The United Arab Emirates (UAE) has provided a clarification regarding overtime compensation rules applicable during the holy month of Ramadan in 2026. This directive, stemming from an official announcement by the Ministry of Human Resources and Emiratisation (MoHRE), outlines specific payment rates for employees required to work beyond standard hours, with an emphasis on enhanced remuneration for evening shifts. The clarification serves to ensure fair compensation for the workforce during a period characterized by adjusted daily working schedules across the Emirates.

Under the updated guidelines, employees performing overtime work during Ramadan 2026 are entitled to increased hourly wages. These measures specify varying rates based on the timing of the additional work, aligning with existing provisions within the UAE Labour Law (Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations). The proactive communication of these guidelines is intended to promote transparency and compliance among both employers and employees concerning working conditions and entitlements during the annual religious observance.

The official clarification details the following compensation structures for overtime performed during Ramadan 2026:

  • Standard Overtime Compensation: Employees working additional hours beyond their reduced daily limit during Ramadan are entitled to receive a minimum of 25% above their normal hourly wage. This rate applies to overtime conducted during regular daytime working hours.
  • Evening Overtime Shifts Compensation: For overtime work that extends into evening hours, employees are to be compensated at a significantly higher rate, specifically 50% above their normal hourly wage. This enhanced payment aims to provide additional compensation for work performed during periods traditionally designated for rest and family time, which hold particular significance during Ramadan.

These provisions are consistent with the broader framework of UAE labour legislation, which mandates specific compensation for hours worked in excess of the standard contractual agreement. During Ramadan, daily working hours for most private sector employees are typically reduced by two hours, without a corresponding reduction in their basic pay. Any work performed beyond this reduced schedule is officially classified as overtime and falls under these stipulated compensation rules. The clarification by MoHRE reinforces these existing legal obligations, ensuring that companies across all sectors adhere to the prescribed rates for additional work during the sacred month.

The directive underscores the UAE government's ongoing commitment to safeguarding employee rights and maintaining equitable working conditions. Adherence to these guidelines is mandatory for all companies operating within the UAE private sector. Monitoring and enforcement are managed by the Ministry of Human Resources and Emiratisation, which requires employers to maintain accurate records of working hours and overtime payments to demonstrate full compliance with the law.

As the period leading up to Ramadan 2026 progresses, employers and employees across the UAE are expected to internalize these reaffirmed regulations. The clarification provides a clear and actionable framework for managing workforce requirements while upholding worker entitlements during a sensitive and important time of the year. Regulatory bodies are expected to continue their oversight to ensure the consistent application of these rules across the diverse economic landscape of the UAE.