UAE Gratuity Calculator for Domestic Helpers

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Gratuity for housekeepers The Ministry of Human Resources and Emiratization has officially proclaimed the United Arab Emirates. Domestic workers have the right to paid wages, clinical assurance, 12-hour rest each day, one day of paid rest each week, 30-day clinical leave each year, a ticket to get there and return home at regular intervals, and other benefits, according to the Domestic Workers Law.

When the contract between the domestic worker and the employer expires, the domestic worker is entitled to receive end-of-service or gratuity compensation. In most cases, gratuity is the sum of money provided to a domestic worker (counting domestic workers) whose work arrangement has come to an end.

This post will talk about how gratuity pay for domestic workers in the UAE is determined. 

UAE Gratuity Calculator of Domestic Workers

Domestic workers provide a variety of services to individuals in their homes, including cleaning, family assistance, cooking, dressing, pressing, and caring for children and the elderly, among other things.

Aside from homes, these may also include various occupations such as family drivers, security guards, private medical caretakers, sitters, family ranchers, and other similar employment.

Formula for Calculating Domestic Worker Gratuity in UAE

Gratuity = (Basic Salary x 21 days x Years of Service) / 26

Where: Basic Salary = Monthly salary of domestic helper

Years of Service = Number of years the domestic helper has worked for the employer

What Law Says on Domestic Workers’ Gratuity Pay?

Article 26 of the UAE constitution pertains to domestic employees, and it states that gratuity pay for domestic workers is decided based on a 14-day compensation for each time of service. Any unpaid days off from work will also be factored into the calculation.

According to the law, a worker must complete one year of service or longer in order to be eligible for gratuity compensation at the end of the contract. “The computation of end-of-service remuneration will involve unpaid days of absence from work.”.

The report said, “The remuneration will be established based on 14-day compensation for every year of services and gets due upon the end of the agreement.” “With the renewal of the agreement, the wage estimation resumes.”.

How to Calculate Gratuity Pay of Domestic Workers

Being a domestic helper in the UAE, you must know about your gratuity pay. If you don’t know how to calculate this, follow the below method to calculate your gratuity pay.

  1. To begin, go to the Ministry of Human Resources and Emiratization’s “domestic Workers Calculator” (MOHRE).
  2. It will prompt you to input the start and end dates of your contract.
  3. Fill in the amount of net compensation you receive from your boss, as well as the essential compensation outlined in the work contract you signed.
  4. Now you must choose one of the following reasons for leaving: (a) the agreement was completed; (b) the worker resigned or was dismissed during the probationary period; (c) the worker resigned for unknown reasons; (d) the worker quit because the Employer terminated the agreement; and (e) the worker terminated the agreement.
  5. Assume you have any outstanding end-of-week remittances. In that scenario, you must provide the number of days, months, or years required as a component of the calculation for yearly leave pay, injury or handicap dues, or express period earnings (for example, serving on a public occasion).
  6. With the “All out Allowances” tab selected, a pop-up window will open. To avoid any future concerns with your employer, take a screen grab or print the page for your records.

Possibility of Domestic Worker Breach of Contract

According to the law, if a domestic worker breaches the contract, resigns, or fails to complete the contract without justification, he or she forfeits the right to gratuity compensation.

According to Article 27 of the Domestic Workers Law, an employee shall be denied the pay of the termination of service if the agreement is terminated because of unlawful termination of employment or if an employee is acting to terminate the agreement without a justifiable reason.

Article 28 further states that if a helper is apprehended, detained, or suspected of a crime, he or she is not entitled to any remuneration for the time spent in custody.

Meanwhile, if the worker finds new employment before the conclusion of the agreement, the Employer is not obligated to cover the costs of returning the person to his or her home country.

Possibility of Employer Breaches Contract

In rare circumstances, the Employer terminates the worker’s contract for no apparent cause. In this instance, the employer is required by law to provide the worker with a return permit so that he or she can return to his or her native country.

In addition, the Employer will provide recompense equal to a month’s pay for the domestic worker, as well as any extra compensation determined by the state.

Gratuity for housemaids in the UAE is calculated based on the length of service.
The gratuity amount is calculated at the rate of 21 days wages for each completed year of service.
For instance, if a housemaid has worked for a period of 4 years, the gratuity amount will be 4 x 21 = 84 days wages.

How is domestic helper end of service calculated in UAE?

In the UAE, a domestic helper’s end of service (EOS) benefit is calculated based on the length of their service.

According to the UAE Labour Law, a domestic helper is entitled to one month’s salary for each year of service, up to a maximum of 12 months. If the helper has worked for more than five years, they are then entitled to an additional month’s salary for each additional year of service.

The salary used to calculate the end of service benefit should be the last salary that the helper was paid before their employment ended.

Do housemaids get gratuity in UAE?

Yes, housemaids in the UAE are entitled to gratuity, but the amount is not set and is typically at the discretion of the employer.

MOHRE gratuity calculator formula in UAE

The MOHRE gratuity calculator formula is used to calculate the gratuity benefits of an employee in the United Arab Emirates (UAE). It is based on the number of years of service and the employee’s last basic salary. The formula is:

Gratuity = (21 days of basic salary) × (number of years of service)

Where basic salary is the employee’s last basic salary.

How to calculate gratuity in UAE for unlimited contract?

The UAE Labour Law does not specify the exact calculation for gratuity for workers with an unlimited contract.

Generally, the gratuity is calculated by multiplying the basic salary by the number of years of service. For example, if the basic salary is AED 10,000 and the employee has worked for 5 years, then the gratuity amount will be AED 50,000 (10,000 x 5).

However, employers may choose to use a different calculation that takes into account the employee’s other benefits and allowances. In such cases, the employer must ensure that the gratuity amount is in line with the UAE Labour Law.

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