1. What is the Overtime Calculation?

The overtime calculation in UAE follows the standard formula that calculates overtime pay based on regular hourly rate multiplied by 1.25 for overtime hours worked.

2. How Does the Calculator Work?

The calculator uses the overtime formula:

Where:

• \( OT \) — Overtime pay (dirhams)
• \( OH \) — Overtime hours worked
• \( R \) — Regular hourly rate (dirhams/hour)
• 1.25 — Overtime multiplier factor

Explanation: The equation calculates the total overtime pay by multiplying overtime hours with the enhanced hourly rate (regular rate × 1.25).

3. Importance of Overtime Calculation

Details: Accurate overtime calculation ensures proper compensation for extra hours worked and helps maintain compliance with UAE labor laws regarding overtime payments.

4. Using the Calculator

Tips: Enter overtime hours and regular hourly rate in dirhams. Both values must be positive numbers to calculate accurate overtime compensation.

5. Frequently Asked Questions (FAQ)

Q1: What is the overtime rate in UAE?
A: According to UAE labor law, overtime is typically paid at 1.25 times the regular hourly rate for additional hours worked.

Q2: Are there different overtime rates for different days?
A: Yes, UAE labor law specifies higher rates for overtime on weekends and public holidays (typically 1.5 times regular rate).

Q3: Is there a maximum limit for overtime hours?
A: Yes, UAE labor law limits overtime to 2 hours per day unless exceptional circumstances require more, which cannot exceed 144 hours per 3 weeks.

Q4: How is overtime calculated for shift workers?
A: For shift workers, overtime is calculated based on the same formula, but the regular hourly rate should reflect their base pay rate.

Q5: Are all employees entitled to overtime pay?
A: Most employees in UAE are entitled to overtime pay, though some senior management positions may be exempt as per their employment contracts.