Thanks for the quick response. Actually i did go thru that link on OT. Based on that my question was:
- Why is OT computed on "Basic wage", when UAE law says "Wage".
Quoting from the link you send, law says for : Computation of Normal Overtime:
"If the nature of the job requires overtime, the employees shall be paid overtime and the payment shall be equivalent to the wage paid for the ordinary working hours plus and increase of not less than 25% of his wage for the overtime period"
So here the law is NOT mentioning BASIC Wage, only Wage. And Wage means Basic + Allowances (full remuneration).
Actually I also referred JAFZA rules and there it particularly says "basic wage" for OT computation, but for a non-JAFZA company what is the foundation of calculating OT on "basic wage" when we are governed by UAE Law.
Sorry to bother with specifics... appreciate your advisory asap.