week.

The UAE Labour Law standard working hours are set at 8 hours per day or 48 hours per week. These hours can be extended during the month, but not exceeding 5 working days in a week. It’s important to note that this framework is designed to promote a healthy work-life balance while acknowledging the needs of businesses.

What Constitutes Overtime in Dubai?

Overtime is defined as any period of work performed by an employee beyond the standard 8 hours per day or 48 hours per week. There are specific conditions and regulations governing when overtime can be requested and how it must be compensated.

An employer can ask an employee to work overtime, but it should not exceed two hours per day on average. However, if the employee’s work is of a nature that requires them to work continuously for the employer, then the employee may work for more than the period prescribed for the normal working hours.

The law also states that overtime should not be required if it is likely to jeopardize the employee’s safety. This highlights Dubai’s commitment to employee well-being and public safety, mirroring the principles seen in Dubai Police’s operational standards.

Legal Overtime Rates in Dubai

The overtime rates in Dubai are legally mandated to ensure employees are fairly compensated. The specifics depend on when the overtime is worked.

• Overtime during a normal working day: If you work more than 8 hours on a standard working day, you are entitled to an additional payment of at least 25% of your basic wage for each extra hour.
• Overtime during rest days or public holidays: If you are asked to work on your official weekly rest day (usually Friday) or a public holiday, you are entitled to one of the following:
  • An additional payment of at least 50% of your basic wage for each extra hour worked.
  • A compensatory day off in lieu, in addition to your regular pay.
• Overtime between 10 PM and 4 AM: For work performed between 10 PM and 4 AM, an employee is entitled to an additional payment of at least 50% of their basic wage for each hour, in addition to their normal wage. This is sometimes referred to as “night overtime” and is distinct from simply exceeding the daily 8-hour limit.

These rates are a cornerstone of employee protection in Dubai, ensuring that extra effort is always recognised and rewarded appropriately. Understanding these rates is as important as knowing how to navigate Dubai’s smart police services app for any public safety concerns.

Step-by-Step Guide: How To Calculate Overtime

Calculating overtime might seem daunting, but with a systematic approach, it becomes quite manageable. You’ll need a few key pieces of information from your employment contract or payslip. Let’s break it down.

Step 1: Determine Your Basic Salary and Total Allowance

Your employment contract should clearly state your basic salary. It’s important to distinguish between your basic salary and total earnings, as overtime is typically calculated based on the basic salary component. Many contracts also include allowances (e.g., housing, transport), but these are usually not included in the overtime calculation unless explicitly stated otherwise in your contract or a company policy.

Step 2: Calculate Your Daily Wage

To calculate hourly overtime, you first need to determine your daily wage. This is done by dividing your monthly basic salary by the number of days you are typically considered to be working in a month. While a month has 30 or 31 days, for salary and overtime calculations, it’s common practice to use 30 days as a standard reference.

Formula:

Daily Wage = Monthly Basic Salary / 30 days

Example: If your monthly basic salary is AED 6,000:

Daily Wage = AED 6,000 / 30 = AED 200 per day

Step 3: Calculate Your Hourly Wage

Next, you need to find your hourly wage. This is derived from your daily wage by dividing it by the standard number of working hours per day, which is typically 8 hours.

Formula:

Hourly Wage = Daily Wage / 8 hours

Continuing the example, if your daily wage is AED 200:

Hourly Wage = AED 200 / 8 hours = AED 25 per hour

Step 4: Calculate Overtime During Normal Working Days

For overtime worked beyond the standard 8 hours on a regular working day, you are entitled to 25% of your hourly wage as an addition. Therefore, the total hourly rate for this type of overtime is 125% of your normal hourly wage.

Formula:

Overtime Rate (Normal Day) = Hourly Wage 1.25

Using our example where the hourly wage is AED 25:

Overtime Rate (Normal Day) = AED 25 1.25 = AED 31.25 per hour

If you worked 2 extra hours on a normal working day:

Overtime Pay = Overtime Rate (Normal Day) Number of Overtime Hours
Overtime Pay = AED 31.25 2 = AED 62.50

Step 5: Calculate Overtime During Rest Days or Public Holidays

When you work on a designated rest day (like a Friday, if that’s your day off) or a public holiday, the compensation is higher. You are entitled to at least 50% of your basic wage for each extra hour, making the total hourly rate 150% of your normal hourly wage. Alternatively, you should receive a compensatory day off.

Formula:

Overtime Rate (Rest Day/Holiday) = Hourly Wage 1.50

Using our example where the hourly wage is AED 25:

Overtime Rate (Rest Day/Holiday) = AED 25 1.50 = AED 37.50 per hour

If you worked 8 hours on a Friday (your rest day):

Overtime Pay = Overtime Rate (Rest Day/Holiday) Number of Overtime Hours
Overtime Pay = AED 37.50 8 = AED 300

In addition to this pay, you should also ideally receive a compensatory day off.

Step 6: Calculate Overtime Between 10 PM and 4 AM

Work performed between 10 PM and 4 AM also attracts a higher rate, at least 50% of your basic wage in addition to your normal wage. This means the total hourly rate for this period is 150% of your normal hourly wage, similar to rest day overtime. It’s important to note that if overtime hours fall within this period, you get the additional 50% premium.

Formula:

Overtime Rate (Night Hours) = Hourly Wage 1.50

Using our example where the hourly wage is AED 25:

Overtime Rate (Night Hours) = AED 25 1.50 = AED 37.50 per hour

If you worked 2 hours between 10 PM and 4 AM:

Overtime Pay = Overtime Rate (Night Hours) Number of Overtime Hours
Overtime Pay = AED 37.50 2 = AED 75

Note: If overtime spans across different categories (e.g., normal day overtime that extends into night hours), the calculation needs to be done separately for each segment. For instance, if you work from 6 PM to 2 AM (8 hours total), the first 4 hours are normal overtime (6 PM – 10 PM), and the next 4 hours are night overtime (10 PM – 2 AM). You would calculate the pay for each segment accordingly.

Illustrative Examples and Scenarios

Let’s solidify your understanding with a few practical scenarios. These examples assume a monthly basic salary of AED 7,500 and a standard 8-hour working day.

Scenario 1: Standard Overtime in a Week

Employee: Ahmed

Basic Salary: AED 7,500 per month

Hourly Wage: (AED 7,500 / 30) / 8 = AED 31.25

Overtime Rate (Normal Day): AED 31.25 1.25 = AED 39.06

Ahmed worked 3 extra hours on Tuesday and 2 extra hours on Thursday, all within normal working hours (before 10 PM and not on a rest day). Total overtime hours = 5.

Calculation:

Total Overtime Pay = 5 hours AED 39.06/hour = AED 195.30

Scenario 2: Overtime on a Rest Day

Employee: Fatima

Basic Salary: AED 7,500 per month

Hourly Wage: AED 31.25

Overtime Rate (Rest Day/Holiday): AED 31.25 1.50 = AED 46.88

Fatima was asked to work on her Friday rest day and completed a full 8-hour shift. She will receive her normal Friday pay plus overtime, or a compensatory day off.

Calculation:

Overtime Pay for the day = 8 hours AED 46.88/hour = AED 375.04

Fatima would receive AED 375.04 in addition to her normal daily pay, or her normal pay for the day plus a compensatory day off.

Scenario 3: Night Overtime and Normal Overtime Combined

Employee: Omar

Basic Salary: AED 7,500 per month

Hourly Wage: AED 31.25

Omar worked from 4 PM to 1 AM on a Wednesday. This is 9 hours of work.

Normal working hours: 4 PM to 8 PM (4 hours)

Night overtime hours: 10 PM to 1 AM (3 hours)

Normal overtime hours: 8 PM to 10 PM (2 hours)

Calculations:

• Overtime Pay for 8 PM – 10 PM (2 hours):

  Rate = AED 31.25 1.25 = AED 39.06/hour

  Pay = 2 hours AED 39.06/hour = AED 78.12

• Overtime Pay for 10 PM – 1 AM (3 hours):

  Rate = AED 31.25 1.50 = AED 46.88/hour

  Pay = 3 hours AED 46.88/hour = AED 140.64

Total Overtime Pay for the day = AED 78.12 + AED 140.64 = AED 218.76

These scenarios highlight how different types of overtime are calculated, ensuring that every extra moment worked is accounted for according to Dubai’s labour laws.

Key Information Sources and Regulations

Staying informed about labour laws is crucial for everyone in Dubai. The UAE government provides several official channels for this information, ensuring transparency and accessibility. These resources are as reliable as the emergency numbers provided by Dubai Police.

Ministry of Human Resources and Emiratisation (MOHRE)

The Ministry of Human Resources and Emiratisation (MOHRE) is the primary government body responsible for labour affairs in the UAE. They set the regulations and provide comprehensive guidelines on all aspects of employment, including working hours, overtime, contracts, and employee rights. Their official website is an invaluable resource for accurate and up-to-date information.

You can find detailed explanations of the UAE Labour Law and related decrees on the MOHRE website. They also offer services for resolving labour disputes and provide information on various employee/employer obligations.

Official Website: https://www.mohre.gov.ae/

Free zones and specific company policies

It is important to note that while the UAE Labour Law applies to most companies, businesses operating within certain Free Zones might have slightly different regulations or operate under their own established legal frameworks. Always check if your company falls under a specific Free Zone authority, such as the Dubai International Financial Centre (DIFC) or the Jebel Ali Free Zone (JAFZA), as their employment laws may vary.

Furthermore, while the law sets minimum standards, individual employment contracts can offer more favourable terms. Always refer to your contract for specifics, as it overrides the general law if it provides better benefits.

Pro Tip

Keep a detailed log of all your working hours, especially any overtime. Note down the dates, times of arrival and departure, and the nature of the work performed. This personal record can be incredibly useful if any discrepancies arise regarding your overtime pay and serves as excellent documentation.

Frequently Asked Questions (FAQ)

Q1: Is overtime always calculated based on the basic salary?

Yes, according to UAE Labour Law, overtime pay is calculated based on your basic salary. Any allowances you receive are generally not included in this calculation unless your contract specifically states otherwise or offers terms more favourable to the employee.

Q2: Can an employer refuse to pay overtime?

No, an employer cannot refuse to pay legally earned overtime. Failure to pay overtime is a violation of UAE Labour Law. If an employer refuses to pay, employees have the right to file a complaint with MOHRE.

Q3: What is the maximum number of overtime hours allowed per day in Dubai?

Generally, an employee cannot be asked to work more than two hours of overtime per day. However, this limit may not apply if the nature of the work requires continuous effort, or if the employee volunteers to work additional hours under specific circumstances. There are also exceptions for emergencies.

Q4: Do I get paid differently for working on a Friday compared to a Saturday if my company observes Friday as a rest day?

Yes. The UAE Labour Law mandates that an employee must receive at least 50% extra pay for working on their official weekly rest day, in addition to their normal wage. If your contract designates Friday as your rest day, then working on Friday falls under this category. If your contract designates Saturday as your rest day and Friday as a normal working day, then overtime on Friday would be calculated at 25% extra, while overtime on Saturday would be at 50% extra.

Q5: What if my employer doesn’t provide a compensatory day off for working on a holiday?

If you work on a gazetted public holiday, you are entitled to either a compensatory day off in lieu or a payment of at least 50% of your basic wage for each day worked, in addition to your regular pay. If your employer fails to provide either, you can report this to MOHRE.

Q6: How do I convert my hourly overtime rate to a daily overtime pay?

Simply multiply your calculated hourly overtime rate by the number of overtime hours you worked in a day. For example, if your hourly overtime rate for a normal day is AED 39.06 and you worked 4 hours of overtime, your daily overtime pay would be 4 * AED 39.06 = AED 156.24.

Ensuring Fair Compensation and Employee Rights

Understanding how to calculate overtime in Dubai is more than just a mathematical exercise; it’s about ensuring that your hard work is rightfully compensated and that your rights as an employee are protected. Dubai’s progressive labour laws are designed to foster a fair and safe working environment, reflecting the emirate’s commitment to order, efficiency, and the well-being of its diverse workforce.

By familiarizing yourself with the basic salary-based calculations, the different rates for various overtime scenarios, and the official resources available through MOHRE, you are empowered. This knowledge ensures that you can confidently discuss your working hours and overtime pay with your employer, maintaining a professional and transparent relationship. Just as Dubai Police utilizes advanced technology for public safety, residents can utilize official channels to understand their labor rights, ensuring peace of mind.

Whether you are new to Dubai or have been living here for years, staying informed about employment regulations is key to a positive and secure professional experience in this dynamic city. Remember, accurate record-keeping and understanding the legal framework are your best tools.