UAE Overtime Law 2026: Rates, Night Hours and Rest-Day Pay

Overtime in the UAE private sector is governed by Federal Decree-Law 33 of 2021 (Article 19). The rules are short, but the hourly-rate method, the night window and the rest-day options raise most of the questions people ask about their payslips. This guide covers who the rules apply to, the exact premiums, how to turn a monthly salary into an hourly rate, worked examples at different salaries, and what employers need to do to stay inside the law.

Rules last reviewed: 23 September 2026, against u.ae — Working hours and overtime.

UAE overtime rates at a glance

Overtime is also limited: no more than 2 hours of overtime a day.

Who these rules cover

These rules apply to employees of UAE private-sector employers under the federal labour law. If your employment is governed by a different regime, such as a free zone with its own employment law, or your role or sector has special working-hours arrangements, check the u.ae working-hours page and your contract before using the figures here. Your contract sets your normal daily hours and your rest day; those two facts decide which hours count as overtime and at what rate.

Step 1: turn your monthly salary into an hourly rate

Overtime is calculated on basic salary, not on allowances. The hourly rate follows the method published on u.ae:

Hourly basic wage = monthly basic × 12 ÷ 365 ÷ normal working hours per day

With an 8-hour working day:

Using 12 ÷ 365 instead of dividing by 30 reflects that a year has 365 days, not 360. It gives a slightly lower hourly figure than dividing the monthly basic by 30, so check which method your employer's payroll applies.

Step 2: multiply by the right premium

Worked example 1: normal overtime

Basic salary AED 6,000, 10 hours of normal overtime in a month. Hourly basic = 6,000 × 12 ÷ 365 ÷ 8 = AED 24.66. Overtime pay = 10 × hourly basic × 125% = AED 308.22.

Worked example 2: a mixed month

Basic salary AED 9,000 (hourly basic AED 36.99), with 8 hours of normal overtime, 6 hours of night overtime and an 8-hour shift on a rest day:

Worked example 3: night overtime only

Basic AED 12,000 (hourly AED 49.32), 4 hours worked between 10pm and 4am as overtime: 4 × hourly × 150% = AED 295.89.

Worked example 4: working a rest day or public holiday

Basic AED 5,000, an 8-hour shift on your rest day. Paid at 150%, that is AED 246.58. Alternatively, the law allows the employer to give you a substitute day off instead of the 50% premium. The same applies to public holidays; in 2026 that includes UAE National Day on 2 and 3 December.

The 2-hour daily limit

UAE law caps overtime at 2 hours a day. A useful check is the average: divide your overtime hours by the number of days you worked them. Twenty hours of overtime on AED 4,000 basic pays AED 410.96 either way, but spread over 8 days that is 2.5 hours a day, above the legal limit, while spread over 10 days it is exactly 2 hours a day and within it. Our calculator flags the first case with a warning and still prices every hour you enter.

Edge cases that change the number

Your normal day is not 8 hours

The hourly rate depends on your normal daily hours. On AED 9,000 basic, 8 overtime hours pay AED 369.86 on an 8-hour day but AED 328.77 on a 9-hour day, because the same monthly basic is spread over more hours. Use the normal hours in your contract.

Allowances are left out

Housing and transport allowances do not increase UAE overtime pay because the calculation uses basic salary only. If most of your package is allowances, your overtime rate will feel low compared with your total pay.

Night hours outside 10pm–4am

The 50% night premium applies to overtime worked between 10pm and 4am. An overtime hour from 8pm to 9pm, or from 4am to 5am, is paid at the normal 25% overtime rate.

Day off instead of pay

For rest-day and public-holiday work, a substitute day off can replace the 50% premium. Agree in writing which option applies before the shift, so payroll and the employee have the same expectation.

How the UAE compares with the rest of the GCC

Pay for 8 normal overtime hours, with no allowances, using each country's rules as modelled in our calculator. Results are shown in hours of basic pay so they compare across currencies:

With allowances, the Saudi figure rises further, because Article 107 uses the actual wage. Kuwait and Bahrain rules are still being verified and are not covered yet.

The employee view: checking your overtime

• Keep your own log of start and finish times, especially late finishes and rest-day shifts. The night window and rest-day hours carry the higher rate.
• Check the base. Overtime should be worked out on your basic salary using your normal daily hours.
• Look for separate lines on your payslip for normal, night and rest-day overtime.
• If you were given a day off instead of the rest-day premium, make sure it was actually granted.
• Raise unpaid overtime early, while the records are fresh, rather than waiting for your final settlement.

The employer view: staying compliant

• Write normal hours and the rest day into every contract. Both decide what counts as overtime and at what rate.
• Use one documented formula. Monthly basic × 12 ÷ 365 ÷ normal daily hours, then the 125% or 150% premium. Apply it the same way for every employee.
• Roster to the 2-hour cap. Track overtime per day, not just per month, so a busy week does not quietly breach the limit.
• Decide rest-day compensation up front: pay at 150% or give a substitute day off, and record which.
• Budget realistically. At 125%, each overtime hour costs a quarter more than a normal hour on basic pay; at night or on a rest day, each hour costs half as much again as a normal hour.

A real month, worked through

Take a retail supervisor in Dubai on AED 6,500 basic and AED 3,500 allowances, with a normal 8-hour day. In one month they stay back 2 hours on 12 evenings. On 4 of those evenings one hour runs past 10pm. They also work an 8-hour shift on UAE National Day.

• Normal overtime: 12 evenings × 2 hours = 24 hours, minus the 4 night hours = 20 hours at 125%.
• Night overtime: 4 hours at 150%.
• Public holiday: 8 hours at 150%, unless a substitute day off is given instead.

The AED 3,500 of allowances does not enter the calculation. The overtime averages exactly 2 hours on each of the 12 evenings, so it stays within the daily limit. If the supervisor took a day off in place of the holiday premium, the total would be AED 828.08.

Common payroll mistakes

• Calculating on the full package. On AED 9,000 basic plus AED 6,000 allowances, 10 normal overtime hours are worth AED 462.33 on basic. Working them out on the AED 15,000 package would give AED 770.55, which overpays.
• Dividing by 30 instead of using 12 ÷ 365. On AED 9,000 basic, the divide-by-30 hourly rate is AED 37.50 against AED 36.99 using the u.ae method. The difference is small per hour but adds up over a year.
• Paying night hours at 125%. Hours between 10pm and 4am carry the 50% premium.
• Treating rest-day work as normal overtime. A rest-day hour is paid at 150%, or replaced with a substitute day off.
• Checking only the monthly total. The 2-hour limit is daily, so a monthly total can look reasonable while individual days breach it.

Questions to ask before you accept a role with regular overtime

Overtime can add a meaningful amount to a modest basic, but only if it is recorded and paid properly. Before you sign, ask:

• What are the normal daily hours and which day is the rest day? Both are written into the contract and decide every overtime figure.
• How much of the package is basic? Overtime is paid on basic only, so a large allowance share means a lower overtime rate.
• How are hours recorded: a time system, a manager's sheet, or nothing? Unrecorded hours are hard to claim later.
• Is rest-day or holiday work paid at 150% or compensated with a day off? Get the answer in writing.
• How often does overtime run past 10pm? Night hours are paid at the higher rate, so they should show separately on the payslip.

How to raise an overtime discrepancy

1. Rebuild the figure yourself. Take your basic, your normal daily hours and your logged hours, split them into normal, night and rest-day hours, and run them through the calculator.
2. Find the line that differs. Most gaps come from one of three things: the wrong base (gross instead of basic), the wrong divisor, or night and rest-day hours paid at the normal rate.
3. Put it in writing to HR or payroll, with your log and the line-by-line calculation. A specific, numbered difference is far easier to correct than a general complaint.
4. Keep copies of payslips, rosters and messages asking you to stay late. They are your evidence if the question is still open when you leave.

Worked monthly budget

A team of five, each on AED 6,000 basic, averaging 10 normal overtime hours a month each, costs about AED 1,541.10 a month in overtime, or AED 18,493.20 a year. If two of those ten hours each month fall in the night window, each person's overtime rises from AED 308.22 to AED 320.55 a month, because those hours are paid at 150% instead of 125%.

Sources and review date

Every rule and number in this guide comes from the same rule set that powers the MenaJobs calculators. The sources below were last checked on 23 September 2026. Labour rules change, so confirm with the official source, your contract or a qualified adviser before you rely on a figure in a dispute.

• u.ae — Working hours and overtime (Federal Decree-Law 33/2021, Art 19). Official source; reviewed 23 September 2026.
• 2026 public holidays (government announcements; Islamic dates expected). Secondary summary — confirm with the official text; reviewed 23 September 2026, next review due 1 January 2027.
• Saudi Labour Law Art 107 (Art 107). Secondary summary — confirm with the official text; reviewed 23 September 2026.
• Qatar Labour Law No. 14 of 2004 (summary). Secondary summary — confirm with the official text; reviewed 23 September 2026.
• Oman Labour Law — Royal Decree 53/2023. Official source; reviewed 23 September 2026.

This guide is general information, not legal advice.