Overtime pay in the United Arab Emirates 2026: premiums, limits and tax
Overtime, night work and work on Sundays and public holidays in the United Arab Emirates can earn a premium on top of your normal hourly pay, and the extra pay is taxed at your highest rate. The calculator above shows what you really keep. Below you will find the rules in brief, an example and answers to common questions.
The rules in brief
- Overtime: Overtime is paid at the hourly basic wage plus at least 25%, or plus 50% for overtime between 10 pm and 4 am (not for shift work). Work on your rest day gives another day off or the basic wage plus 50%. The hourly basic wage is the basic salary ÷ 30 ÷ daily hours. Overtime is at most 2 hours a day; normal hours are at most 8 a day and 48 a week.
Example: 8 hours of overtime a month
| Type | Rate | € / h gross (AED) | € / h net (AED) |
|---|---|---|---|
| Overtime | +25% on basic pay | 46.88 | 46.88 |
| Overtime between 10 pm and 4 am | +50% on basic pay | 56.25 | 56.25 |
| Work on your rest day | +50% on basic pay | 56.25 | 56.25 |
With a normal hourly rate of AED 72.12 (annual salary ÷ 52 ÷ weekly hours), 8 hours of overtime a month at +25% on basic pay add AED 375.00 gross, of which you keep AED 375.00 net a month. You keep 100.0% of each taxed extra unit. Over a year that comes to AED 4,500 (net · AED 4,500 gross).
Frequently asked questions
How much of my overtime pay do I keep in the United Arab Emirates?
In the example, 100.0% of each extra unit of gross pay, i.e. AED 375.00 net from 8 overtime hours a month. The share depends on your salary, because extra pay is taxed at your highest rate.
Is there a legal overtime premium in the United Arab Emirates?
The example uses +25% on basic pay for overtime. The exact rules, including night, Sunday and holiday premiums, are listed above.
How many overtime hours are allowed?
The calculator uses this limit: 2 h / day. See the rules above for averaging periods and exceptions.
Are these amounts exact?
They are estimates under the 2026 rules. Your contract or a collective agreement can set higher premiums or different limits.
Rules and official sources: see “Rules applied (2026)” above. Last checked: October 2026. The amounts are estimates for information, not financial or legal advice.