MOHRE Labour Law 33/2021: Calculating Normal, Night, and Rest-Day Overtime Correctly

Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations represents the most significant overhaul of UAE employment law in decades. For manpower supply companies, strict compliance with overtime rules is not only a statutory requirement but also crucial for client contract profitability.

Article 19 specifies standard working hours at 8 hours per day or 48 hours per week. When business exigencies require workers to work beyond regular hours, overtime must be calculated according to strict statutory formulas.

Normal Overtime: For daytime hours in excess of standard shift hours, the worker is entitled to an hourly basic wage plus an addition of not less than 25% of that wage. The hourly base is calculated as: Basic Salary / (30 days × 8 hours).

Night Overtime: If overtime is performed between 10:00 PM (22:00) and 4:00 AM (04:00), the statutory addition increases to not less than 50% of the basic hourly wage (except for shift workers whose regular roster falls within this window).

Rest-Day Work: Under Article 22, every worker is entitled to at least one paid rest day per week. If required to work on this day, the employer must provide either an alternative compensatory day off or pay the normal wage plus a 50% basic wage enhancement.

AMMSC's built-in rule engine automatically calculates these premiums from approved attendance times. It replaces manual Excel formulas, helps ensure workers are paid fairly under UAE law, and captures all billable overtime on client invoices.