Dec 23, 2021 2 min read

United Arab Emirates Payroll Outsourcing Alert

The new UAE Labor Law, that comes into effective on 2 February 2022, will also impact the overtime rules for the private sector employees. These changes have been summarized below:

  1. Employees will be prohibited to work more than five consecutive hours without at least a one-hour break, and no more than two hours of overtime is allowed in a day. Shift-based employees are exempt from this rule. If shift-based employees are required to work during an off-day, they must receive a day off in lieu or an overtime wage equivalent to their regular day pay with a 50% increase. In addition, employees cannot be made to work more than 144 hours during any three-week period.
  2. When employees are required to work more hours than their standard working hours, those additional hours will be treated as overtime and the employees must be paid their regular salary (basic salary plus all the contractual allowances) and an additional overtime payment of 50% of their regular salary.
  3. If an employee is required to work at any time between 10pm and 4am, the employee must be paid their regular salary plus an overtime payment of 50% of their regular salary.
  4. If an employee is required to work during an off-day, then the employee shall be either provided a day off in lieu or paid their regular salary with an additional 50% of their regular pay as an overtime payment.
  5. An employee may not be employed more than two consecutive rest days, except for the daily workers.

Mercans’ UAE Payroll Outsourcing Solutions

While Mercans’ UAE Payroll Outsourcing alerts will allow you to stay on top the latest development in UAE’s payroll regulations, you should still get in touch with Mercans’ UAE payroll outsourcing, compliance, PEO/GEO and BPO specialists for a free consultation on setting up fully compliant payroll and HR functions. Better yet, outsource your payroll and HR activities in UAE to Mercans and our UAE payroll outsourcing experts will ensure that your employees will always be paid on time and in accordance with the UAE regulations.

Mercans Recommend

View PDF

Mercans Statutory Alert UAE Overtime
Size

792.65 KB

Most viewed posts

View all posts

Lebanon – Sickness and Maternity Contributions Set To Raise

Contributions will be raised to LBP 18,000,000 from the existing limit of LBP 5,600,000.

Sep 18, 2023 1 min read

Singapore – Central Provident Fund Ceiling Changes

Effective from 1 September 2023, the Central Provident Fund Board has amended the additional income ceiling for monthly mandatory contributions. CPF Ordinary Wage (OW) ceiling limits, the amount of OW that attract CPF contributions in a calendar m

Sep 12, 2023 1 min read

Kenya – 2023 Statutory Changes

Effective from 28 July 2023, the Kenyan Government has lifted the suspension barring the implementation of the 2023 Finance Act. The Finance Act of 2023 proposed the below changes to take effect from the 1st of July 2023: Exemption of travel allo

Aug 15, 2023 2 min read

Oman Announces New Labor Law

Effective from 25 July 2023, the Omani government through Royal Decree No. 53/2023 issued the New Labor Law which replaces the Old Labor law issued through Royal Decree No. 35/2003. Please find the previous and new law comparison in the below tabl

Aug 11, 2023 1 min read

HR Blizz Acquires an Accounting Software Award from Leading B2B Rev...

HR Blizz earned another notch on its belt when a major B2B software marketplace granted our accounting software a major award. FinancesOnline, one of the leading software directories today, confers HR Blizz with a Rising Star Award, acknowledgin

Aug 10, 2023 3 min read

New Salary capping limit for payment of Social and Health Insurance...

Effective from 1 July 2023, the Ho Chi Minh City Social Insurance authority with Notice no. 2651/TB-BHXH dated 7 Juy 2023 increased the ceiling amount of salary for payment of compulsory social insurance, occupational accident and disease insurance,

Jul 31, 2023 1 min read