Calculate accurate gratuity payments according to UAE labor law for all categories of domestic workers
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Understanding end of service benefits (EOSB) for domestic workers in the UAE is crucial for both employers and employees. This comprehensive guide explains everything you need to know about calculating and claiming these benefits according to UAE labor law.
End of Service Benefits (EOSB), commonly referred to as gratuity pay, are financial compensations owed to domestic workers upon the termination of their employment contract in the UAE. These benefits are mandated by UAE labor law and serve as a form of financial security for workers after their service period ends.
All domestic workers registered under UAE's Domestic Workers Law are entitled to end of service benefits, including:
The calculation of EOSB depends on several factors including length of service, type of termination, and the worker's basic salary. Here's the standard calculation method:
| Service Duration | Gratuity Calculation |
|---|---|
| Less than 1 year | No gratuity payable |
| 1-5 years | 21 days' basic salary for each year of service |
| More than 5 years | 30 days' basic salary for each additional year beyond 5 years |
Let's look at some practical examples to understand how gratuity is calculated:
Basic salary: AED 2,500/month
Service: 3 years
Termination: Employee resignation
Calculation:
Daily wage = 2,500 ÷ 30 = AED 83.33
Gratuity = 83.33 × 21 × 3 = AED 5,250
Basic salary: AED 3,500/month
Service: 7 years
Termination: Employer-initiated
Calculation:
Daily wage = 3,500 ÷ 30 = AED 116.67
First 5 years = 116.67 × 21 × 5 = AED 12,250
Next 2 years = 116.67 × 30 × 2 = AED 7,000
Total gratuity = 12,250 + 7,000 = AED 19,250
Beyond basic gratuity, domestic workers may be entitled to or subject to:
The UAE government has made several updates to labor laws affecting domestic workers in recent years. Key changes include:
When calculating end of service benefits, employers often make these mistakes:
If there's a disagreement about end of service benefits, follow these steps:
We've answered the most common questions about end of service benefits in our FAQ section below.
Proper calculation and payment of end of service benefits is not just a legal requirement but also an ethical obligation for employers of domestic workers in the UAE. Using our calculator ensures accurate computation according to current UAE labor laws. For complex cases or disputes, consulting with a labor law specialist is recommended.
Yes, part-time domestic workers are eligible for prorated end of service benefits based on their working hours and duration of service.
In case of death, the worker's legal heirs are entitled to receive all end of service benefits that would have been payable to the worker.
No, visa and recruitment costs cannot be deducted from end of service benefits according to UAE labor law.
For partial years, gratuity is calculated proportionally. For example, 6 months service would entitle the worker to half of a full year's gratuity.
If a worker resigns before completing one year of continuous service, they are not entitled to any gratuity payment.
The basic gratuity calculation is the same, but live-in arrangements may include additional considerations like accommodation allowances.
You can use our calculator, consult with MOHRE, or seek advice from a labor law professional to verify your calculation.
Typically you'll need: employment contract, passport copies, visa documents, salary certificates, and any termination notices.
Claims should be made within one year from the date of termination, though earlier resolution is recommended.
By law, all end of service benefits should be paid in a single lump sum at the time of termination unless both parties agree otherwise.