{"id":12306,"date":"2024-01-14T02:44:44","date_gmt":"2024-01-13T22:44:44","guid":{"rendered":"https:\/\/connectresources.ae\/?p=12306"},"modified":"2025-06-05T11:43:00","modified_gmt":"2025-06-05T07:43:00","slug":"how-to-calculate-overtime-as-per-uae-labour-law","status":"publish","type":"post","link":"https:\/\/connectresources.ae\/how-to-calculate-overtime-as-per-uae-labour-law\/","title":{"rendered":"Overtime Calculation In UAE 2024: Calculate Hours As Per UAE Labour Law"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_76 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #c1121f;color:#c1121f\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #c1121f;color:#c1121f\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/connectresources.ae\/how-to-calculate-overtime-as-per-uae-labour-law\/#1_What_should_you_know_about_overtime_calculation_in_the_UAE\" >1. What should you know about overtime calculation in the UAE?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/connectresources.ae\/how-to-calculate-overtime-as-per-uae-labour-law\/#How_to_calculate_overtime_on_a_working_day\" >How to calculate overtime on a working day?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/connectresources.ae\/how-to-calculate-overtime-as-per-uae-labour-law\/#2_What_does_the_UAE_law_state_about_the_overtime_calculation_in_the_payroll_process\" >2. What does the UAE law state about the overtime calculation in the payroll process?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/connectresources.ae\/how-to-calculate-overtime-as-per-uae-labour-law\/#3_How_should_companies_in_the_UAE_calculate_overtime_on_a_normal_day\" >3. How should companies in the UAE calculate overtime on a normal day?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/connectresources.ae\/how-to-calculate-overtime-as-per-uae-labour-law\/#4_What_is_the_formula_that_companies_must_use_to_calculate_overtime_during_public_holidays\" >4. What is the formula that companies must use to calculate overtime during public holidays?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/connectresources.ae\/how-to-calculate-overtime-as-per-uae-labour-law\/#5_How_should_employers_calculate_overtime_if_an_employee_works_on_Public_Holiday\" >5. How should employers calculate overtime if an employee works on Public Holiday?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/connectresources.ae\/how-to-calculate-overtime-as-per-uae-labour-law\/#6_How_can_Connect_Resources_help_you_calculate_overtime_to_accurately_pay_your_employees\" >6. How can Connect Resources help you calculate overtime to accurately pay your employees?<\/a><\/li><\/ul><\/nav><\/div>\n<p><span style=\"font-weight: 400;\">The payroll function of any company in the UAE involves many elements that employers must calculate before processing employee payments. For example, one of the most important ones is the <\/span><b>overtime calculation in the UAE<\/b><span style=\"font-weight: 400;\">. But before calculating this payroll factor, it is important to know its value, legal aspect, and every other related detail.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In this article, you will learn everything you need to know about the correct calculation of overtime in the UAE. We will provide you with the exact amounts that you must be aware of when it comes to working hours. Plus, here you will also find some tips to accurately carry out the overtime calculation in the UAE in Excel.<\/span><\/p>\n<ol>\n<li><span style=\"font-weight: 400;\"> What should you know about overtime calculation in the UAE?<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> What does the UAE law state about the overtime calculation in the <a href=\"\/payroll-services\/\">payroll process<\/a>?<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> How should companies in the UAE calculate overtime on a normal day?<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> What is the formula that companies must use to calculate overtime during public holidays?<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> How should employers calculate overtime if an employee works on Public Holiday?<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> How can <a href=\"https:\/\/connectresources.ae\/corporate-social-responsibility-connect-resources\/\">Connect Resources<\/a> help you calculate overtime to accurately pay your employees?<\/span><\/li>\n<\/ol>\n<p><a href=\"https:\/\/connectresources.ae\/contact\/?utm_source=contactus&amp;utm_medium=tracking&amp;utm_campaign=calltoaction&amp;utm_id=website\"><img decoding=\"async\" class=\"alignnone wp-image-27279 size-full\" src=\"https:\/\/connectresources.ae\/wp-content\/uploads\/2022\/05\/Colorful-Blobs-Modern-Artisan-Marketing-Retail-X-Frame-Banner-2.png\" alt=\"\" width=\"6912\" height=\"2304\" srcset=\"https:\/\/connectresources.ae\/wp-content\/uploads\/2022\/05\/Colorful-Blobs-Modern-Artisan-Marketing-Retail-X-Frame-Banner-2.png 6912w, https:\/\/connectresources.ae\/wp-content\/uploads\/2022\/05\/Colorful-Blobs-Modern-Artisan-Marketing-Retail-X-Frame-Banner-2-300x100.png 300w, https:\/\/connectresources.ae\/wp-content\/uploads\/2022\/05\/Colorful-Blobs-Modern-Artisan-Marketing-Retail-X-Frame-Banner-2-1024x341.png 1024w\" sizes=\"(max-width: 6912px) 100vw, 6912px\" \/><\/a><\/p>\n<h2><span class=\"ez-toc-section\" id=\"1_What_should_you_know_about_overtime_calculation_in_the_UAE\"><\/span><strong>1. What should you know about overtime calculation in the UAE?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-12310 size-full\" src=\"https:\/\/connectresources.ae\/wp-content\/uploads\/2022\/06\/overtime-calculation-connect-resources_11zon.jpg\" alt=\"\" width=\"2268\" height=\"1323\" srcset=\"https:\/\/connectresources.ae\/wp-content\/uploads\/2022\/06\/overtime-calculation-connect-resources_11zon.jpg 2268w, https:\/\/connectresources.ae\/wp-content\/uploads\/2022\/06\/overtime-calculation-connect-resources_11zon-300x175.jpg 300w, https:\/\/connectresources.ae\/wp-content\/uploads\/2022\/06\/overtime-calculation-connect-resources_11zon-1024x597.jpg 1024w\" sizes=\"(max-width: 2268px) 100vw, 2268px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">As you may know, overtime is known for being an additional payment that employees can receive for working extra hours. And companies must not only carry out the <\/span><b>calculation of overtime in the UAE<\/b><span style=\"font-weight: 400;\"> but also in many other <a href=\"https:\/\/connectresources.ae\/countries\/\">countries<\/a>. Therefore, it is a normal practice in several countries because employees must work no more than 8 hours a day (48 a week).<\/span><\/p>\n<p><span style=\"font-weight: 400;\">And if an employee is required to work additional hours that go beyond their normal schedule, overtime must be calculated. However, it is vital that employers know what the labour law in the country states regarding this important <\/span><a href=\"https:\/\/connectresources.ae\/payroll\/\">payroll element<\/a>. And overtime calculation in the <a href=\"https:\/\/connectresources.ae\/manpower-in-uae\/\" data-wpil-monitor-id=\"936\">UAE labour<\/a> law has clear rules to pay employees for the extra hours they worked.<\/p>\n<p>If you are looking for EOR services including <a href=\"https:\/\/connectresources.ae\/eor-employer-of-record-dubai\/\">employer of record in UAE and Dubai<\/a>, you can get in touch with our team <a href=\"https:\/\/connectresources.ae\/eor-employer-of-record-dubai\/\">here<\/a>.<\/p>\n<p><span style=\"font-weight: 400;\">All employers in the UAE must comply with the labour laws in order to prevent getting penalties, such as fines. Besides, the overtime calculation in the UAE <a href=\"https:\/\/connectresources.ae\/oman-labour-law\/\" data-wpil-monitor-id=\"1092\">labour law<\/a> was introduced to prevent employers from forcing employees to work excessively. And in case they work long hours, they will get compensation for their hard work, which is overtime payment.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you desire to learn how to proceed with the <\/span>overtime calculation in the <a href=\"https:\/\/connectresources.ae\/countries\/united-arab-emirates\/\">United Arab Emirates<\/a><span style=\"font-weight: 400;\">, you will find more information below. And we will explain how to calculate it with formulas that vary depending on different situations, including Public holidays, and Ramadan. But first, you will need to learn what the <\/span>UAE labour laws say about overtime calculation.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"How_to_calculate_overtime_on_a_working_day\"><\/span><strong>How to calculate overtime on a working day?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>To compute overtime on a regular working day in the UAE, follow these steps:<\/p>\n<ol>\n<li>Calculate the per day salary by subtracting the Basic Salary multiplied by 12\/365 from the Basic Salary (<strong>Basic Salary x 12\/365<\/strong>).<\/li>\n<li>Determine the per hour salary by dividing the per day salary by 8 (<strong>Per Day Salary\/8<\/strong>).<\/li>\n<li>Find the overtime amount by multiplying the number of overtime hours by the per hour salary, with an additional factor of 1.25 (<strong>Number of overtime hours x Per Hour Salary x 1.25<\/strong>).<\/li>\n<\/ol>\n<p><strong>For example, let&#8217;s consider an employee with a basic salary of 3650 AED who worked 100 hours in a month:<\/strong><\/p>\n<ul>\n<li>Per Day Salary: 3650 x 12\/365\/9 = 15 (normal hour payment)<\/li>\n<li>Per Hour Salary (including 25%): 15 + 25% of 15 = 18.75 per hour payment<\/li>\n<li>Total Overtime Pay: 18.75 x 100 = 1875 AED<\/li>\n<\/ul>\n<p><strong>Now, calculate the total salary by adding the Basic Salary and Overtime Pay:<\/strong><\/p>\n<ul>\n<li>Total Salary: 3650 AED + 1875 AED = 5525 AED<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"2_What_does_the_UAE_law_state_about_the_overtime_calculation_in_the_payroll_process\"><\/span><strong>2. What does the UAE law state about the overtime calculation in the payroll process?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The UAE Labour Law governs the working hours that employees must comply with, which must not exceed 8 hours a day or 48 a week. However, in case the employer requires an employee to work beyond their schedule, calculating the <\/span><span style=\"font-weight: 400;\">overtime compensation<\/span><span style=\"font-weight: 400;\"> must be considered. And according to the laws, the <\/span>overtime calculation formula in the UAE<span style=\"font-weight: 400;\"> varies according to the circumstances in which the employee worked overtime.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For example, if the employee worked during the holy month of Ramadan, an<\/span>\u00a0overtime calculation <span style=\"font-weight: 400;\">must be applied. And there is an important rule when it comes to carrying out the <\/span><b>overtime calculation in the UAE during Ramadan<\/b><span style=\"font-weight: 400;\">. During this month, employees do not work 8 hours a day but 6 hours only. Working more than 6 hours during Ramadan will be considered overtime.<\/span><\/p>\n<h3><strong>2.1. Key rules related to the working hours in the UAE<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">Before learning about the <\/span>overtime calculation in the UAE labour law, you should be aware of the official working hours. According to the Labour Law<span style=\"font-weight: 400;\">, these are some of the key rules that all employees and employers must comply with:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Employees must work 8 hours a day or 48 hours a week unless they work in a trade, hotel, or security guard. In those cases, it is possible to increase their working hours to a maximum of 9 hours a day.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The time that employees spend commuting from their places of residence to their workplaces will not be considered overtime. And the law does not consider their 1-hour break as overtime either.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">As we previously mentioned, the official working hours are 8 hours per day. But during Ramadan, employees only work 6 hours a day at most.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Employers cannot force their employees to work overtime. And employees should not work more than the hours that they agreed upon in the <\/span><span style=\"font-weight: 400;\">employment contract<\/span><span style=\"font-weight: 400;\">. However, they can work beyond their schedule if they agree to do so in writing.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">In case an employee requests to perform their work remotely, the employer must specify their working hours.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">If an employee works 5 consecutive hours, he\/she has the right to have one or more breaks. And these breaks must be at least 1 hour. Nonetheless, breaks will not be calculated within the working hours.<\/span><\/li>\n<\/ul>\n<h3><strong>2.2. Key rules related to working overtime in the UAE<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">Just like there are rules that specify the official working hours, there are also some other rules regarding working overtime. So, we shall take a look at them before carrying out the <\/span><b>calculation of overtime in the UAE<\/b><span style=\"font-weight: 400;\">:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Employers may ask their employees to work overtime, but the number of extra hours must not exceed 2 hours per day.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">In case the nature of the work requires employees to work beyond their official schedule, they must receive <\/span><a href=\"https:\/\/connectresources.ae\/ufaq\/what-are-compensation-and-benefits-service\/\"><span style=\"font-weight: 400;\">compensation<\/span><\/a><span style=\"font-weight: 400;\">. More precisely, they will be entitled to a payment equal to normal working hours\u2019 remuneration plus 25% of that pay. In some cases, this number could increase to 50% if the employees work overtime between 10 pm and 4 am. However, keep in mind that this rule does not apply to employees who work on a shift basis.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">And in case the employer requires an employee to work on their day off, the employer must provide a substitute rest day. If the employee does not get a substitute rest day, he\/she must receive a payment equal to normal working hours\u2019 remuneration plus 50% of that pay.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">In addition, it is imperative to keep in mind that overtime is not always applicable. For example, they are not applicable to senior positions and administrative supervisors. Also, <\/span>overtime calculation in the UAE does not apply to the crew of naval ships and marine employees.<\/p>\n<p><span style=\"font-weight: 400;\">Furthermore, it is worth mentioning that time spent commuting, resting, and food breaks will not be included in calculating overtime.<\/span><\/p>\n<section class=\"l-section wpb_row us_custom_c9f14037 shoort_colr hide_on_default hide_on_laptops hide_on_tablets height_auto\">\n<div class=\"l-section-h i-cf\">\n<div class=\"g-cols vc_row via_flex valign_top type_default stacking_default\">\n<div class=\"vc_col-sm-12 wpb_column vc_column_container\">\n<div class=\"vc_column-inner\">\n<div class=\"wpb_wrapper\">\n<div class=\"g-cols wpb_row us_custom_adadfab6 via_flex valign_top type_default stacking_default\">\n<div class=\"vc_col-sm-2 wpb_column vc_column_container\">\n<div class=\"vc_column-inner\">\n<div class=\"wpb_wrapper\"><\/div>\n<\/div>\n<\/div>\n<div class=\"vc_col-sm-8 wpb_column vc_column_container shortcode_pr 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maxlength=\"2000\" class=\"wpcf7-form-control wpcf7-textarea\" id=\"testgclid\" aria-invalid=\"false\" placeholder=\"No Tag\" name=\"gclid\"><\/textarea><\/span>\n\t<\/p>\n<\/div>\n<div style=\"display:none;\" class=\"gclid_tag\" id=\"transaction_hide\">\n\t<p><span class=\"wpcf7-form-control-wrap\" data-name=\"initial_url\"><textarea cols=\"40\" rows=\"10\" maxlength=\"2000\" class=\"wpcf7-form-control wpcf7-textarea\" id=\"initial_url\" aria-invalid=\"false\" placeholder=\"No URL\" name=\"initial_url\"><\/textarea><\/span>\n\t<\/p>\n<\/div>\n<div id=\"explore_platform5\" class=\"col-lg-12 col-md-12 col-sm-12 col-xs-12\">\n\t<div class=\"form-group\">\n\t\t<p><span class=\"wpcf7-form-control-wrap\" data-name=\"your-message\"><textarea cols=\"70\" rows=\"7\" maxlength=\"2000\" class=\"wpcf7-form-control wpcf7-textarea wpcf7-validates-as-required form-control\" aria-required=\"true\" aria-invalid=\"false\" placeholder=\"How can we assist you?\" name=\"your-message\"><\/textarea><\/span>\n\t\t<\/p>\n\t<\/div>\n<\/div>\n<div class=\"col-lg-12 col-md-12 col-sm-12 col-xs-12\">\n\t<div class=\"buttons-area\">\n\t\t<p><input class=\"wpcf7-form-control wpcf7-submit has-spinner btn n-btn-flat btn-mid btn-block\" type=\"submit\" value=\"Submit\" \/>\n\t\t<\/p>\n\t<\/div>\n<\/div><input type='hidden' class='wpcf7-pum' value='{\"closepopup\":false,\"closedelay\":0,\"openpopup\":false,\"openpopup_id\":0}' \/><div class=\"wpcf7-response-output\" aria-hidden=\"true\"><\/div>\n<\/form>\n<\/div><\/div>\n<\/div>\n<\/div>\n<div class=\"vc_col-sm-2 wpb_column vc_column_container\">\n<div class=\"vc_column-inner\">\n<div class=\"wpb_wrapper\"><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n\n<h2><span class=\"ez-toc-section\" id=\"3_How_should_companies_in_the_UAE_calculate_overtime_on_a_normal_day\"><\/span><strong>3. How should companies in the UAE calculate overtime on a normal day?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">In order to correctly<strong> calculate overtime<\/strong> on a normal day, make sure to follow these formulas: \u201cbasic salary <\/span><span style=\"font-weight: 400;\">\u00d7 12\/365 days\/8 hours = 1 hour payment\u201d and \u201cnormal 1 hour pay + 25% = 1 hour overtime\u201d. The best way to understand it is through an example. Let\u2019s suppose that the basic salary of an employee is AED 2,600 and he worked 120 hours in a month. This is how overtime should be calculated:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">2600 <\/span><span style=\"font-weight: 400;\">\u00d7 12\/365\/8 = 10.68 normal hour payment.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">10.68 + 10.68 \u00d7 25% = 13.35 per hour overtime.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Now that we have this result, let us calculate total overtime hours \u00d7 per hour overtime pay:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">120 <\/span><span style=\"font-weight: 400;\">\u00d7 13.35 = 1602 total overtime pay.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Then, we calculate basic salary + total overtime pay:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">AED 2,600 + AED 1,602 = AED 4,202 monthly payment.<\/span><\/p>\n<h3><strong>3.1. Wrong formulas companies should not use<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">When it comes to overtime, most companies comply with the laws related to the <\/span>calculation of overtime in the UAE<span style=\"font-weight: 400;\">. However, there are some other companies that fail to calculate overtime as they should, which can lead to legal issues.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For example, most companies use the correct <\/span><b>overtime calculation formula in the UAE<\/b><span style=\"font-weight: 400;\">, which is \u201cper day salary = basic salary\/30 days\u201d. Another correct formula that compliant companies use is \u201cper hour salary = basic salary\/30 days\/8 hours\u201d.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">On the other hand, you can find UAE companies that do not use the right <\/span>overtime calculation formula in the UAE<span style=\"font-weight: 400;\">. And these companies end up calculating overtime using these wrong formulas: \u201cper day salary = basic salary <\/span><span style=\"font-weight: 400;\">\u00d7 12\/365\u201d or \u201c<\/span><span style=\"font-weight: 400;\">per hour salary = basic salary <\/span><span style=\"font-weight: 400;\">\u00d7 12\/365\/8 hours\u201d.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"4_What_is_the_formula_that_companies_must_use_to_calculate_overtime_during_public_holidays\"><\/span><strong>4. What is the formula that companies must use to calculate overtime during public holidays?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-12311 size-full\" src=\"https:\/\/connectresources.ae\/wp-content\/uploads\/2022\/06\/overtime-pay-connect-resources_11zon.jpg\" alt=\"\" width=\"2000\" height=\"1333\" srcset=\"https:\/\/connectresources.ae\/wp-content\/uploads\/2022\/06\/overtime-pay-connect-resources_11zon.jpg 2000w, https:\/\/connectresources.ae\/wp-content\/uploads\/2022\/06\/overtime-pay-connect-resources_11zon-300x200.jpg 300w, https:\/\/connectresources.ae\/wp-content\/uploads\/2022\/06\/overtime-pay-connect-resources_11zon-1024x682.jpg 1024w\" sizes=\"(max-width: 2000px) 100vw, 2000px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">Carrying out <\/span><b>overtime calculation in the UAE on a public holiday<\/b><span style=\"font-weight: 400;\"> is also mandatory. In this case, we use the following formula: \u201cbasic salary <\/span><span style=\"font-weight: 400;\">\u00d7 12\/365\/8 \u00d7 total overtime hours \u00d7 1.5 = total overtime pay\u201d. Additionally, there must be one day off. But if the employer does not provide it, the employee must receive a bonus equal to 150% of their basic payment.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Using the previous example, an employee has a salary of AED 2,600 and did 8 hours of overtime. In this case, the <\/span>public holiday overtime calculation in the UAE<span style=\"font-weight: 400;\"> goes like this:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">2600 <\/span><span style=\"font-weight: 400;\">\u00d7 12\/365\/8 \u00d7 8 \u00d7 1.5 = 128 (8 hours pay + 1 day off)<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In case the employer does not provide the additional day off, the employee receives a 150% bonus. Therefore, this is how the public <\/span>holiday overtime calculation in the UAE goes:<\/p>\n<p><span style=\"font-weight: 400;\">2600 <\/span><span style=\"font-weight: 400;\">\u00d7 12\/365\/8 \u00d7 8 \u00d7 2.5 = 213 (8 hours overtime pay)<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"5_How_should_employers_calculate_overtime_if_an_employee_works_on_Public_Holiday\"><\/span><strong>5. How should employers calculate overtime if an employee works on <\/strong>Public Holiday<strong>?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The <\/span>overtime calculation in the UAE during <span style=\"font-weight: 400;\">Public holidays<\/span><span style=\"font-weight: 400;\"> can be slightly different from the previous cases. If the employer requires an employee to work on Public holidays or their day off, the employer has two options. The first one is to provide another day off. But the employer cannot opt for the first option, then the second must be chosen.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The second option is opting for Public holidays<\/span><b>\u00a0overtime calculation in the UAE<\/b><span style=\"font-weight: 400;\"> and paying the employee their basic salary plus 50% over normal working hours. The formula, in this case, is: \u201cbasic salary <\/span><span style=\"font-weight: 400;\">\u00d7 12\/365\/8 \u00d7 total overtime hours \u00d7 1.5 = off day paid\u201d. For example, an employee has a salary of AED 2,600 and did 12 hours of overtime:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">2600 <\/span><span style=\"font-weight: 400;\">\u00d7 12\/365\/8 \u00d7 12 \u00d7 1.5 = 192 (12 hours overtime payment)<\/span><\/p>\n<p><a href=\"https:\/\/connectresources.ae\/contact\/?utm_source=contactus&amp;utm_medium=tracking&amp;utm_campaign=calltoaction&amp;utm_id=website\"><img decoding=\"async\" class=\"alignnone wp-image-27238 size-full\" src=\"https:\/\/connectresources.ae\/wp-content\/uploads\/2023\/03\/2.png\" alt=\"\" width=\"6912\" height=\"2304\" srcset=\"https:\/\/connectresources.ae\/wp-content\/uploads\/2023\/03\/2.png 6912w, https:\/\/connectresources.ae\/wp-content\/uploads\/2023\/03\/2-300x100.png 300w, https:\/\/connectresources.ae\/wp-content\/uploads\/2023\/03\/2-1024x341.png 1024w\" sizes=\"(max-width: 6912px) 100vw, 6912px\" \/><\/a><\/p>\n<h2><span class=\"ez-toc-section\" id=\"6_How_can_Connect_Resources_help_you_calculate_overtime_to_accurately_pay_your_employees\"><\/span><strong>6. How can Connect Resources help you calculate overtime to accurately pay your employees?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Carrying out the <\/span>overtime calculation in the UAE<span style=\"font-weight: 400;\"> is a very important process that all companies must complete without mistakes. Therefore, in case your company needs help to complete it, you should request advice and services from <\/span><a href=\"https:\/\/connectresources.ae\/about-us\/\"><span style=\"font-weight: 400;\">Connect Resources&#8217;<\/span><\/a><span style=\"font-weight: 400;\"> specialists. And with our <\/span><span style=\"font-weight: 400;\">payroll outsourcing<\/span><span style=\"font-weight: 400;\"> solutions, we will be able to take care of processes like calculating overtime and more.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In addition, if you desire to increase the efficiency of your overall HR processes, getting <\/span><a href=\"https:\/\/connectresources.ae\/hr-outsourcing\/\"><span style=\"font-weight: 400;\">HR outsourcing services<\/span><\/a><span style=\"font-weight: 400;\"> is your solution. By letting our experts take care of several <a href=\"https:\/\/connectresources.ae\/hr-services\/\">HR tasks<\/a>, you and your company can focus on more important activities. And you will also be able to enjoy many other excellent benefits and advantages that we can provide you with.<\/span><\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-11621 size-full\" src=\"https:\/\/connectresources.ae\/wp-content\/uploads\/2022\/05\/logo-connect-resources-color.png\" alt=\"\" width=\"1239\" height=\"387\" srcset=\"https:\/\/connectresources.ae\/wp-content\/uploads\/2022\/05\/logo-connect-resources-color.png 1239w, https:\/\/connectresources.ae\/wp-content\/uploads\/2022\/05\/logo-connect-resources-color-300x94.png 300w, https:\/\/connectresources.ae\/wp-content\/uploads\/2022\/05\/logo-connect-resources-color-1024x320.png 1024w\" sizes=\"(max-width: 1239px) 100vw, 1239px\" \/><\/p>\n<p><b>Do you desire to get more information about the calculation of overtime in the UAE?<\/b><span style=\"font-weight: 400;\"> Then please, <strong><a href=\"https:\/\/connectresources.ae\/contact\/\">get in touch<\/a><\/strong> with Connect Resources so you can get full guidance on this topic and every detail that it involves. And if you desire to talk to one of our payroll specialists directly, make sure to call us at <\/span><b>+971 43 316 688<\/b><span style=\"font-weight: 400;\">. Furthermore, you can also get more information and tips by sending us an email at <\/span><a href=\"mailto:contact@connectresources.ae\"><b>contact@connectresources.ae<\/b><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Have you been looking for <a href=\"https:\/\/connectresources.ae\/job-opportunities-dubai-waiting-for-you\/\">job opportunities in Dubai<\/a> that fit your skills and experience? Quit wasting your time and visit the best job platform in the Middle East to quickly find the most suitable job offers. The <\/span><a href=\"http:\/\/thetalentpoint.com\" target=\"_blank\" rel=\"noopener\"><b>thetalentpoint.com<\/b><\/a><span style=\"font-weight: 400;\"> website will allow you to explore a variety of job opportunities, meanwhile, you can send an email at <\/span><a href=\"mailto:contact@thetalentpoint.com\"><b>contact@thetalentpoint.com<\/b><\/a><span style=\"font-weight: 400;\"> and submit your application, which will be reviewed by our best recruiters.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The payroll function of any company in the UAE involves many elements that employers must calculate before processing employee payments. For example, one of the most important ones is the overtime calculation in the UAE. But before calculating this payroll factor, it is important to know its value, legal aspect, and every other related detail&#8230;.<\/p>\n","protected":false},"author":115424,"featured_media":42252,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1000],"tags":[],"table_tags":[],"class_list":["post-12306","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-payroll-outsourcing"],"acf":[],"_links":{"self":[{"href":"https:\/\/connectresources.ae\/wp-json\/wp\/v2\/posts\/12306","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/connectresources.ae\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/connectresources.ae\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/connectresources.ae\/wp-json\/wp\/v2\/users\/115424"}],"replies":[{"embeddable":true,"href":"https:\/\/connectresources.ae\/wp-json\/wp\/v2\/comments?post=12306"}],"version-history":[{"count":23,"href":"https:\/\/connectresources.ae\/wp-json\/wp\/v2\/posts\/12306\/revisions"}],"predecessor-version":[{"id":55574,"href":"https:\/\/connectresources.ae\/wp-json\/wp\/v2\/posts\/12306\/revisions\/55574"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/connectresources.ae\/wp-json\/wp\/v2\/media\/42252"}],"wp:attachment":[{"href":"https:\/\/connectresources.ae\/wp-json\/wp\/v2\/media?parent=12306"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/connectresources.ae\/wp-json\/wp\/v2\/categories?post=12306"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/connectresources.ae\/wp-json\/wp\/v2\/tags?post=12306"},{"taxonomy":"table_tags","embeddable":true,"href":"https:\/\/connectresources.ae\/wp-json\/wp\/v2\/table_tags?post=12306"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}