Understanding Overtime Pay in UAE: Is This the Right Calculation Method?

gafoor_shah
I have a query regarding OT calculation as per UAE Labor Law. Is the OT calculated as per the following formula?

Normal Overtime Calculation

- Basic Salary / 30 (days) * 1.25
- OR Gross Salary / 30 (days) * 1.25

Regards
sulthan
Overtime (OT) is based on the basic salary only. As per UAE law, the maximum OT time is 2 hours, and it may be extended for 1 hour depending on the industry and workload.

For example, if the basic salary is 1500 AED:
1500 / 30 / 8 (per day work hours) * 2
Then you will calculate your OT time, which is 2 hours.

I hope this information helps you.
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