This is the calculator for Overtime Calculation in UAE. This is a tool that allows you to calculate your overtime salary very simply. As an employee in the United Arab Emirates, understanding how your Overtime Calculation in UAE is done is essential to ensure you’re being compensated fairly for your extra hours of work.
UAE Overtime Calculator
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What is Overtime in UAE?
Overtime Calculation in UAE
Knowing how to perform Overtime Calculation in UAE can significantly impact your monthly earnings.
Overtime refers to any work performed beyond the normal working hours as stipulated in your employment contract. In the UAE, the standard working hours are 8 hours per day or 48 hours per week. During the holy month of Ramadan, working hours are reduced to 6 hours per day for Muslim employees.
For accurate Overtime Calculation in UAE, consider various factors like basic salary and total overtime hours worked.
To understand Overtime Calculation in UAE, let’s delve into the methods commonly used by employers.
How to Calculate Overtime in UAE
The Overtime Calculation in UAE can sometimes change based on the company’s policies.
There are two correct methods for calculating overtime pay in UAE. We’ll explain both and provide examples.
Method 1: Standard Method (Basic Salary ÷ 30 days)
This is the most commonly used method by UAE companies:
When considering Overtime Calculation in UAE, remember to factor in both regular and night hours.
Many employees benefit from a clear understanding of Overtime Calculation in UAE.
To simplify Overtime Calculation in UAE, utilize tools and calculators that are available online.
- Calculate Daily Wage: Basic Salary ÷ 30 days
- Calculate Hourly Wage: Daily Wage ÷ 8 hours
- Calculate Overtime Rate:
o Regular overtime (normal days): Hourly Wage × 1.25
o Night shift overtime (10 PM – 4 AM): Hourly Wage × 1.5
o Rest day overtime with substitute day: Hourly Wage × 1.5
o Rest day overtime without substitute day: Hourly Wage × 2.5
Method 2: Alternative Method (Basic Salary × 12 ÷ 365)
Some companies use this alternative method:
Companies can provide guidance on the Overtime Calculation in UAE to help employees understand their pay.
Each company may have unique methods for Overtime Calculation in UAE, so always verify with HR.
In practical terms, Overtime Calculation in UAE will vary based on individual circumstances.
Understanding the Overtime Calculation in UAE ensures that you receive fair compensation.
When calculating your pay, remember the importance of Overtime Calculation in UAE.
- Calculate Daily Wage: (Basic Salary × 12) ÷ 365 days
- Calculate Hourly Wage: Daily Wage ÷ 8 hours
- Apply the same overtime rates as Method 1
Practical Examples of Overtime Calculation
Example 1: Normal Day Overtime
Let’s say an employee earns a basic salary of 3,650 AED and works 100 hours of overtime in a month:
Using Method 1:
• Daily Wage = 3,650 ÷ 30 = 121.67 AED
With accurate Overtime Calculation in UAE, employees can manage their finances better.
The details in your Overtime Calculation in UAE might influence your next salary negotiation.
• Hourly Wage = 121.67 ÷ 8 = 15.21 AED
• Overtime Rate = 15.21 × 1.25 = 19.01 AED per hour
• Total Overtime Pay = 19.01 × 100 = 1,901 AED
• Total Monthly Salary = 3,650 + 1,901 = 5,551 AED
Using Method 2:
• Daily Wage = (3,650 × 12) ÷ 365 = 120 AED
• Hourly Wage = 120 ÷ 8 = 15 AED
Many resources are available for learning about Overtime Calculation in UAE effectively.
• Overtime Rate = 15 × 1.25 = 18.75 AED per hour
• Total Overtime Pay = 18.75 × 100 = 1,875 AED
Ensure that your company adheres to Overtime Calculation in UAE as per labor laws.
• Total Monthly Salary = 3,650 + 1,875 = 5,525 AED
Example 2: Public Holiday Overtime
If the same employee works 8 hours on a public holiday:
With a substitute day off provided:
• Hourly Wage = 15 AED (using Method 2)
• Overtime Rate = 15 × 1.5 = 22.5 AED per hour
• Total Holiday Overtime Pay = 22.5 × 8 = 180 AED
Without a substitute day off:
• Overtime Rate = 15 × 2.5 = 37.5 AED per hour