Overtime Calculation in UAE

Overtime Calculation in UAE

The UAE Labour Law clearly states the legal rights of an employee when it comes to the number of hours that s/he is expected to work during a week.
Work time in the UAE is set at 48 hours a week, and officials of the country’s Ministry of Human Resources and Emiratisation (earlier known as Labour Ministry) have gone on record to say that employers who force their workers to exceed that limit without paying them are violating labour rules.
Article 65 of the UAE Labour Law states that the maximum number of ‘ordinary’ working hours for adult workers shall be eight hours per day – i.e., 48 hours per week. 
However, an employer is well within their right to ask their employee to work overtime, but they’re required to pay the worker accordingly for the number of extra hours s/he puts in.
 “The Labour Law in the UAE stipulates that the work time is eight hours a day for a maximum six days a week.
“This can be extended to nine hours but this extra hour must be deducted from work time on another day.
“For the whole week, the work time is a maximum 48 hours and those who work more must be paid for the extra hours.”
However, the number of hours may be increased to nine hours per day for people employed in trade, hotels, cafeterias, security and other jobs in consultation with the Ministry of Labour.
On the other hand, the daily number of working hours may be reduced for strenuous or harmful works after a decision from the authorities.an employer may have their employee/s work on their weekly day off in return for extra wages, but they are not allowed to oblige them to work for two consecutive holidays.
The Law states that any hours worked in excess of the ‘normal hours’ (which vary depending on whether the employee normally works five or six days per week) shall be treated as overtime.
Article 67 of the Law highlights that should the work circumstances require a worker to work more than the ordinary working hours, the additional period shall be deemed overtime.
For these additional work hours, the worker shall be paid a wage equivalent to the ordinary hourly wage with an addition of at least 25 % of the said wage. So, a worker earning, say, Dh100 per hour shall be entitled to Dh125 for every hour of overtime s/he works on a given working day.
Overtime Calculation in UAE.
How to calculate:
1.       Gross Salary X 12/365= per day salary
2.       Per day Salary/8=Per hour salary
3.       Overtime amount is =Number of overtime hours X Per hour salary X 1.25
This is applicable when the worker works extra immediately before or after the accepted office hours in the country.
If the extra work takes place during odd hours, the amount payable to the employee goes up. article 68 of the Law clarifies that, if a worker works overtime between 9pm and 4am, s/he shall be entitled to the ordinary hourly wage with an addition of at least 50 % of the said wage.
The same hypothetical Dh100 per hour pay in the example above then will go up to Dh150 per hour if the said worker is asked to work overtime at odd hours.
How to calculate:

1.        Gross Salary X 12/365= per day salary

2.        Per day Salary/8=Per hour salary

3.        Overtime amount is =Number of overtime hours X Per hour salary X 1.5

Overtime during weekends is also clarified in the Law.
Article 70 elaborates that Friday shall be the ordinary weekly rest for all workers with the exception of the daily workers.
The law specifies one paid rest day after a maximum 6 days of work.
“Should the circumstances require that the worker work on this day, the worker shall be entitled to a substitute rest day, or to the basic wage for the ordinary working hours in addition to 50 per cent at least of the said wage.”
In addition to this clause, Article 71 adds that the worker may not be requested to work for more than two consecutive Fridays with the exception of day workers.
How many hours of overtime can I be asked for?
Two hours per day, in a nutshell, unless it is an emergency.
Article 69 of the UAE Labour Law says that “overtime working hours for an employee may not exceed two hours per day, unless such work is necessary for the prevention of the occurrence of a colossal loss, a serious accident or the removal or mitigation of the consequences thereof.”
Are their exceptions to the rule/s?
Most certainly. Some of these rules do not apply to certain employees as mentioned in Article 72. These include employees in managerial or supervisory positions and workers constituting the crew of naval vessels, and sea workers who shall enjoy special service conditions due to the nature of their work, with the exception of the port workers engaged in the loading and unloading and related operations.

Overtime Calculation in UAE

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