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How to calculate gratuity for Domestic workers in United Arab Emirates (UAE) as per MoHRE 2024
Before discussing the gratuity for domestic workers in UAE first have a look the professions that falls in
Domestic Workers category as per UAE federal law no 10 of 2017.
These Professions are:
- Babysitter / Nanny
- Housemaid
- Farm worker
- Sailor / Boatman
- Gardener
- Guard
- Personal trainer/coach
- Household Shepherd
- Personal / Private tutor
- Stableman / Groom
- Personal / Private Nurse
- Falcon care taker
- Personal Assistant
- Physical labor worker
- Private Agriculture Engineer
- Housekeeper
- Personal / Family Driver
- Cook
What the UAE federal law no 10 of 2017 say about the Domestic worker gratuity in UAE
Article 26 : UAE Federal Law no 10 of 2017
The worker having spent one year or more in continuous service shall be entitled to an end of service gratuity upon the termination of his service. The days of absence from work without pay shall not be included in the calculation of the period of service, and the gratuity shall be calculated on the basis of the wage due for fourteen days per year. The gratuity shall be paid to the worker upon the termination of the employment contract. The gratuity shall be recalculated upon the renewal of the contract.
The worker shall be entitled to a gratuity for the served fraction of a year, provided that he completes one year of continuous service.
Ministry of Human Resources and Emiratisation has officially announced gratuity for Domestic workers in UAE.The worker who has completed at least one year of his work contract is eligible for gratuity. The compensation is based on 14 days of salary per year and due upon the termination of contract.
Article 27 : UAE Federal Law no 10 of 2017
The worker shall be deprived form his end-of-service gratuity if he leaves his work without a legal cause or if he terminates the employment contract without a legal cause.
There are two conditions where the contract can be terminated:
- Domestic worker resign before the end of the contract.
- Employer terminates the domestic worker before the end of the contract.
Domestic worker resigns before the contract expiry date
Every worker must keep this law in mind that if you resign before the end of the contract you must compensate your Employer. As per the MoHRE the worker who resigns before the end of the contract must pay equivalent to one month Salary / Wages to his Employer. For example if your salary is AED 2500/- month you must pay AED 2500 to your Employer.
Employer terminate the Domestic worker
As per the UAE Domestic worker law if the Employer terminates you before the end of the contract he must pay one month extra salary to his worker as compensation along with his/her current payable salary and gratuity.
For example if your salary is AED 2500 per month he must pay you this AED 2500 extra with your all till date salary and gratuity.
Domestic Worker who completed the contract
The domestic workers who have completed their employment contract with their sponsor/employer and don't want to renew the contract for some reason they are eligible for the gratuity or other service end benefits.
Gratuity calculator for domestic workers in UAE
The Ministry of Human Recourses and Emiratisation provide a very easy to use calculator which can be used to calculate the gratuity amount by filling very few information about your contract.
These are steps below to calculate the gratuity:
Open Domestic worker or housemaid gratuity calculator from MoHRE is in the last step.
Select your Start and End date of your work contract
Write your net salary and basic salary (written on your
contract) in appropriate box.
Select the reason of leaving from the work.
- a) Resigned and dismissed in the probation period.
- b) Contract ended
- c) Worker resigned for no reason
- d) Worker resigned because the employer breaches the contract
- e) Worker dismissed for no reason
- f) Worker dismissed for breaching the contract
Enter the other detail by clicking on the button
Select unpaid allowances of annual leave salary, weekend allowance (if you worked on weekend) any work enquiry etc.
See the amount displayed below
After filling the required spaces now you can see your net payable gratuity and other allowances (if applicable) in red color text.
- Domestic worker or housemaid gratuity calculator from MoHRE
Gratuity Calculator Tool for Domestic Worker / Housemaid
Let's understand how we calculate the domestic worker or house maid gratuity in UAE as per MoHRE:
Example:
If you completed your contract with your employer:
Net Salary / Month (salary in hand) = AED 2000
Basic Salary / Month (salary on contract) = AED 1500
Gratuity will be calculated only on basic salary
Per day salary = 1500 / 30 = AED 50
Gratuity per year = AED 50 x 14 days (As per Mohre rule)
Gratuity per year = AED 700
Gratuity for 2 years (Depend on your work period) = AED 700 x 2 years
Total Gratuity for you = AED 1400
Who can not get domestic worker gratuity in UAE?
Article 28 : UAE Federal Law no 10 of 2017
1- If the worker is preventively detained, his comprehensive wage shall be suspended during such detention.
2- If a criminal action is filed against the worker based on a complaint by the employer and the investigations thereon are closed or a final acquittal judgement is delivered, the worker shall receive his comprehensive wage for the detention period. If he is convicted, he shall be deprived from such wage.
3- If a criminal action is filed against the worker by a person other than the employer and the worker is convicted, his suspended comprehensive wage shall not be cashed to him. If investigations are closed or the worker is acquitted by a court judgement, the complainer shall pay the suspended wage.
Important Note: As per the article 28 if the domestic worker arrested or detained under any of criminal activity charges, he/she will not be entitled any of the wages for the period of the detention.
