Calculating End-of-Service Benefits for Domestic Workers in the UAE

Muhamed abdo - | UAE

Welcome to our comprehensive guide on calculating gratuity for domestic workers in the UAE. In this article, we'll delve into the intricacies of gratuity calculation, ensuring you have a clear understanding of how to maximize this benefit for your domestic employees

Welcome to an in-depth guide on understanding and calculating end-of-service benefits for domestic workers in the UAE. In this comprehensive article, we will delve into the intricacies of this topic, exploring its legal aspects, calculation methods, and challenges faced by domestic workers. By the end, you'll have a clear understanding of how end-of-service benefits are determined and their significance in the context of UAE labor laws.

Understanding End-of-Service Benefits

End-of-service benefits refer to the compensation provided to employees upon the termination of their employment. For domestic workers in the UAE, these benefits hold immense importance as they serve as a form of financial security post-employment. Understanding the nuances of end-of-service benefits is crucial for both employers and employees.

What are End-of-Service Benefits?

End-of-service benefits typically include gratuity payments, which are calculated based on the employee's length of service and final salary. These benefits are mandated by UAE labor laws to ensure fair compensation for employees who have dedicated their time and effort to their employers.

Importance of End-of-Service Benefits

For domestic workers, end-of-service benefits serve as a crucial source of income during transitions between jobs or upon retirement. They provide financial stability and help workers maintain their standard of living even after leaving their employment.

Calculating End-of-Service Benefits

Calculating end-of-service benefits involves several factors that determine the final amount an employee is entitled to receive. Understanding these factors is essential for employers to fulfill their legal obligations and for employees to know what they can expect in terms of compensation.

Factors Influencing Calculation

The key factors that influence the calculation of end-of-service benefits include the employee's length of service, their final salary, and any additional benefits or allowances they may be entitled to.

How to Calculate End-of-Service Benefits?

The calculation of end-of-service benefits is typically based on a formula that takes into account the employee's years of service and their average salary over a specified period. This calculation method ensures that employees receive a fair and equitable amount upon the termination of their employment.

Legal Aspects

Understanding the legal framework surrounding end-of-service benefits is crucial for both employers and employees in the UAE. Familiarizing oneself with UAE labor laws ensures compliance and protects the rights of domestic workers.

UAE Labor Laws

UAE labor laws stipulate the rights and obligations of employers and employees concerning end-of-service benefits. These laws provide clear guidelines on how benefits should be calculated, accrued, and disbursed, ensuring fairness and transparency in employment practices.

Rights of Domestic Workers

Domestic workers in the UAE are entitled to the same rights and benefits as other employees, including end-of-service benefits. Recognizing and upholding these rights is essential for fostering a supportive and equitable work environment.

Comparison with Other Countries

It's also insightful to compare end-of-service benefits in the UAE with those in other countries, particularly within the GCC region and international standards. This comparison provides valuable context and highlights areas where improvements or adjustments may be needed.

GCC Countries

End-of-service benefits vary across GCC countries, with each nation having its own regulations and calculation methods. Understanding these differences can help employers and employees navigate cross-border employment scenarios effectively.

International Standards

Benchmarking end-of-service benefits against international standards offers a broader perspective on best practices and ensures alignment with global norms. Adhering to international standards enhances the credibility and attractiveness of the UAE's employment landscape.

Challenges Faced by Domestic Workers

Despite the legal provisions and calculation methods, domestic workers in the UAE encounter various challenges related to end-of-service benefits. These challenges can have financial, social, and emotional implications for workers and their families.

Financial Implications

Delays or discrepancies in end-of-service benefit payments can significantly impact domestic workers' financial stability, leading to financial strain during crucial periods of transition.

Social and Emotional Impact

The uncertainty surrounding end-of-service benefits can also take a toll on domestic workers' well-being, causing stress and anxiety about their future livelihoods.


In conclusion, understanding and accurately calculating end-of-service benefits for domestic workers in the UAE are essential for fostering a fair and equitable work environment. By adhering to UAE labor laws, recognizing domestic workers' rights, and addressing challenges proactively, employers can contribute to a positive and supportive workplace culture.

About Author

Muhamed abdo
Muhamed abdo
489 Total posts

Read Also

UAE restaurant offers complimentary buttermilk amid peak summer heat

One Sharjah restaurant is providing a welcome respite from the sweltering desert heat as the summer solstice approaches.

Dubai airports recorded over half a million travelers during 4-day Eid Al Adha

The General Directorate of Residency and Foreigners Affairs (GDRFA) in Dubai has affirmed its preparedness for the influx of travelers returning from the Haj pilgrimage. They have implemented special measures, including a designated stamp to welcome...

The UAE warned companies and social media influencers of a fine of up to 10,000 dirhams

A maximum fine of 10,000 dirhams was issued by the United Arab Emirates to businesses and social media influencers.

UAE banks grant $22.2bn loans to small and medium enterprises (SMEs)

By the quarter's end in 2024, the total amount of loans made by UAE-based banks to SMEs had accumulated to AED81.7 billion.

UAE mandates firms to hire Emiratis within 10 days or face fines

The UAE Ministry of Human Resources and Emiratisation has given private sector enterprises just 10 days to complete their Emiratization targets or face fines.

Dubai RTA facilitated travel for 6.7 million passengers During Eid Al Adha 2024

During the Eid Al Adha holiday period from June 15 to 18, 2024, Dubai’s Roads and Transport Authority (RTA) facilitated transportation for over 6.7 million passengers across the city.

Dubai Mall Paid Parking: Fees, Free Areas, Exemptions, All important Details

Starting July 1, significant changes are set to take effect in the parking arrangements at Dubai Mall, impacting both the cost and convenience for visitors.

Dubai Reveals DSS Schedule Featuring Deals, Prizes, Concerts, and More

The 65th annual Dubai Summer Surprises (DSS) will take place from June 28th through September 1st, 2024, and will feature the same fantastic events, shopping, prizes, restaurants, and accommodation deals as in previous years.

Dubai: E-Scooter and Bicycle Accidents Claim 4 Lives, Injure 25 This Year

The Dubai Police Department released disturbing data on e-scooter and bicycle accidents in the first half of 2024, highlighting serious safety issues and the need for enforcement measures.

The accommodation deals in the UAE start at 159 dirhams

The starting price for accommodations in the United Arab Emirates is 159 dirhams.

The cases in which the UAE Labor Law allows denial of annual leave

Is it permissible for employers in the UAE to refuse yearly leave because of other employees' absences?

UAE clarifies Divorce rights for non-Muslim women seek separation from husbands

Non-Muslim individuals residing in the UAE have the option to apply the personal laws of their home country in matters of personal status, such as marriage, divorce, inheritance, wills, and proof of parentage.

Dubai Relaxes Travel Ban Regulations for Divorced Parents

Dubai has simplified the process for divorced parents to travel abroad with their children by easing the existing travel ban regulations.

Abu Dhabi Announces Free Public Parking & Darb Toll Waiver for Eid Al-Adha 2024

Abu Dhabi's authorities stated on Friday that, in commemoration of the Eid Al Adha festivities, all public parking will be free from Saturday, June 15, until Tuesday, June 18.

Dubai Police integrating AI into police & security operations

In order to improve efficiency and decrease customer waiting times, the Dubai Police have begun a revolutionary journey by incorporating artificial intelligence (AI) into 29 administrative procedures.

Deliveroo UAE announces the launch of electric bikes pilot in Dubai

Electric bikes and battery-swapping technologies are being tested by Deliveroo to see how well they work in real-world delivery situations.

Dubai Airlines and Airport Release Travel Advisory for Eid & Summer holiday 2024

In anticipation of the summer vacations and Eid Al Adha, the airport administration and Dubai Airlines have issued a warning to passengers. Dubai International Airport (DXB) continues to be the busiest airport in the world for international...

UAE Clarifies Midday Work Ban Start Date, Operating Hours & Fines

The UAE's regulatory ban on outdoor work during the hottest months ensures worker safety.

Imprisonment and deportation punishment for a woman who assaulted a police officer in Dubai

An individual who assaulted a law enforcement officer in Dubai was sentenced to imprisonment and deportation as a consequence.

Dubai announces dates for providing visa services in the coming days

In preparation for the Eid al-Adha holidays, Dubai has announced the scheduling of its visa services.

A popular restaurant in Abu Dhabi closed due to insects and poor hygiene

Following the discovery of insects in the kitchen, the Abu Dhabi eatery was forced to close its doors.

The Dubai Police launched an initiative to repair 400 cars free of charge for drivers

In an effort to provide drivers with free repairs for 400 vehicles, the Dubai Police Department has initiated a program.

UAE Insurers Deny Flood-Related Claims for Certain Drivers Vehicles

Insurers in the United Arab Emirates have been under fire for turning down claims from drivers who had to drive through flooded streets after the record-breaking rainfall on April 16. The natural disaster clause investigates this aspect thoroughly,...

Sheikh Hamdan announces AI-qualified teachers for Dubai schools in near future

Dubai is embarking on a groundbreaking initiative to revolutionize its educational landscape by integrating artificial intelligence (AI) into school curriculums.

The Labor Law specifies the dates for paying salaries to UAE employees

The Labor Law specifies the dates on which employees in the UAE must receive their salaries.

The UAE Labor Law determines salary payment options for employees

The UAE Labor Law establishes the various wage payment alternatives that are available to workers.

Wizz Air Abu Dhabi unveil huge 20% summer sale for July & August ticket bookings

An alluring deal has been offered by Wizz Air Abu Dhabi, offering a 20% discount on certain routes for travel in July and August. Travelers can take advantage of this great one-day flash deal on June 11 to visit a variety of destinations this summer....

Dubai Police honored 22 safe drivers

22 drivers have been recognized by the Dubai Police Department for their safe driving.

A remote work visa in Dubai makes it easier to obtain residency and attracts digital nomads