UAE Overtime: The +25% Rule Explained

October 23, 2026

Per Article 17 of UAE Labour Law, standard daytime overtime is paid at the employee's normal hourly wage plus a 25% premium, with the hourly wage derived from basic salary — this is the baseline rate that applies before night-hours or off-day premiums come into play.

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Worked Example

Monthly basic salary: AED 7,500. Assuming a standard structure of roughly 30 days × 8 hours = 240 working hours per month for this calculation, hourly rate ≈ 7,500 ÷ 240 = AED 31.25.

  • Overtime rate: 31.25 × 1.25 = AED 39.06 per overtime hour
  • For 3 overtime hours: 3 × 39.06 = AED 117.19

Hourly Conversion Can Vary

The exact monthly-to-hourly conversion depends on the specific calculation method used (such as the actual number of working days in a given month) — this example uses a standard round-number structure for illustration, so always confirm the specific method your employer or payroll system applies.

Frequently Asked Questions

What's the standard UAE overtime premium?

+25% on top of the normal hourly wage, per Article 17, for standard daytime overtime hours.

Is UAE overtime based on basic salary or total salary?

Basic salary, which is used to derive the hourly rate that the +25% premium is applied to.

What's the overtime rate for an AED 31.25 hourly wage?

AED 39.06 per hour (31.25 × 1.25).

Does the hourly rate conversion method vary?

Yes — the exact monthly-to-hourly conversion can depend on the specific method used; confirm the approach your employer applies.