How to Calculate Gratuity for Domestic Workers UAE

How to Calculate Gratuity for Domestic Workers in UAE

The domestic workers are entitled to receive gratuity in UAE if they have completed minimum one year of service. That’s why, it is important to learn how to calculate gratuity for domestic workers.

According to the new amendment in UAE Labour Law, the domestic workers are now entitled for end-of-service benefits i.e. gratuity. But the calculation of gratuity for domestic workers is different from corporate/industrial workers in the UAE.

Who is a Domestic Worker in UAE?

There are some specific professions that are covered in the category of domestic work in UAE. Here I provide the list of domestic workers in UAE as under.

  • Babysitter or Nanny
  • Cook
  • Housemaid
  • Personal Driver or Family Driver
  • Farm Worker
  • Housekeeper
  • Private Sailor or Boatman
  • Gardener
  • Watchman or Security Card
  • Personal Trainer or Personal Coach
  • Household Shepherd
  • Personal Tutor or Private Tutor
  • Stableman or Groom
  • Personal Nurse or Private Nurse
  • Falcon Care Taker
  • Personal Assistant
  • Physical Labour Worker
  • Private Agriculture Engineer

How to Calculate Gratuity for Domestic Workers in UAE

You can calculate gratuity for domestic workers by using the domestic worker calculator at MOHRE website @www.mohre.gov.ae.

The Ministry of Human Resources & Emiratisation provides all domestic worker services including an online gratuity calculator that is free to use for all workers & employers.

#Step:1 Go to MOHRE website portal

Calculate Gratuity for Domestic Workers

First of all, you should open a web browser and go to MOHRE official website @www.mohre.gov.ae.

#Step:2 Find & Select Domestic Workers Calculator

Calculate Gratuity for Domestic Workers

The Domestic Workers Calculator is available under Services section on MOHRE website. So, you should select Services section and click on Domestic Workers Calculator to open the online calculator.

#Step:3 Choose Service Start Date and End Date

Calculate Gratuity for Domestic Workers

As the domestic workers gratuity calculator appears on screen, you need to provide required information. First, select the job/service starting date and then enter the job/service ending date in MM/DD/YYYY format.

#Step:4 Provide Salary Details in AED

Calculate Gratuity for Domestic Workers

Kindly, enter the Net Salary and Basic Salary in the empty boxes given on the page. please note that you must enter the salary amount in AED currency.

Step: 5 Finally, select the Reason of Leaving the job

Calculate Gratuity for Domestic Workers

The Reason of Leaving is the main factor in the domestic worker gratuity calculation process in UAE. So, you must select the reason carefully, the different reasons of leaving the job are mentioned as under;

  • Resigned or dismissed in the probation period
  • Contract ended
  • Worker resigned for no reason
  • Worker resigned because the employer breached the contract
  • Worker dismissed for no reason
  • Worker dismissed for breaching the contract

Select the Reason of Leaving the job as applicable to calculate gratuity for a domestic worker at MOHRE portal.

Step:6 Check the Gratuity Amount

Calculate Gratuity for Domestic Workers

After entering all information correctly, you can check the gratuity amount at the bottom. It is mentioned as “Total Allowances” where you can see the total end-of-service benefit pa

Are Domestic Workers in UAE Entitled for Gratuity?

Yes, the domestic workers in UAE are entitled for gratuity as stated in the UAE Federal Law. The Federal Law has specific provisions for entitlement of end-of-service benefits for domestic workers in the United Arab Emirates.

All domestic workers and employers should learn about gratuity entitlement rules. Here I am going to share UAE Federal Law Articles and Provisions regarding gratuity for domestic workers as under:

Article 26:

The Article 26 of the UAE Federal Law No.(15) of 2017 states that a domestic worker is entitled to receive the end-of-service benefit i.e. gratuity if s/he has completed minimum one year of continuous service.

The gratuity shall be calculated on the basis of 14 days basic salary for every completed year of service. In the calculation of service period for gratuity, the days of absence without pay shall be excluded.

The domestic worker is entitled to receive gratuity for all completed years and fraction of year(s) if s/he has completed minimum one year of service.

The gratuity shall be paid to the worker on termination or at the end of employment contract. On renewal of the employment contract, the gratuity shall be recalculated as per rules.

Domestic Worker Gratuity Formula UAE

  • Domestic Worker Gratuity = [Basic Salary/30 x 14] x No. of Completed Service Years

Domestic Worker Gratuity Calculation Process

Sameer Shaikh is a domestic worker in Sharjah with a Net Salary of AED 2500 and Basic Salary of AED 2000. Sameer has completed 2 years of service. His employment contract started on April 1, 2022 and ended on April 1, 2024.

Let us calculate gratuity of Sameer as per domestic worker gratuity calculation formula in United Arab Emirates.

Domestic Worker Gratuity = [Basic Salary/30 x 14] x No. of Completed Service Years

Sameer’s Gratuity = [2000/30 x 14] x 2 = 933.3333 x 2 = 1866.67

So, Mr Sameer Shaikh is entitled to receive gratuity of AED 1866.67 from his employer.

Article 27:

The domestic worker shall be deprived of end-of-service benefit (gratuity) if s/he resigns before the end of contract without a valid or legal cause. Moreover, the worker has to pay one month’s salary to the employer.

On the other hand, the worker is entitled to receive gratuity if the employer dismisses/terminates the worker before the end of contract without a valid/legal cause.

So, let us understand how to calculate gratuity in both the circumstances.

[A] Domestic Worker Resign Before Contract Expiry

If the worker resigns before the contract expiry date without a legal cause, s/he is deprived of the gratuity benefit. So, s/he won’t get gratuity and the worker shall be liable to pay one month’s full salary to the employer.

For Example: If you are a domestic worker and your salary is AED 3000 per month then you have to pay AED 3000 to your employer if you resign before contract expiry without a legal cause.

[B] Employer Terminate Domestic Worker Before Contract Expiry

In case the employer terminates the worker before the contract expiry date without a legal cause, the worker is entitled to receive gratuity, pending salary till the last day of work and extra one month’s salary.

[So, the employer shall be liable to pay all pending salary plus gratuity to the worker and the employer must pay extra one month’s salary.]

For Example: Your salary is AED 3000 per month. If your employer has terminated you before contract expiry without a valid reason then your employer must pay you all your pending salary plus gratuity and extra AED 3000 (salary) after termination.

What If the Domestic Worker Refuses to Renew the Contract…

If the domestic worker has served during the contract period but s/he does not want to renew the contract then the worker is entitled to receive salary for entire contract period and end-of-service benefit (gratuity) as per rules.

Article 28:

The gratuity to the domestic worker shall be suspended and treated as under, if the worker is involved in an illegal activity or criminal case in the UAE.

  • If the domestic worker is arrested & detained by police or other federal authority, the wages/salaries of such a worker shall be suspended during that period.
  • If the employer has filed a criminal case against the domestic worker and the worker is acquitted in judgement after all investigations, the employer shall be liable to pay the pending salary, salary of whole suspension period and the end-of-service benefit i.e. gratuity.
  • If the employer has filed a criminal case against the domestic worker and the worker is convicted in judgement then the worker is not entitled to receive any salary or gratuity.
  • A criminal case is filed against the domestic worker by any person other than the employer; (1) If the worker is convicted in the court judgement, the worker is not entitled to receive salary of suspension period and gratuity. OR (2) If the worker is acquitted in the court judgement, the complainer shall be liable to pay the salary of suspension period. The gratuity shall be calculated & paid by the employer as per rules.

Conclusion:

The gratuity is the right of all domestic workers in the United Arab Emirates. I hope that the above guide on gratuity calculation for domestic workers in UAE has been helpful for you. To know more, you can refer the frequently asked questions and answers given below.

FAQs

Is a domestic worker entitled for gratuity in UAE?

Yes, a domestic worker is entitled for gratuity in UAE if the worker has completed minimum one year of service.

How much gratuity does a domestic worker get?

Is a domestic worker entitled for gratuity after resignation?

Can a domestic worker get gratuity after being terminated?

Is a domestic worker entitled for gratuity after being terminated for indiscipline?

Is a domestic worker with a criminal case entitled for gratuity?

Similar Posts

Leave a Reply

Your email address will not be published. Required fields are marked *