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Gratuity for Domestic Workers in the UAE

Gratuity is one of the most important rights that workers in the UAE, including domestic workers, need to understand clearly. For employers, it’s not just a matter of courtesy but also a legal obligation. For workers, it’s the financial security that comes at the end of their service. With recent updates to UAE labor regulations, here’s a detailed and up-to-date guide on gratuity for domestic workers in 2025.

What is Gratuity for Domestic Workers and Why is it Important?

Gratuity, often called end-of-service benefits, is a lump-sum payment made to an employee after their service ends. It is calculated based on the worker’s length of service and their last basic salary.

For domestic workers—housemaids, nannies, drivers, gardeners, and similar roles—it serves two main purposes:

  • A legal requirement under UAE law, ensuring fair treatment and financial protection when their contract ends.
  • A token of appreciation for their years of service.

Eligibility: Who Qualifies for Gratuity?

According to the UAE Domestic Workers Law, anyone employed in a private household in roles such as a housemaid, nanny, cook, driver, or gardener is considered a domestic worker.

Gratuity for Domestic Workers

Who counts as a domestic worker?

Anyone employed in household service roles such as maids, cooks, babysitters, private drivers, gardeners, or security staff.

Minimum service requirement

A domestic worker must complete at least one full year of continuous service with the same employer to qualify for gratuity.

When gratuity might not apply

If a worker leaves before completing one year, or if they are dismissed for serious misconduct under the law, gratuity may not be payable.

How to Calculate Gratuity for Domestic Workers in the UAE

The calculation is based on the last basic monthly salary, not including allowances or bonuses.

The standard formula:

  • 21 days of basic salary for each year of service during the first five years.
  • 30 days of basic salary for each additional year after five years.

Partial years are calculated proportionally.

The Difference Between Basic Salary and Total Salary for Calculation

Gratuity is calculated only on the basic salary, excluding food, accommodation, transport, or other allowances. For example, if a maid’s total package is AED 3,000 but the basic salary is AED 2,000, gratuity is calculated on AED 2,000.

How the Reason for Leaving Impacts the Gratuity Amount

  • Resignation: Workers who resign after completing at least one year are still entitled to gratuity.
  • Termination: If the employer terminates the contract without valid reason, gratuity must be paid in full.
  • Misconduct dismissal: If a worker is dismissed for serious misconduct, gratuity may be forfeited.

Using a Free Gratuity Calculator for an Instant Estimate

Instead of manually calculating, workers and employers can use a Free Online Gratuity Calculator. By entering start and end dates, salary, and contract type, they get an instant, accurate estimate based on UAE law.

The UAE Domestic Workers Law: Key Rules Employers Must Know

The law governing domestic workers emphasizes fair treatment and timely settlement.

  • Employer obligations: Employers must pay gratuity and other end-of-service entitlements within 14 days from the last working day.

Penalties for Non-Compliance or Delayed Payment

Failure to pay gratuity on time can result in fines and legal action. Workers have the right to file a complaint through Tadbeer centers or directly with the Ministry of Human Resources and Emiratisation (MOHRE).

Other End-of-Service Benefits for Domestic Workers

Besides gratuity, domestic workers are entitled to other benefits upon the end of their contract:

  • Payment for Unused Annual Leave: If the worker has any accrued but unused vacation days, they must be paid for them. This is calculated based on their basic salary.
  • Repatriation Flight Ticket: The employer is responsible for providing a one-way flight ticket for the worker to return to their home country, unless the worker is transferring to a new employer within the UAE.
  • Salary and Rights During the Notice Period: If a notice period is applicable (typically 30 days), the worker is entitled to their full salary and all other benefits during this time, whether they are working or not.

How to Process Gratuity and Final Settlement

The most reliable and official way to handle the final settlement is through a government-approved Tadbeer center. These centers are designed to manage all aspects of domestic worker employment, from hiring to contract termination.

By processing the final payment through Tadbeer, you create an official record that all dues have been paid correctly. This protects both the employer and the employee and prevents future disputes. You can easily find a “Tadbeer near me” through a quick online search or by visiting the MOHRE website.

Necessary Documents for Closing the Contract and Paying Gratuity

  • Worker’s employment contract
  • Emirates ID and passport copy
  • Salary records or wage slips
  • Exit or cancellation documents
Tadbeer center uae

Update 2025: Is Gratuity Still a Requirement for Domestic Workers?

Yes. As of 2025, gratuity remains a mandatory end-of-service benefit under UAE law. The government continues to emphasize fair treatment of domestic workers, and no legal changes have been made to remove gratuity entitlements.

Employers must comply, and workers have full rights to claim gratuity through MOHRE or Tadbeer if disputes arise.

Frequently Asked Questions (FAQ)

Gratuity can only be denied if the worker is terminated under specific, severe circumstances outlined in the Labour Law (e.g., causing deliberate damage or assault). It cannot be denied for minor issues or if the worker resigns.

If there’s a disagreement, the first step should be to try and resolve it directly with the employer. If that fails, the worker can file a complaint with MOHRE through their helpline or by visiting a Tadbeer center. The Ministry will then mediate the dispute.

No, the gratuity amount itself is not subject to deductions. However, if the worker owes the employer any money (e.g., for a loan or for damages they agreed to pay for), this should be settled separately and documented clearly in the final settlement agreement.

Conclusion

For domestic workers, gratuity is more than just a payout—it’s recognition of years of service and a safeguard for the future. For employers, paying gratuity correctly is both a legal duty and a reflection of fairness.

The takeaway is simple: keep clear records, understand the law, and process gratuity on time. Doing so ensures a respectful and lawful end to the employment relationship.

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