How to calculate Overtime as per UAE Law? Employers must be aware of the working hours you rendered to the company. In your contract, it was clearly stated that working hours you’ll need to stay. In excess of it, should be considered as overtime. Working hours in UAE is governed by UAE Labour law. Overtime is calculated on the basis of Gross Salary. There are a lot of jobs which requires an employer to work excess hours whether an employer is entitled of it or not. Overtime always depends on the role of the employees and the working hours of the company. Each employee should be aware of the normal working hours and how many additional hours an employer asked to work.
However, overtime provisions will not be applicable to the following positions:
a) Senior Positions
b) Administrative Supervising Roles
c) Crews of Naval ships and Marine Employees
As per UAE Labour Law, an employee’s normal working days should not exceed 8 hours or 48 hours per week. But, an employer can request an employer to perform up to 2 hours of additional work, which of course treated as OVERTIME. However, working hours may be increased to nine hours per day those working in trade, hotels, guards.
Simple Computation of normal OT (as per UAE Law).
The payment should be equivalent to wage period for the ordinary working hours plus and increases of not less than 25% of the wage for the overtime period.
Example: Gross Salary (GS) x 12/365=per day salary Per day (PD) salary / 8 = per hour salary OT amount is = No. of OT hours x per hour salary x 1.25 For Friday Overtime normally are Friday Dayoffs or Weekends off. If the situation requires the employer to work on a Friday, he/ she must be given another day off or receive his/ her salary plus additional 50% of his salary.
Ex: GS x 12 / 365 = per day salary PD salary/ 8 = per hour salary OT amount is = No. of OT hours x per hour salary x 1.5 or An additional off.
For Public Holidays. As per UAE Law, if the worker requires to work on a public holiday or rest day in respect pf which he / she should is entitled to full or partial pay, should be granted additional leave, together with a bonus equal to 50% of his/ her salary. If he is not compensated for such days by leave, he/ she should receive equal to 150% of his basic salary of the days worked.
Ex: GS/30 = per day salary PD salary / 8 = per hour salary OT = No. of OT hours x per hour salary x1.5 in addition to one day off. or GS / 30 = per day salary PD / 8 = per hour salary OT = No. of OT hours x per hour salary x 2.5 The above details are guidelines for everyone to know how to compute your excess hours and make sure that you will receive the right amount worked. Calculation of overtime is very easy and is clearly stated in UAE Labour Law. You may visit UAE Labour Law for more details and information.