Confused About Holiday Pay Calculation in UAE: How Do You Compute Friday Overtime?

I am very confused about the computation of holiday pay. I have guidelines that state it should be paid at 250% of the gross hourly rate. Likewise, 150% for Friday. If the salary is 2000 AED fixed monthly rate with Friday as a paid leave, how do I compute if an employee works 5 hours on Friday?

Is this correct?

2000 / 30 / 8 * 1.50 * 5hrs = 62.45 (Friday OT) + 2000 = 2062.45

But others computed it as follows:

2000 / 30 / 8 * 0.50 * 5hrs = 20 (Friday OT) + 2000 = 2020.00

Because the 100% on Friday is already included in the 2000, as well as in holiday computation.

Your calculation itself indicates that your second calculation is incorrect. Based on the information provided, the hourly wage is Rs. 8, and for 5 hours, it will amount to Rs. 40. Adding 150% to this amount would make it approximately Rs. 60.

Regards,
Rajendra

According to the UAE Labour Laws:

- The normal hours will be calculated as 1.25.
- Friday hours will be calculated as 1.50.
- Public Holidays will be calculated as 2.50.

Therefore, the calculation for 5 hours on Friday would be as follows:

2000/30/8 * 5 Hrs * 1.50 = 62.45 (Friday OT) + 2000 = 63.00 + 2000 = 2063/- AED

Best regards,
Mahesh Patil

Computation of Hourly or Daily Rates in India

The computation of hourly or daily rates in India is done by dividing the salary by 26 days to account for weekly offs. This is as per Supreme Court guidelines.

Comparison with UAE System

Is there a similar system in the UAE?