Hiring a full-time nanny or housemaid in Dubai or Abu Dhabi can transform your family life, bringing trusted support and peace of mind. But what happens when your nanny’s service comes to an end? Understanding how to calculate end of service benefits (gratuity) for your nanny in the UAE is not only important for legal compliance but also for maintaining a fair, respectful relationship.
What Is End of Service for Nannies?
End of service gratuity is a lump sum payment you must provide to your nanny or housemaid at the conclusion of their contract, whether it’s because of resignation, contract completion, or termination. This payment is required by UAE Labor Law and Tadbeer standards, ensuring domestic workers receive their rightful benefits.
Who Is Eligible?
All nannies and domestic helpers in the UAE who have completed at least one year of continuous service are entitled to end of service gratuity.
Step-by-Step: How to Calculate End of Service Gratuity
1. Find the Basic Monthly Salary
Only the basic salary (excluding allowances like food or transport) is used in the calculation.
2. Determine the Years of Service
Count the total completed years your nanny has worked for you (rounded down to the last full year).
3. Apply the UAE Domestic Worker Law Formula:
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For the first 5 years:
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14 days’ basic salary for each year of service.
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For each additional year after 5 years:
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30 days’ basic salary for every extra year.
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Example:
If your nanny’s basic salary is AED 2,000/month and she worked for 3 years:
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Annual benefit: (AED 2,000 ÷ 30) × 14 = AED 933.33 per year
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Total: AED 933.33 × 3 = AED 2,799.99
If worked for 6 years:
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5 years at 14 days/year: 5 × AED 933.33 = AED 4,666.65
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1 extra year at 30 days/year: (AED 2,000 ÷ 30) × 30 = AED 2,000
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Total: AED 4,666.65 + AED 2,000 = AED 6,666.65
Other Key Points
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Less than 1 year’s service: No gratuity is due.
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Unpaid leave: Periods of unpaid leave are not included in the calculation.
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Contract termination for misconduct: If a nanny is terminated for gross misconduct, gratuity may not be payable (check legal advice).
Why It Matters
Calculating and paying end of service benefits correctly:
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Shows respect and appreciation for your nanny’s work.
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Fulfills UAE legal and Tadbeer requirements.
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Enhances your reputation as a fair, ethical employer.
Need Help?
If you’re not sure about your nanny’s entitlements, the team at Excellence Center Tadbeer can guide you through every step—whether you’re hiring, renewing, or ending a contract. We offer transparent, legal support for all aspects of domestic worker management in Dubai and Abu Dhabi.
Frequently Asked Questions
Q: What if my nanny resigns before completing a year?
A: No end of service Gratuity is required for less than 1 year’s service.
Q: Can I include food/transport allowance in the calculation?
A: No, only the basic monthly salary is used.
Q: How soon should I pay the gratuity?
A: Payment must be made at the end of the last working day or as soon as the contract is completed.
For more advice on nannies, maids, and Tadbeer domestic worker regulations in the UAE, contact Excellence Center Tadbeer or visit excellencecenter.ae!
