Gratuity Calculator UAE for Domestic Workers
Gratuity is a form of end-of-service payment that domestic workers in the UAE are entitled to after completing a certain period of work with the same employer. It’s a way of saying thank you for their service and dedication over the years.
Many people don’t know this, but domestic workers; like housemaids, drivers, cleaners, and nannies, have rights just like any other employee. One of those rights is gratuity pay when they leave their job, as long as they’ve worked for at least one year.
The gratuity amount is usually based on the worker’s basic monthly salary and the total number of years they’ve worked. The longer the service, the higher the gratuity.
To make this easier, tools like the Domestic Worker Gratuity Calculator UAE are available online. They help housemaids and other domestic workers figure out how much gratuity they should receive quickly and accurately.
It’s important for both workers and employers to know this right so that every worker gets their fair and deserved payment when their job ends.
Legal Framework and Governing Laws
The gratuity for domestic workers is primarily governed by Federal Decree Law No. 9 of 2022 Concerning Domestic Workers, which came into effect on December 15, 2022, replacing the previous Federal Law No. 10 of 2017. This law, under Article 19, mandates that employers must pay the worker’s compensation within 10 days from the contract expiry date, provided there is no breach of contract by the worker.
The Ministry of Human Resources and Emiratisation (MoHRE) plays a pivotal role in overseeing compliance, providing guidelines, and offering online tools to facilitate calculations. This legal framework ensures transparency and adherence to labor rights, aligning with the UAE’s commitment to protecting domestic workers, who are often vulnerable due to their isolated working environments.
However, eligibility can be affected by the reason for termination. For example, if a worker resigns without a valid reason or breaches the contract, such as by abandoning work, they may not be entitled to full gratuity and could, in some cases, owe compensation to the employer. This aspect is crucial for understanding potential disputes and ensuring fair treatment.
How to Calculate Gratuity for Domestic Workers in UAE?
Typically, gratuity is 14 days’ wages per year of service. For example, with a AED 2,000 monthly basic salary and 5 years service, it’s calculated as 5 × 14 × (2,000/30) = AED 4,666.90. We provide an online calculator, factoring in termination reasons and additional benefits like unused leave.
Calculation Method: Step-by-Step Guide
The standard method for calculating gratuity for domestic workers is based on 14 days’ wages per year of service, using the basic salary as the reference. To illustrate:
- Daily Wage Calculation: Divide the monthly basic salary by 30 (approximating days in a month). For example, if the basic salary is AED 2,000, the daily wage is AED 2,000 / 30 = AED 66.67.
- Annual Gratuity: Multiply the daily wage by 14 (days per year entitlement). For AED 66.67, this is AED 66.67 × 14 = AED 933.38 per year.
- Total Gratuity: Multiply the annual amount by the number of years served. For 5 years, it would be 5 × AED 933.38 = AED 4,666.90.
This method is consistent with historical data, but additional factors can modify the amount:
- Unused Annual Leave: Workers are entitled to paid leave, and unclaimed periods may add to the gratuity.
- Overtime and Weekend Work: If the worker performed duties on weekends, additional allowances may apply.
- Work Injuries: If the worker suffered injuries leading to disability, this can increase compensation.
- Reason for Termination: The calculation resumes upon contract renewal, and specific conditions like employer breach can lead to additional payments, such as one month’s net salary.”
The complexity of these factors underscores the importance of using official tools for accuracy, especially given potential variations in individual cases.
Process of Using the Domestic Worker Gratuity Calculator
Step 1: Visit gratuitycalculatoruae.ae, navigate to Services > Domestic Worker Calculator.
Step 2: Enter the employment start and end dates as per the labor contract.
Step 3: Input the basic and net salary, ensuring accuracy with contract details.
Step 4: Select the reason for leaving from options:
- Contract ended.
- Worker resigned for no reason.
- Worker resigned due to employer breach.
- Worker dismissed for no reason.
- Worker dismissed for breaching contract.
Step 5: Add details for specific periods (unpaid days/months/years), unclaimed annual leave, weekend work days, and work injury percentage (if applicable).
Step 6: View the total allowance calculated and option for print-out for records.
This tool ensures compliance with regulations and facilitates fair compensation, considering all relevant factors. However, attempts to directly access the calculator URL resulted in errors, suggesting it may be embedded within the services portal and requires navigation through the website.
Practical Examples and Case Studies
To illustrate, consider the following hypothetical cases:
Case 1: Normal Contract Completion
A domestic worker with a basic salary of AED 2,500, employed for 3 years, and the contract ends normally:
- Daily wage = AED 2,500 / 30 = AED 83.33
- Gratuity = 3 × 14 × AED 83.33 = AED 3,500.22
The calculator would confirm this, with no additional factors.
Case 2: Resignation Due to Employer Breach
The same worker resigns after 3 years due to not being given a weekly day off:
- Full gratuity: AED 3,500.22
- One month’s net salary compensation (e.g., AED 2,800)
- An air ticket to their home country
These examples show how different termination conditions can impact the final gratuity, highlighting the importance of using the calculator for accurate results.
Conclusion
Understanding and calculating gratuity for domestic workers in the UAE is vital for ensuring fair treatment and compliance with labor laws. By leveraging tools like our Domestic Worker Calculator and following Federal Decree Law No. 9 of 2022, both workers and employers can navigate end-of-service benefits seamlessly.
This article aims to empower domestic workers with the knowledge and resources to claim their rightful entitlements, while also guiding employers on their legal obligations. For the latest 2025 updates, check the website regularly.
