Overtime Calculates in UAE- The overtime is an extra payment to the employees for working additional hours over the normal working hours.
It is the normal practice in many countries, employees work for 8hrs a day and 48hr a week. If someone calls for work an extra hour than it considers the overtime.
Every nation has a labor law, the purpose of it is to prevent the employee from being exploited by their respective employers.
The overtime law also comes into the labor law which designed to prevent employers from forcing employees to work excessively long hours.
In this post, I want to discuss the employees’ rights and privileges which has granted by UAE Labour Law in terms of a working hour and provision of overtime.
I found many people who are working in the UAE majority of unskilled workers, don’t know how the company calculates their overtime and other compensations. Not only the unskilled worker but also many professionals have confused about this matter too.
Although the labor law has elaborated on the overtime in UAE many companies do not comply with it.
According to the labour law of the UAE. The company can not force you to perform overtime. If an organization wants you to go for overtime, your permission is required.
There are good and bad companies in the UAE, some good companies that pay according to labor laws, but some bad companies pay less than labor law.
If you want to just overtime calculation in UAE, don’t worry because we have the overtime calculator in UAE, just input your data and get the results. The calculator has developed according to the UAE labour law, so, the calculation is accurate and reliable.
Overtime Calculates in UAE (Good company )
Per day salary = basic salary/30days
Per hour salary = basic salary/30days/8hrs
Overtime Calculates in UAE (Bad company )
Per day salary = basic salary×12/365
Per hour salary = basic salary×12/365/8hrs
This above difference has shown not all the companies in the UAE have followed the labor law. You may find the variation on the overtime paid between the company to company.
Another disgusting thing is you and your counterpart who is working for different companies with a similar basic salary and have done equal hours of OT, at the end of the month the salary will not be similar.
Now, let’s look at the provision of UAE labor law, how should your company needs to calculate the overtime for the employees.
The overtime will pay higher than normal hours of work but you need to know. Is it according to the Law or not?
Most of the jobs in UAE, the companies require an extra hour of work from the employees. The labor law does concern to all types of works, therefore, you need to know whether you are entitled overtime or not.
As per the labor law of the United Arab Emirates, the following position are not applicable for overtime but they may receive huge bonuses in terms of contributing to the company’s growth by working extra hours.
Overtime is not applicable
- Senior positions.
- Administrative supervisors.
- The crew of naval ships and marine employees.
- 8 hours a day or 48 hours a week unless an employee works in a trade, hotel, and security guard the working hours can be increased 9 hours a day maximum.
- Traveling between work and home and the 1-hour break is not included in overtime.
- 8 hours a day is reduced to 6 hours during the Ramadan.
- If an employer wants an employee to work overtime, this can only be done with the employee’s consent. The employer cannot force you to work overtime.
- The extra overtime hours shall not exceed 2hrs per day meaning the maximum of 11hrs.
- If the nature of a job requires overtime the employee shall be paid overtime, adding 25% on the normal working hours rate. If you work between 9 pm-4 am then the pay rate is plus 50% on the normal working hrs.
How do the UAE companies calculate the Overtime on a normal day?
Basic salary×12/365days/8hrs = 1hrs payment.
supposed your basic salary is 2600 AED and you did overtime 120 hours in a month your salary will be. (Normal 1 hour pay + 25% = 1hrs over-time)
2600×12/365/8 = 10.68 normal hour pay
10.68+10.68 X 25% =13.35 per hour over-time.
Now total overtime hrs X per hrs over-time pay
120 X 13.35 = 1602 total overtime pay
Now basic salary + total overtime pay
2600+ 1602 = AED 4202 monthly payment.
short formula:– Basic salary+ basic salary ×12/365/8 × total hrs overtime ×1.25 = Monthly salary.
2600+2600×12/365/8 ×120 X1.25 = 4202
Calculation overtime from 9 pm to 4 am
Although it is the normal day, your overtime falls from 9 pm to 4 am the employer has to pay 50% more than the normal working hours.
Short formula:- basic salary ×12/365/8 X total overtime hrs X 1.5 = overtime pay.
An employee Works on Friday or off-day
If circumstances require the employee to work on Friday or his off day he must be granted either another day off or receive a basic salary also 50% as over-time.
Short formula:– basic salary ×12/365/8 X total overtime hrs X 1.5 = off day paid.
If you did 12hrs OT on you off day then the company will pay according to this formula.
2600 X12/365/8 X 12 X 1.5 = 192 (12hrs OT payment).
An employee Works on a public holiday.
Where the circumstances of the work make it necessary for a worker to work on public holidays or rest day in respect of which he/she is entitled to full or partial pay, he shall be granted compensatory leave in respect of such days, together with a bonus equal to 50cent of his pay.
If he is not compensated for such days by leave, his employer shall pay him a bonus equal to 150% of his basic payment in respect of the days worked.
2600X12/365/8 X total overtime hrs X 1.5 = total over-time pay. In addition one day off. If the employer does not want to another day off need to pay 150%
Supposed you did 8hrs overtime in the public holiday lets see how to calculate.
2600X12/365/8 X OT 8hrs X 1.5 = 128 (8hrs pay +1day off)
If the company did not give you off so you are entitled to 150% compensation
2600X12/365/8X OT 8hrs X 2.5 = 213 (8 hrs over-time)
The above Salary calculation as per the labor law of UAE. If the employer fails to pay, you can make a complaint to the MOL ( Ministry Of Labour).