UAE Overtime Is Based on Basic Salary — Here's Why That Matters
October 23, 2026
Like gratuity and leave encashment, UAE overtime pay is calculated from basic salary, not total gross salary — this means the hourly rate used as the overtime base can be meaningfully lower than what someone might assume if they start from their full monthly take-home pay.
Skip the math and get your answer instantly:
Open the UAE Overtime Pay Calculator →Worked Comparison
Total monthly salary: AED 12,000 (AED 7,000 basic + AED 5,000 allowances). Using a 240-hour monthly structure for this illustration:
- Correct (basic only): hourly rate = 7,000 ÷ 240 = AED 29.17; one hour of standard overtime = 29.17 × 1.25 = AED 36.46
- Incorrect (gross salary): hourly rate = 12,000 ÷ 240 = AED 50; one hour of standard overtime = 50 × 1.25 = AED 62.50
- Overstatement from the mistake: roughly 71% higher per overtime hour
Confirming Your Basic Salary
As with other UAE calculations in this series, finding the basic salary line item specifically on your contract or salary certificate — rather than using your combined take-home figure — is the key step to getting an accurate overtime estimate.
Frequently Asked Questions
Is UAE overtime based on gross salary or basic salary?
Basic salary only — the same base used for gratuity and leave encashment.
How much can using gross salary overstate overtime pay?
It depends on the allowance proportion — in the worked example here, it overstated the overtime rate by roughly 71%.
Where do I find my basic salary figure?
Your employment contract or salary certificate should list it separately from allowances.
Does this affect both daytime and night/off-day overtime rates?
Yes — all overtime premiums are applied on top of the basic-salary-derived hourly rate.