UAE Gratuity Calculator
✓ UAE Domestic Workers Law (No. 9/2022)
Exclude allowances. No minimum salary threshold.
How Domestic Worker Gratuity is Calculated in the UAE
Under UAE labor regulations, end-of-service gratuity for domestic workers—such as nannies, housemaids, and family drivers—is calculated using a different formula than standard private sector employees. To be eligible for this payout, a domestic worker must complete at least one full year of continuous service. Once this milestone is reached, their gratuity is calculated at a rate of 14 days of their basic wage for every completed year of service.
The calculation is strictly based on the worker’s basic monthly salary. This means any additional allowances provided by the employer, such as food, housing, or transportation stipends, are excluded from the equation. To determine the payout, the monthly basic wage is divided by 30 to find the daily wage, which is then multiplied by 14, and finally multiplied by the total number of years served.
Understanding the 2022 Domestic Worker Law
The most recent major legislative update governing household staff is Federal Decree-Law No. 9 of 2022. This comprehensive law strengthened protections for domestic workers, cementing rights related to working hours, rest days, and recruitment agency regulations. While the text of the 2022 law deferred the exact mathematical formula for gratuity to future Cabinet decisions, standard practice and Ministry of Human Resources and Emiratisation (MOHRE) guidelines continue to apply the established benchmark of 14 days of basic salary per year.
As an employer, it is your legal responsibility to ensure that all final financial dues, including end-of-service gratuity, unpaid wages, and compensation for unused annual leave, are settled promptly. According to MOHRE regulations, these payments must typically be issued within 10 to 14 days following the expiration or termination of the employment contract.
Frequently Asked Questions
Who qualifies as a domestic worker under UAE law?▼
The UAE’s domestic worker regulations cover several specific occupations employed directly by households. This includes housemaids, nannies, babysitters, family drivers, gardeners, private cooks, security guards, and personal nurses. All these roles follow the same 14-day gratuity calculation formula.
Do domestic workers lose gratuity if they resign?▼
If a domestic worker resigns lawfully after completing at least one continuous year of service, they are typically entitled to their full end-of-service gratuity. However, if the worker absconds (abandons their job without notice) or is terminated for severe gross misconduct, they may forfeit their right to receive an end-of-service payout.
Are food and housing allowances included in the gratuity?▼
No, allowances are completely excluded. According to UAE labor guidelines, gratuity must be calculated strictly on the basic wage. Any supplementary benefits provided by the employer, such as food, accommodation, or transportation, do not factor into the final end-of-service calculation.