Overtime Allowance for UAE

Overtime allowance is paid to an employee for hours worked beyond regular hours on normal working days.

The employee also gets paid when they work on rest days or holidays. The overtime rate is a percentage of the salary that depends on the grade and is different for hours beyond regular (on normal working days) and hours on rest days.

The following is the input needed to perform the calculation:

• Attach a Gratuity Salary formula, in the Employer Gratuity PSU level Calculation Card. The value returned by this is the base monthly salary that is converted to a hourly salary using ROUND((monthly_salary * 12)/(365 * 8),2).
• Create range values for the seeded calculation value definition details Overtime Allowance Grade Rate for Regular Days, Overtime Allowance Grade Rate for Rest Days. In the value field of the range value UI, you must choose the grade rates that are used to get the amount for rest and normal day overtime