UAE Overtime Calculator | Calculate Overtime Pay

We all know that workplaces run on tight schedules, but when hours stretch beyond the ordinary time limit, compensation gets complicated fast. That’s why in the UAE, the labour laws clearly define that those extra hours should be rewarded.

As per Article 17 of the Federal Decree Law No. 33 of 2021, the UAE sets standard work hours in the private sector. Once you go beyond that, it’s time for overtime payment.

Here, you have to account for normal working hours, night shifts, public holidays, and even limits on how much overtime is allowed per day. Getting it right is good for both the employer and employees, as employees get what they deserve and employers get protected from legal liabilities.

What Is an Overtime Calculator?

An overtime calculator is actually a tool, often digital, that helps employers calculate how much overtime pay an employee should get. Unlike manual calculations that rely on formulas you have to remember or interpret, the calculator applies UAE labour rules in the background to provide you with precise figures instantly.

What’s clear under the hood is this: overtime isn’t calculated on your entire salary, only the basic hourly salary. That’s a legal requirement under UAE labour law.

What counts as “normal” working hours in the UAE

The legal baseline matters because overtime is measured from it. In the UAE, the standard work hours are up to 8 hours per day and 48 hours per week, and anything beyond these limits triggers overtime rules.

• If employees exceed these hours, those extra hours are overtime.

The correct hourly base: don’t use the wrong number

Overtime pay is calculated from the basic salary, not the full salary package.

The multipliers: how much extra is “extra”?

We all know there are different kinds of overtime. So, apply the multiplier that matches the timing of the work:

Extra hours on a regular workday: 1.25× the hourly rate. (25%)

Night work (10 pm to 4 am): 1.5× the hourly rate. (50%)

For double-time shifts, it is: 2.0× the hourly rate.

Public holidays often carry higher premiums or a compensatory day off if no extra pay is provided.

If you’re manually checking a payslip, multiply the hourly base by the correct factor and then by the number of overtime hours. These are the standard multipliers used across UAE payroll practice.

Quick worked example

Let’s imagine the basic salary is AED 25 per hour.

Extra daytime hours worked this week: 4 hours at 1.25×

Calculation:

Overtime pay = 25 × 1.25 × 4 = AED 125

If the same 4 hours were weekend/night hours at 1.5×:

Overtime pay = 25 × 1.5 × 4 = AED 150.

Automating this with an overtime calculator removes manual rounding errors and provides auditable results.

Manual Calculation vs Overtime Calculator: Which Is More Accurate?

Most of the HR professionals often start with a spreadsheet. But spreadsheets are only as good as the formulas entered. Manual calculation is prone to errors like:

• Using gross salary instead of basic salary,

• Mixing up the right multiplier,

• Forgetting night shift or holiday premiums,

• Miscomputing hourly rates.

An overtime calculator easily eliminates these risks by applying consistent logic every time.

Instead of remembering “is it 1.25 or 1.5?”, the calculator just does it correctly, every time. That’s precision where it counts, especially when your payroll has dozens or hundreds of employees.

When overtime is not paid: the common scenarios

Overtime isn’t automatic in every situation. Employers don’t pay overtime when:

• Hours don’t surpass the daily or weekly legal threshold. No overtime if you stay inside the 8-hour/48-hour rule.

• Work was not authorized or approved. Unapproved overtime can be excluded depending on the contract and policy.

• The employee is contractually exempt from certain managerial or senior executive roles.

• The employer provides time off in lieu instead of cash, where that arrangement exists and is agreed upon.

Always check the employment contract and any official internal policies alongside the law. These are the circumstances that frequently cause misunderstandings when payroll teams or employees assume extra hours always equal extra cash.

Payroll mistakes that trip up even experienced teams

• Using gross pay instead of basic pay as the base.

• Solution: Make basic salary a mandatory field in payroll logic and lock it for calculations.

• Mixing up daily vs weekly thresholds.

• Solution: Compute both and apply whichever produces overtime sooner; document the rule.

• Overlooking night, weekend, and holiday multipliers.

• Solution: Tag those different shifts by different types in your time-tracking tools so the multiplier can be applied automatically.

Fixing these issues can prevent you from making messy corrections later.

Tips: How to make overtime calculation painless

If you’re responsible for payroll, HR, or managing a small business, these small changes can make your life easier:

• Tag every shift with a code like regular / night/weekend / public holiday. Your payroll engine can then apply the right multiplier automatically.

• Require digital approval for overtime before payroll cut-off. It can easily prevent any kind of disputes and also keep your records tidy.

• Always provide your employees with transparent pay slips. It’ll show them hourly base, overtime hours by type, multipliers used, and gross overtime total. This clarity will definitely reduce disputes.

These changes don’t just reduce errors. Also, they build trust with your employees.

When to use software versus manual

Small businesses often manage overtime in spreadsheets at first. That works until team size, roster complexity, or overtime frequency increases. Use software when:

• You have multiple shift types (night/weekend/holiday).

• You require approvals and audit trails.

• You must run mass payrolls quickly and accurately.

Modern payroll software that understands UAE rules will apply the right hourly base and multipliers and produce auditable reports, saving time and protecting you from compliance risk. But even with software, you still need clear policies and accurate time capture.