Overtime Pay in UAE: How to Calculate It (and What to Do If Unpaid) [2026]
Staying until 9pm "because the project needs it" is practically a UAE office tradition. What is less traditional is being paid for it — and that is exactly what the law requires. If you are working beyond your contracted hours, UAE labour law gives you a precise, mathematical entitlement. Here is how to calculate it, dirham by dirham.
The Legal Framework: Articles 17–19
Working hours and overtime for mainland private-sector employees are governed by Federal Decree-Law No. 33 of 2021:
- Article 17 — the baseline. Maximum 8 hours per day or 48 hours per week. This may rise to 9 hours per day in certain sectors (commerce, hotels, restaurants, security). During Ramadan, hours reduce to 6 per day. Senior management and maritime workers are excluded from these limits.
- Article 18 — the rates. Overtime is paid at 125% of the hourly wage. Overtime between 10:00 PM and 4:00 AM is paid at 150%. If you work on your weekly rest day, you must receive 150% pay or a substitute day off. Overtime is capped at 2 hours per day, except where work is necessary to prevent substantial loss or accident.
- Article 19 — the rest day. You are entitled to at least 1 rest day per week (Friday by default, changeable by agreement), and you cannot be made to work more than 2 consecutive rest-day Fridays.
Note the exclusions carefully: if you hold a genuinely senior managerial position, the hour limits — and therefore overtime — generally do not apply to you. Some employers stretch this exemption to cover anyone with "manager" in their title; whether it truly applies depends on your actual role and authority, not the word on your business card. And if you work in DIFC or ADGM, separate free zone employment laws apply instead of the federal Labour Law.
How to Calculate Your Overtime: A Worked Example
Overtime is calculated on your hourly wage. The commonly applied method in the UAE is to derive your daily wage by dividing your monthly basic salary by 30, then your hourly wage by dividing by your daily working hours.
Say your basic salary is AED 8,000/month and you work standard 8-hour days:
- Daily wage: 8,000 ÷ 30 = AED 266.67
- Hourly wage: 266.67 ÷ 8 = AED 33.33
- Standard overtime rate (125%): 33.33 × 1.25 = AED 41.67/hour
- Night overtime rate, 10pm–4am (150%): 33.33 × 1.5 = AED 50.00/hour
So if you worked 10 hours of ordinary overtime this month plus 4 hours after 10pm, you are owed:
- 10 × 41.67 = AED 416.70
- 4 × 50.00 = AED 200.00
- Total: AED 616.70 on top of your salary
Run that across a year of routine "just stay another hour" evenings and the number gets serious — often several thousand dirhams. Note the calculation uses your basic salary, not your total package including allowances. That same basic-salary figure also drives your end-of-service gratuity, which is why a low basic in your contract hurts you twice — check the effect with our free gratuity calculator.
Common Myths — Busted
- Myth: "Overtime is included in your salary." Fact: A blanket contract line does not erase Article 18. Under Article 4, contract conditions that undercut your legal rights are void — though genuinely senior managerial roles are exempt from hour limits.
- Myth: "We don't pay overtime, we're flexible about arrival times." Fact: Informal flexibility is not a lawful substitute for the 125%/150% rates when your recorded hours exceed the legal maximum.
- Myth: "Rest-day work is just part of the job here." Fact: Rest-day work must be paid at 150% or compensated with a substitute day off — and you cannot be made to work more than 2 consecutive rest-day Fridays.
- Myth: "Ramadan hours are a company benefit." Fact: The 6-hour Ramadan day is a legal entitlement under Article 17, not a favour.
Unpaid Overtime? Here's What to Do
- Build your evidence. Overtime claims live or die on records. Save rosters, shift schedules, emails sent late at night, office access logs, timesheets — anything showing your actual hours over your contracted hours.
- Do the maths. Use the method above to compute the exact amount owed, month by month. A specific number ("AED 3,740 for January–May") is far harder to wave away than "you owe me overtime".
- Raise it in writing. Email HR with your calculation and the legal basis (Articles 17–18), and request payment in the next salary cycle.
- File with MOHRE. Non-payment of overtime is a recognised MOHRE complaint type. File via the app, website, call centre 80060, WhatsApp 600590000, or a Tasheel centre — within 2 years of the issue. MOHRE attempts resolution within 14 working days; claims of AED 50,000 or less can get a binding MOHRE decision, and larger unresolved claims are referred to the labour court. A formal bilingual letter with your calculation attached carries real weight — generate one with our MOHRE complaint letter generator.
Leaving the Company? Claim It in Your Final Settlement
Unpaid overtime does not evaporate when you resign or are terminated. Under Article 53, all wages and entitlements must be paid within 14 days of termination — and accrued overtime belongs in that settlement alongside your gratuity and unused leave. Tally it before you sign anything marked "full and final".
Not Sure Whether Your Role Is Exempt?
The trickiest question in most overtime disputes is whether the senior-management exemption genuinely applies, or whether sector rules change your baseline hours. Describe your role, hours, and contract to our AI Employment Rights Assistant for a free, specific read on where you stand.
RentShield provides general information about UAE employment laws and is not a substitute for professional legal advice. For complex matters, consult a qualified UAE labour lawyer and verify current requirements with MOHRE official sources.
Related Resources
Know Your Employment Rights
Calculate your end-of-service gratuity for free, explore your employment rights, or learn how to file a MOHRE complaint.
Legal Disclaimer
RentShield provides general information about UAE tenancy laws and is not a substitute for professional legal advice. For complex legal matters, consult a qualified UAE lawyer. Laws and regulations may change — always verify current requirements with official government sources.