As Ramadan 2026 approaches - expected to begin on February 18 or 19 - HR departments in Saudi Arabia and the United Arab Emirates (UAE) are preparing for significant shifts. This 2026 Ramadan is unique because the holy month coincides with major digital enforcement deadlines, including Phase 2 of the Saudi Unified Contract and stricter monitoring of the UAE Wage Protection System (WPS).
This guide answers the most common HR questions, so you can stay compliant and keep your workforce supported:
- Standard and reduced working hour limits for KSA and the UAE.
- Industry-specific 9-hour and 7-hour workday exceptions.
- Overtime calculation rates and new compensatory leave options.
- Entitlements for social, paternity, and maternity leave milestones.
- Mandatory 2026 digital contract deadlines and wage enforcement rules.
- Impact of 2026 minimum wage updates and Friday school dismissals.
Working Hours, Schools, and Commuting
During Ramadan, working hours are legally reduced in both the UAE and Saudi Arabia. In Ramadan 2026, these reduced working hours apply to all employees in the UAE and to Muslim employees in Saudi Arabia. HR teams must ensure attendance, payroll, and overtime calculations reflect these official Ramadan working hours to remain compliant.
What are the official working hours during Ramadan 2026 in the UAE and Saudi Arabia?
Saudi Arabia: Under Article 98, Ramadan working hours for Muslim employees are limited to 6 hours per day or 36 hours per week. UAE: In the UAE, working hours during Ramadan are reduced by 2 hours for all employees, regardless of religion or fasting status, effectively capping the standard workday at 6-7 hours (depending on normal company schedule).
Pro-Tip for Financial Free Zones: While the 2-hour reduction is universal for all faiths onshore, it is religion-specific in financial hubs. In DIFC, reduced hours apply only to Muslim employees; in ADGM, they apply specifically to fasting Muslim employees. Non-fasting staff in these zones typically maintain standard hours.
Which industries are allowed to increase daily working hours to 9 hours or decrease them to 7 hours?
Saudi Arabia: Article 99 and Ministerial Decision No. 2836 allow 9-hour workdays for non-continuous sectors like hotels, hospitals, restaurants, and gas stations. Hours are reduced to 7 per day for hazardous industries like construction and chemical works.
UAE: Commercial establishments, hotels, and restaurants may increase standard hours to 9 per day, but the 2-hour Ramadan reduction still applies to all employees in these sectors
How are rest and prayer breaks regulated during the Ramadan workday?
Saudi Arabia: Under Articles 101 and 102, employees must not work more than 5 consecutive hours without a 30-minute break, which is not counted as actual working hours.
UAE: Employees are entitled to one or more breaks totaling at least 1 hour after every 5 consecutive hours of work, and these breaks are excluded from working hour calculations.
What are the rules for rotation or shift-based work?
Saudi Arabia: Article 100 permits rotation-based firms to increase hours to 8 per day or 40 per week with Ministry approval, provided the average over three weeks does not exceed 8 hours per day or 48 hours per week.
UAE: Total working hours in shift-based models must not exceed 144 hours every 3 weeks. While night overtime (10:00 PM – 4:00 AM) generally attracts 150% pay, Article 19 specifically excludes shift-based workers from this premium if their normal schedule falls during these hours.
Once working hours are clear, the next challenge is pay and leave entitlements - especially overtime during Ramadan. Let’s see the rules:
Overtime, Pay, and Minimum Wage
What are the rules for calculating overtime pay during Ramadan?
Saudi Arabia: Under Article 107, overtime is paid at the hourly wage plus 50% of the basic wage, and all work on public holidays (including Eid Al Fitr) is treated as overtime.
UAE: Daytime overtime is paid at 125% of the regular wage. Night-time overtime (between 10:00 PM and 4:00 AM, or 9:00 PM in DMCC) is paid at 150%, provided the employee is not working on a shift basis.
Can an employer offer "Time Off" instead of cash for overtime worked?
Saudi Arabia: The 2025 amendments to Article 107 allow employers to offer compensatory paid leave days instead of cash, provided the employee gives explicit written consent.
UAE: Employees working on a rest day typically receive a substitute rest day plus 50% extra pay, or 150% pay if no substitute day is provided.
Beyond working hours and overtime, Ramadan compliance also extends to statutory leave rights, many of which continue unchanged during the holy month and must be reflected accurately in payroll and attendance systems.
Leave Entitlements & Milestones
What are the paid social leave entitlements for marriage, bereavement, and paternity?
Saudi Arabia: Article 113 provides 5 days for marriage or the death of a spouse/parent/child and 3 days for the death of a sibling. Paternity leave is 3 days of fully paid leave, to be taken within 7 days of the child’s birth.
UAE: Employees receive 5 days for the death of a spouse, 3 days for other immediate relatives, and 5 working days for parental leave for both parents.
What are the statutory maternity leave rights and breastfeeding breaks?
Saudi Arabia: Article 151 grants 12 weeks of fully paid maternity leave, plus an additional month of full pay if the child has special needs or a disability.
UAE: Maternity leave is 60 days (45 days full pay and 15 days half pay) and includes two daily breastfeeding breaks of 30 minutes each for six months.
What are the entitlements for study leave for employees in 2026?
Saudi Arabia: Under Article 115, employees are entitled to fully paid leave to sit for examinations of an unrepeated year. The duration is based on the actual exam days. If the year is being repeated, the employee is still entitled to leave, but it is unpaid.
UAE: Employees with at least 2 years of service are entitled to 10 working days of paid study leave per year for exams at accredited institutions.
Alongside Ramadan-specific rules, HR teams must also track 2026 compliance milestones that affect contracts, wage payments, and audit trails.
Digital Compliance & 2026 Deadlines
What are the mandatory 2026 digital compliance phases and deadlines?
Saudi Arabia: Phase 2 of the Unified Employment Contract begins on March 6, 2026, for renewed fixed-term contracts, with Phase 3 starting August 6, 2026, for indefinite contracts.
UAE: All private-sector employees must be on MOHRE-registered fixed-term contracts, and all salaries must be paid via the Wage Protection System (WPS).
What are the financial penalties for labor law and Wage Protection System (WPS) violations?
Saudi Arabia: Penalties include SAR 1,000 for maternity leave non-compliance and up to SAR 250,000 for unauthorized recruitment services.
UAE: Fines for labor law breaches range from AED 100,000 to AED 1 million, and WPS triggers automatic work permit suspensions 17 days after a salary is due.
How do 2026 minimum wage updates and Friday school dismissals affect HR operations?
Saudi Arabia: Effective January 19, 2026, the minimum wage for Saudi nationals in Marketing and Sales professions is set at SAR 5,500 as part of the 60% Saudization mandate. This threshold must be met for these roles to count toward localization targets in the Ramadan payroll.
UAE: A minimum wage of AED 6,000 for Emiratis is enforced by July 1, 2026. Additionally, all schools in Dubai must dismiss students by 11:30 AM on Fridays starting January 9, 2026, which will impact Ramadan attendance schedules.
Conclusion
The 2026 Ramadan season marks a shift toward total digital accountability. With Saudi Arabia’s Phase 2 contract rollout on March 6 and the UAE’s mandatory 11:30 AM Friday school dismissals, HR teams must ensure their systems are calibrated to handle 6-hour triggers and new 2026 minimum wage thresholds. Automating these rules in a localized system like greytHR ensures compliance with Articles 98–151 in KSA and the Federal Decree-Law in the UAE, protecting the business from penalties while supporting the workforce during the holy month.
To stay ahead of the shifting 2026 mandates, discover how greytHR automates regional compliance and payroll.
Disclaimer: Astronomical dates are subject to change based on official moon sightings. This article is for informational purposes only and does not serve as legal advice.
