When it comes to employing a housemaid in the UAE, understanding Gratuity for Housemaids in UAE and end-of-service benefits is crucial. Gratuity ensures that household helpers receive a financial reward for their dedicated years of service, and both employers and housemaids should be aware of the entitlements and regulations surrounding it. In this guide, we’ll cover the essentials of gratuity for housemaids in the UAE and how you can find trusted assistance with these processes through Tadbeer service providers, including Tadbeer Excellence Center.
How Is Gratuity for Housemaids Calculated in UAE?
In the UAE, your End-of-Service Gratuity is calculated based on your Basic Salary and total years of service. It is important to distinguish between what you take home and what is used for the calculation.
Note: Note: Basic salary refers to the fixed amount paid for work, while gross salary includes the basic salary plus all allowances such as food, housing, and transportation.
While the new Federal Decree-Law No. 9 of 2022 governs domestic workers, it deferred specific gratuity formulas to future Cabinet decisions. Therefore, current practice still follows the established rule:
Standard Rate: 14 days of Basic Salary for every completed year of service.
Eligibility: Requires at least one full year of continuous employment.
Quick Gratuity Calculation Guide: The Formula
(Daily Basic Salary) × (14 Days) × (Number of Years Served)
Step-by-Step Breakdown
Identify Basic Salary: Exclude all extra allowances (food, etc.).
Calculate Daily Rate: Divide your Monthly Basic Salary by 30.
Multiply by 14: This gives you the gratuity amount for one single year.
Multiply by Total Years: Total the amount for all full years of service.
Practical Example
Worker Profile: Monthly Basic Salary of AED 1,500 | Service Period: 3.5 Years
Daily Wage: AED 1,500 ÷ 30 = AED 50
Gratuity per Year: AED 50 × 14 days = AED 700
Total for 3 Full Years: AED 700 × 3 = AED 2,100
Note: For the remaining 6 months (partial years) and specific contract termination reasons, always use the official MOHRE Domestic Workers Dues Calculator to get the final, precise figure.
What Is Gratuity and Why Is It Important?
Gratuity is a mandatory end-of-service benefit provided to housemaids as compensation for their years of service.
This financial benefit is part of UAE labor law, which aims to safeguard employee rights, ensuring fair compensation after contract completion or job termination.
The gratuity is typically calculated based on the duration of employment, and the amount can vary depending on the number of years worked and the reason for the contract ending.
Is Gratuity for Domestic Workers Mandatory in the UAE? (2025 Update)
Under UAE law, domestic workers are entitled to end-of-service benefits, commonly referred to as gratuity.
While the current Federal Decree-Law No. 9 of 2022 concerning Domestic Workers does not specify a detailed gratuity calculation formula, it clearly preserves the worker’s right to end-of-service.
the prevailing practice followed by authorities, courts, and MOHRE tools continues to rely on the previously established standard of
“14 days’ basic salary for each completed year of service”
provided the domestic worker has completed at least one full year of continuous employment.
Gratuity for Housemaids in UAE
When looking for guidance, a reliable Tadbeer center like Tadbeer Excellence Center can assist with the necessary documentation and payment processes. With Tadbeer centers, employers have the added benefit of legal expertise, ensuring compliance with UAE laws regarding gratuity for housemaids and helping both the employer and employee navigate the final service stages smoothly.
Key Gratuity Rules Every Employer Should Know
- No Gratuity for Dismissal Due to Misconduct: If a housemaid is terminated due to misconduct, they may forfeit their gratuity entitlement. UAE law outlines specific instances of misconduct that can justify dismissal without end-of-service benefits.
- Notice Period for Gratuity Eligibility: Giving a proper notice period is essential when terminating a contract. Generally, a 30-day notice is required (Notice period requirements depend on the terms specified in the approved domestic worker employment contract.), and gratuity is often calculated at the end of this period.
- Gratuity Payment Timeline: End-of-service dues, including gratuity where applicable, should be settled within 14 days from the contract termination date, in line with MOHRE guidelines.
Finding "Tadbeer Near Me" for Easy Gratuity Processing
If you’re managing end-of-service procedures, including gratuity, using the search term “Tadbeer near me” can help locate nearby Tadbeer service centers that offer domestic worker services such as gratuity calculation, end-of-service settlement, payment management, and new hire processing. The Tadbeer Excellence Center is one such reliable option, helping Dubai families ensure smooth compliance with UAE regulations.
FAQs
Is gratuity legally required for domestic workers in the UAE?
Yes. Domestic workers are entitled to end-of-service benefits. While the current law defers detailed calculations to future Cabinet decisions, the 14-day-per-year rule remains the standard practice applied by authorities and MOHRE tools.
Is gratuity calculated on total salary or basic salary?
Gratuity is calculated strictly on the basic salary, excluding allowances such as housing, food, or transportation.
When must gratuity and final dues be paid?
All end-of-service entitlements must be paid within 14 days from contract termination.
What is the safest way to calculate gratuity correctly?
Using the official MOHRE Domestic Workers Dues Calculator is the most accurate and legally aligned method.
Does the reason for contract termination affect gratuity?
Yes. The termination reason can affect final entitlements, as reflected in MOHRE’s official calculator:
Contract completed: Gratuity is calculated normally based on completed years of service.
Worker resigned without valid reason: Gratuity or final dues may be reduced.
Termination due to employer breach: Full gratuity and additional compensation may apply.
Termination due to serious misconduct: Gratuity may be reduced or forfeited.
For accurate results, amounts should always be verified using the official MOHRE Domestic Workers Dues Calculator.
Conclusion
Handling gratuity for a housemaid in the UAE requires adherence to specific labor laws, and using trusted Tadbeer services like Tadbeer Excellence Center can simplify the process. From calculating the correct gratuity amount to managing final dues and documents, Tadbeer centers provide peace of mind, ensuring your housemaid receives fair compensation. Whether you’re at the end of a service contract or preparing for a new hire, Tadbeer centers in Dubai are here to help every step of the way.
