TRW & Co · Employment law
Working Hours and Overtime Under UAE Labour Law
Overtime UAE labour law rules set normal private-sector hours at 8 a day or 48 a week, cap overtime at two extra hours a day, and pay the basic-wage hourly rate plus at least 25 per cent, or 50 per cent at night and on rest days. Ramadan hours, public holidays, senior-staff exemptions and the DIFC and ADGM all change the answer.
Key pointOvertime is calculated on basic wage, not the total package, and must be tracked by category (ordinary, night, rest day, public holiday), so a payroll that pays a single flat overtime rate is almost always wrong for someone.
At a glance
8 hours, 48 a week
Article 17 of the federal Labour Law sets normal private-sector hours at 8 a day or 48 a week, with sector variations allowed by the Executive Regulations.
Two-hour daily cap
An employer may require overtime, but the extra hours must not exceed two in a single day outside genuine emergencies such as preventing serious accidents.
25% or 50% supplement
Overtime is paid at the basic-wage hourly rate plus 25 per cent, rising to 50 per cent between 10 pm and 4 am, except for shift workers.
Rest days and holidays
Rest-day work earns a substitute day or basic pay plus 50 per cent; public-holiday work earns a substitute day or the day's wage plus 50 per cent.
DIFC and ADGM differ
The financial free zones apply their own regimes; ADGM caps hours at 48 in seven days without written consent and sets no statutory overtime rate.
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Overtime UAE labour law rules start from a simple baseline: a private-sector employee's normal hours are 8 a day or 48 a week, overtime is limited to two extra hours a day, and extra hours are paid at the basic-wage hourly rate plus at least 25 per cent, or 50 per cent at night and on rest days. Ramadan, rest days, public holidays, shift work and the DIFC and ADGM all add important variations.
This guide is written for HR leads, finance teams, founders and employees who need the working answer rather than a summary of the statute. It covers the federal Labour Law, how overtime is calculated in practice, the Ramadan and summer adjustments, the exemptions that are often misapplied, and how the two financial free zones differ. It reflects the position as of October 2026.
The short answer: overtime UAE labour law at a glance
| Rule | Federal position | Practical note |
|---|---|---|
| Normal hours | 8 hours a day or 48 hours a week | Some sectors and categories may differ under the Executive Regulations |
| Breaks | One or more breaks totalling at least one hour after five consecutive hours | Breaks are not counted as working hours |
| Overtime limit | No more than two extra hours in one day | Track daily, not just monthly |
| Ordinary overtime pay | Hourly basic wage plus at least 25% | Calculated on basic salary, not total package |
| Night overtime (10 pm to 4 am) | Hourly basic wage plus at least 50% | Does not apply to shift workers in the same way |
| Work on the rest day | Substitute rest day, or basic wage plus at least 50% | Agree the choice in writing each time |
| Work on a public holiday | Substitute day, or day's wage plus at least 50% of basic wage | Separate rule from rest-day work |
| Ramadan | Reduced hours announced each year | Pay is not reduced |
These are statutory minimums. A contract or company policy may be more generous, but a clause that gives an employee less than the law requires is void. Senior employees and certain categories may be treated differently, which is where most disputes start.
Where the rules come from
The governing statute is Federal Decree-Law No. 33 of 2021 Regulating Labour Relations, read with its Executive Regulations issued by Cabinet Resolution No. 1 of 2022. The Ministry of Human Resources and Emiratisation (MOHRE) administers the law, inspects employers and handles labour complaints. The government portal publishes an official summary of the working hours and overtime rules.
Article 17 of the Labour Law fixes normal hours at 8 a day or 48 a week, and allows the Executive Regulations to increase or reduce daily hours for particular economic sectors or categories of workers. Overtime, rest days and holiday work are dealt with in the articles that follow. The detail matters, so payroll rules should be checked against the current consolidated text rather than an old handbook written under the pre-2022 law.
Who the federal rules cover
The federal rules apply to private-sector employers on the mainland of every emirate and in most free zones, such as DMCC, JAFZA or IFZA, where the free zone authority handles licensing and visas but the employment relationship is governed by the Labour Law. Domestic workers are covered by a separate law.
The DIFC Employment Law and the ADGM Employment Regulations replace the federal rules for employers in those centres. Their approach to hours and overtime is quite different, as the comparison below explains.
Normal hours, breaks and rest days
The 48-hour week is a ceiling for normal hours, not a target. Many offices work 40 to 45 hours over five days, and the contract or company policy should state the actual schedule. Under the overtime UAE labour law framework, hours worked beyond the agreed normal schedule but within 48 a week are not automatically overtime; the question is what the contract defines as normal working hours and whether the statutory limits are exceeded.
Several further rules sit around the core limit:
- Breaks. An employee who works five consecutive hours is entitled to one or more breaks totalling at least one hour. Breaks are not counted as working time.
- Commuting. Time spent travelling between home and the workplace is not working time, except for categories specified in the Executive Regulations.
- Several employers. Where an employee works for more than one employer under the flexible work models, no employer may require more hours than the contract states unless the employee agrees in writing.
- Remote work. If an employee works remotely, from inside the UAE or abroad, the employer must specify working hours. This is the hook for overtime claims by remote staff.
- Weekly rest. Every employee is entitled to at least one paid rest day a week. It no longer has to be Friday; the contract or work regulations fix the day.
The summer midday break
Each year a ministerial resolution bans work performed directly under the sun in open places between 12.30 pm and 3 pm from 15 June to 15 September. Construction, logistics and facilities employers must reschedule outdoor work, provide shaded rest areas and record compliance. MOHRE inspects during the summer and penalises breaches per worker, so shift plans for outdoor teams should be fixed before June.
How overtime is calculated and paid
Overtime UAE labour law rules allow an employer to require overtime, but the extra hours may not exceed two in any day. Hours beyond that cap are only defensible in genuine emergencies, such as preventing a serious accident or limiting its consequences, and the law also caps total hours across a longer reference period. Routine reliance on longer days is a compliance problem regardless of how well the hours are paid.
When the employee works beyond normal hours, the official summary on the government portal confirms the entitlement: the normal hourly remuneration, based on basic salary, plus 25 per cent. The supplement rises to 50 per cent where overtime is worked between 10 pm and 4 am, except for employees who work on a shift basis. Rest-day working attracts a substitute rest day or the normal remuneration plus 50 per cent.
- Fix the basic wage. Overtime is calculated on basic salary, not on housing, transport or other allowances. Use the basic wage stated in the contract and the MOHRE system.
- Derive an hourly rate. A common method divides the monthly basic wage by 30 to find the daily wage and then by the normal daily hours. Use one documented method consistently across the workforce.
- Classify each hour. Separate ordinary overtime, night overtime between 10 pm and 4 am, rest-day work and public-holiday work, because each attracts a different supplement.
- Check the daily cap. Flag any day with more than two hours of overtime and record the reason. Repeated breaches suggest a staffing problem, not a payroll one.
- Record approval. Keep written or system approval for overtime, whether requested by the manager or by the employee. Undocumented hours are hard to dispute later.
- Pay through payroll. Include overtime in the wage run processed through the Wage Protection System so that the WPS file matches what the employee actually earned.
- Retain records. Keep time records with payroll records. In a claim, the employer usually has to show what hours were worked and what was paid.
Illustratively, if an employee's basic salary is AED 6,000 a month and the normal day is 8 hours, the method above gives a daily basic wage of AED 200 and an hourly rate of AED 25. Two hours of ordinary overtime would be paid at not less than AED 31.25 an hour; two hours between 10 pm and midnight at not less than AED 37.50 an hour. The figures are an example of the arithmetic, not a statement of anyone's entitlement.
See our guide to wages, payroll and WPS compliance for how overtime interacts with the wage file and deductions.
Ramadan hours, public holidays and leave
During Ramadan, MOHRE announces reduced working hours for the private sector each year. In recent years the reduction has been two hours a day, with no reduction in pay. Employers may arrange flexible or remote schedules within the daily limit. Hours worked beyond the reduced Ramadan day are generally treated as overtime, so time-recording systems should switch to the Ramadan schedule rather than carry on measuring against the normal day.
Public holidays are paid days off. If an employee is required to work on a public holiday, the employer must give a substitute rest day or pay the normal wage for that day plus at least 50 per cent of the basic wage, as the government portal's summary of leave and holidays confirms. Rest-day work and public-holiday work are separate entitlements; one does not satisfy the other.
Overtime should not be confused with annual leave. Time off in lieu is a useful tool, but the law treats it as a substitute only in the specific cases it names. Our guide to annual leave under UAE labour law explains how leave interacts with holidays and termination.
Exemptions, shift work and senior staff under overtime UAE labour law
Not every employee is treated identically. The Executive Regulations allow different daily hours for certain sectors and carve out certain categories of employees from the hours rules, which commonly include staff in genuine senior managerial or supervisory roles. Shift workers are treated differently for night overtime, because night work is part of their normal pattern.
The risk lies in over-reading these exceptions, which overtime UAE labour law treats narrowly. A job title such as "manager" or "team lead" does not by itself remove the right to overtime. What matters is the substance of the role, including real authority over staff and decisions, and whether the specific exception in the regulations is met. Employers should check the regulation text for each role they treat as exempt and record the reasoning.
Senior contracts should still define working hours honestly and set out how additional hours are compensated, for example through a higher basic salary or a defined allowance. Our executive employment practice page covers contract design for senior hires.
How the DIFC and ADGM differ
The financial free zones apply their own employment laws, so the overtime UAE labour law rules described above do not apply there. The differences are significant enough that a group with staff in both a mainland entity and a DIFC or ADGM entity should run separate policies.
| Topic | Onshore Labour Law | DIFC | ADGM |
|---|---|---|---|
| Weekly limit | 48 normal hours; overtime capped at two hours a day | Own maximum working time rules under the DIFC Employment Law | 48 hours in seven days unless the employee consents in writing |
| Overtime pay | Statutory supplements of 25% or 50% on basic wage | Contract and policy driven | No express statutory overtime rate; contract or policy may provide one |
| Ramadan | Reduced hours announced annually for all private-sector staff | Own Ramadan rule in the DIFC Employment Law | Normal hours for Muslim employees reduced by 25% with no pay cut |
| Breaks | At least one hour after five consecutive hours | Own rest break rules | At least one hour of rest and prayer breaks if the day exceeds six hours |
| Enforcement | MOHRE complaint, then the labour courts | DIFC Courts | ADGM Registration Authority fines; claims in ADGM Courts |
The ADGM position comes from the ADGM Employment Affairs Office guidance on the Employment Regulations 2024, which notes that the regulations prescribe no express overtime rate and that managerial and supervisory staff are generally not expected to receive overtime pay. Failing to reduce hours for Muslim employees during Ramadan can attract a fine in ADGM. In both centres, overtime terms belong in the contract or a written policy.
Illustrative scenario: a logistics team at peak season
The following is illustrative only, with generic parties. A Dubai mainland logistics company runs warehouse shifts during a peak period. Supervisors ask pickers to stay three hours after the normal shift several times a week, and some of those hours run past 10 pm. Payroll pays a flat hourly bonus on total salary, and the WPS file shows only the basic and allowances.
Three problems surface when an employee leaves and files a MOHRE complaint. First, the daily cap was exceeded on many days without an emergency reason. Second, the night hours should have attracted the higher supplement, unless the employees were genuine shift workers whose normal pattern included night work. Third, the payroll records do not separate overtime from other pay, so the company struggles to prove what it paid.
The fix is operational as much as legal: split hours by category in the time system, recalculate the night element, add a second shift instead of extending the day, and align the WPS file with actual pay. Where a claim is already filed, an early, documented settlement calculation usually costs less than defending inconsistent records.
Common mistakes and how to avoid them
Calculating overtime on total salary or ignoring the basic wage
The statutory supplement is calculated on the hourly equivalent of basic salary. Some employers overpay by using the full package, which is permitted but expensive. Others underpay by applying a flat hourly figure that falls below basic-wage-plus-25-per-cent for higher earners. Set the basic wage deliberately, document the hourly formula and test a sample of payslips each quarter. A low basic wage relative to total pay also reduces gratuity and leave payouts, which invites challenge in disputes.
Treating every "manager" as exempt
Exemptions under the Executive Regulations turn on the role, not the title. An employee who supervises a small team while doing operational work is unlikely to be outside the overtime rules simply because the contract calls them a manager. Review each exempt role against the regulation text, record why it qualifies, and give non-qualifying supervisors a clear overtime mechanism. When an exemption is challenged after termination, the employer bears the practical burden of proving it.
Not tracking hours for remote and hybrid staff
The Labour Law requires working hours to be specified for remote work. Without a schedule and a way of recording time, an employer has little to answer a claim that evenings and weekends were routinely worked. Set core hours, require approval for additional work, and make sure messaging tools do not create an expectation of round-the-clock availability. Our remote and flexible work guide covers the contract models.
Mixing up rest-day and public-holiday compensation
Rest-day work and public-holiday work are compensated under different provisions, and both are distinct from ordinary overtime. Payroll systems that apply one code to all extra days usually get at least one category wrong. Create separate pay codes, require the substitute-day or payment choice to be recorded, and make sure substitute days are actually taken within a reasonable period rather than accumulating indefinitely.
Forgetting Ramadan and summer schedules
Reduced Ramadan hours and the summer midday break are announced each year and apply to every private-sector employer they cover. Failing to adjust rosters is both a compliance breach and a source of overtime claims, because hours beyond the reduced day may count as overtime. Diarise both periods, update the time system and brief line managers before they start.
Most overtime disputes are won or lost on records, not on legal argument. A time system that separates normal, overtime, night, rest-day and holiday hours, linked to a payroll that pays each at the right rate through WPS, removes most of the risk before a claim is ever filed.
Cross-border teams and secondees
Groups headquartered in the UK, Singapore, India or Bangladesh often apply a global working-time policy to UAE staff. That works only if the policy meets the federal minimums. A UK-style opt-out from a weekly limit, for instance, does not displace the onshore two-hour daily overtime cap or the statutory supplements. Conversely, an employee seconded to a DIFC or ADGM entity is governed by that centre's rules, not the federal ones.
Remote employees working from abroad for a UAE employer raise separate questions about local working-time law in the country where they sit. Our cross-border workforce planning team helps groups map which rules apply where.
Overtime UAE labour law checklist for employers
- State normal hours, rest days and the overtime mechanism in every contract and in your employment policies.
- Calculate overtime on basic wage with a documented hourly formula.
- Apply the higher supplement for night and rest-day work, and track public holidays separately.
- Monitor the two-hour daily cap and record any emergency exceptions.
- Switch rosters for Ramadan and the summer midday break as soon as each year's announcement is made.
- Review every role treated as exempt against the Executive Regulations.
- Run separate policies for DIFC and ADGM entities.
- Reconcile time records, payroll and the WPS file every month.
TRW & Co advises employers on working-time policies, payroll audits and overtime disputes, alongside our working time and leave practice. Where representation before UAE courts is needed, we work alongside locally licensed advocates. To discuss your position, contact our Dubai team at info@trw.co or +971 58 942 1012.
Frequently asked questions
01How is overtime calculated under UAE labour law?
Overtime is based on the hourly equivalent of the employee's basic salary, not the total package. For ordinary overtime the employee receives that hourly rate plus at least 25 per cent. Overtime between 10 pm and 4 am attracts at least 50 per cent, except for shift workers. A common method divides the monthly basic wage by 30 and then by normal daily hours to find the hourly rate. Employers should document the method they use and apply it consistently, and pay overtime through the WPS payroll.
02What is the maximum overtime allowed per day in the UAE?
Under the federal Labour Law, overtime must not exceed two hours in a single day. Longer hours are only defensible in genuine emergencies, such as preventing a serious accident or dealing with its consequences, and the law also limits total hours over a longer reference period. Regularly extending the working day beyond the cap is a compliance breach even if the extra hours are paid, so employers facing sustained demand should add shifts or staff instead.
03Are working hours reduced during Ramadan for non-Muslims?
On the mainland and in most free zones, MOHRE announces reduced private-sector working hours for Ramadan each year, and the reduction applies across the workforce rather than only to Muslim employees. In recent years it has been two hours a day, with no cut in pay. The ADGM is different: its regulations reduce normal hours by 25 per cent for Muslim employees, and employers may choose to extend this to others. DIFC employers should follow the DIFC Employment Law.
04Do I get paid extra for working on my day off in the UAE?
Yes. If you are required to work on your weekly rest day, your employer must give you a substitute rest day or pay your normal wage for the hours plus at least 50 per cent, calculated on basic salary. Working on an official public holiday is a separate entitlement: a substitute day or the day's wage plus at least 50 per cent of basic wage. Ask for the choice to be recorded in writing so it is clear later.
05Are managers entitled to overtime in the UAE?
Not always. The Executive Regulations carve certain categories out of the hours rules, which commonly include staff in genuine senior managerial or supervisory roles. But a job title is not enough. What matters is whether the role meets the specific exception, typically real authority over staff and decisions. Supervisors who mainly do operational work are often still entitled to overtime. Employers should review each exempt role and record why it qualifies.
06Do UAE overtime rules apply in the DIFC and ADGM?
No. The DIFC and ADGM have their own employment laws. ADGM's Employment Regulations 2024 cap working time at 48 hours in seven days unless the employee consents in writing and do not prescribe a statutory overtime rate, leaving it to the contract or policy. The DIFC Employment Law also sets its own working-time rules. Employers in those centres should set out overtime terms clearly in contracts and policies.
Sources and official materials
- Federal Decree-Law No. 33 of 2021 Regulating Labour Relations — Working hours, overtime, rest days and holidays
- Working hours and overtime (UAE government portal) — Official summary of Article 17 and overtime pay
- Types of leave in the private sector (UAE government portal) — Rest days and work on public holidays
- Ministry of Human Resources and Emiratisation — Ramadan hours announcements, inspections and complaints
- ADGM Employment Affairs Office: Guidance on the Employment Regulations 2024 — ADGM working hours, Ramadan and overtime
General information only, current as at 27 October 2026. It is not legal advice and does not create a lawyer–client relationship. UAE law differs between the onshore jurisdiction, the DIFC, ADGM and the free zones, and changes frequently; check current official sources and take advice on the facts of your matter.
