A late shipment. A month-end close. A project that runs past midnight. Extra hours happen in every business. What matters is how they are recorded and paid.
Definition: Overtime is time worked beyond an employee's normal working hours. In most GCC countries it must be paid at a higher rate than normal pay. In the UAE, normal hours are capped at 8 a day and 48 a week, and overtime is paid at the basic hourly wage plus at least 25 percent, or 50 percent for night hours.
How is overtime paid in the UAE?
- Normal hours: up to 8 a day or 48 a week.
- Overtime: the basic hourly wage plus at least 25 percent.
- Night overtime between 10pm and 4am: plus at least 50 percent.
- Work on a rest day: a substitute day off, or pay plus at least 50 percent.
- Overtime is generally limited to two hours a day.
How does Saudi Arabia compare?
Saudi labour law pays overtime at the normal hourly wage plus 50 percent of the basic wage. Other GCC states set their own premiums and limits, so multi-country organisations need a policy per country.
What should HR teams track?
- Approve overtime before it is worked.
- Record hours through a time and attendance system.
- Calculate premiums correctly in payroll.
- Watch total hours to protect health and safety.
Example: catching overtime creep
A Dubai logistics firm saw overtime costs rise every quarter. Attendance data showed most of it came from two warehouse shifts with poor rosters. Fixing the schedules cut overtime by a third without hiring.
Frequently asked questions
Do all employees get overtime pay?
Most do. Employees in senior roles with real managerial authority are generally outside the working hours rules.
Can overtime be compulsory?
The organisation can require overtime in certain situations, within legal limits and with the correct pay.
Is overtime included in gratuity?
No. UAE gratuity is calculated on the basic wage only.
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Last updated: November 2026 | Reviewed by Tuscan Consulting, Dubai
