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UAE Federal Decree-Law No. 33 of 2021, Article 65

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UAE Overtime Rules — Employer Guide

UAE Federal Decree-Law No. 33 of 2021, Article 65. Overtime rates, working hours limits, and payroll treatment under UAE labour law for SMEs.

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Normal working hours are eight per day or 48 per week unless role exemptions apply. Overtime beyond normal hours must be compensated at prescribed rates — typically basic salary plus 25% for daytime overtime and higher for rest days and public holidays.

· by ArcHR Compliance Team

By Swajan

What are UAE overtime rates for employers?

Normal working hours are eight per day or 48 per week unless role exemptions apply. Overtime beyond normal hours must be compensated at prescribed rates — typically basic salary plus 25% for daytime overtime and higher for rest days and public holidays.

How must UAE employers record and pay overtime?

Record overtime approvals before payroll. Include overtime in WPS SIF when paid. Do not substitute overtime with time off unless policy and law permit for the employee category.

What are common UAE compliance mistakes?

SMEs often miscalculate entitlements by using calendar days instead of service years, omitting pro-rata for partial years, or failing to document policy exceptions. Keep written policies, approval workflows, and payslip records aligned with MOHRE contract data.

How does ArcHR help UAE employers?

ArcHR encodes UAE labour rules into leave balances, payroll, attendance, and document expiry workflows — with employee self-service so people see entitlements and HR sees audit trails.

Frequently asked questions

What is the UAE overtime rate?

Article 65 sets premium rates on basic salary — often 125% for standard overtime.

Must overtime be pre-approved?

Best practice and many policies require manager approval before work.

How does ArcHR calculate overtime?

Attendance-linked overtime rules export to payroll.

Are public holidays treated differently?

Work on public holidays may attract higher premium rates under Article 65.

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