Last Updated on August 30, 2024 by Vadim
Overtime compensation is a crucial aspect of employment in the United Arab Emirates. This guide provides a detailed breakdown of overtime regulations, calculations, and special considerations under UAE labour law.
Standard Working Hours in UAE
Before delving into overtime, it’s essential to understand the standard working hours:
- 8 hours per day or 48 hours per week (6-day work week)
- Some sectors (e.g., hospitality) may have 9-hour workdays
Overtime Regulations in UAE
Basic Overtime Rate
- Regular overtime: 125% of normal hourly rate
- Calculation: Regular hourly wage + 25% additional
Night Shift Overtime (9 PM to 4 AM)
- Rate: 150% of normal hourly rate
- Calculation: Regular hourly wage + 50% additional
Overtime Limits
- Should not exceed 2 hours per day under normal circumstances
How to Calculate Overtime Pay in UAE
- Determine basic hourly rate: (Monthly basic salary ÷ 30 days) ÷ 8 hours
- Regular overtime: Hourly rate x 1.25 x number of overtime hours
- Night shift overtime: Hourly rate x 1.50 x number of overtime hours
Special Cases for Overtime in UAE
Public Holidays and Rest Days
- Compensation: 150% of normal wage
- Option: Choose between a day off or additional pay
Ramadan Working Hours
- Standard workday reduced by 2 hours
- Overtime calculations adjusted accordingly
Exemptions from Overtime Pay
- Government employees (separate regulations apply)
- Some senior management or supervisory roles
Sector-Specific Overtime Regulations
- Certain sectors may have different rules set by MOHRE
- Free zones may have their own overtime regulations
Enforcement and Dispute Resolution
- Ministry of Human Resources and Emiratisation (MOHRE) enforces labour laws
- Employees can file complaints with MOHRE for violations
Recent Changes to UAE Labour Law
The 2021 amendments introduced more flexible work arrangements, potentially impacting overtime calculations in some cases.
Conclusion
UAE labour law provides comprehensive protection for employees regarding overtime compensation. It ensures fair pay for extra hours worked while allowing flexibility in specific sectors and situations. Both employers and employees should stay informed about these regulations to maintain fair and compliant work practices.
For the latest updates on UAE labour laws and employment practices, follow JobXDubai, your trusted source for job market insights in the Emirates.
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