Calculating gratuity for domestic workers can seem daunting at first. However, with a clear understanding of the process and some straightforward steps, it becomes manageable. In this guide, we will walk you through the steps of calculating gratuity for domestic workers in the UAE, using transition words to ensure clarity and flow.
Additionally, we will provide a FAQ section to address common queries.
Step-by-Step Guide to Calculating Gratuity
1. Understand the Legal Framework
First and foremost, it’s essential to be familiar with the UAE labor laws regarding gratuity for domestic workers. According to the UAE Domestic Workers Law, gratuity is calculated based on the worker’s length of service and their last drawn salary.
2. Determine the Length of Service
Next, calculate the total length of service. This is the period from the date of joining until the end of service. For instance, if a domestic worker has been employed from January 1, 2020, to December 31, 2023, their length of service is four years.
3. Calculate the Last Drawn Salary
Then, note the last drawn salary of the domestic worker. This is the basis for gratuity calculation. Let’s assume the worker’s last drawn salary is AED 2,000 per month.
4. Apply the Gratuity Formula
Moreover, the gratuity is calculated as follows:
- For the first year of service: 14 days of basic salary.
- For each subsequent year: 30 days of basic salary.
For example, if a worker has completed four years of service:
- First year: 14 days of salary = (14/30) * 2000 = AED 933.33
- Next three years: 30 days of salary per year = 3 * 2000 = AED 6,000
Thus, the total gratuity = AED 933.33 + AED 6,000 = AED 6,933.33
5. Consider Deductions or Adjustments
Additionally, consider any deductions or adjustments. If the worker has any outstanding loans or advances, these should be deducted from the gratuity amount.
6. Final Calculation and Payment
Finally, sum up the gratuity amount and make the payment accordingly. Ensure that the payment is made promptly and in accordance with the UAE labor laws to avoid any legal issues.
You can visit here for Domestic Workers Gratuity Calculator.
Visit the Official UAE Govt. Website Click Here.
Fill the starting date and Last day of your Job.
Write you Net Salary and Basic Salary.
Now select the reason of leaving.
Once you will fill the required details it will show your gratuity in the bottom.
Frequently Asked Questions (FAQ)
Q1: Are all domestic workers entitled to gratuity? Yes, all domestic workers in the UAE are entitled to gratuity, provided they have completed at least one year of continuous service.
Q2: How is the daily wage calculated for gratuity purposes? The daily wage is calculated by dividing the monthly salary by 30 days. For example, if the monthly salary is AED 2,000, the daily wage is AED 66.67.
Q3: Is gratuity calculated on the basic salary or total salary? Gratuity is calculated on the basic salary, excluding allowances and other benefits.
Q4: Can an employer withhold gratuity? No, an employer cannot withhold gratuity. It is a legal entitlement of the worker, and any withholding can result in legal consequences for the employer.
Q5: What happens if a domestic worker resigns before completing a year? If a domestic worker resigns before completing one year of service, they are not entitled to gratuity.
Q6: Are there any exceptions to gratuity entitlement? Gratuity entitlement may be affected if the worker is terminated for misconduct or other reasons specified under UAE labor laws.
By following this guide and understanding the legal framework, you can accurately calculate gratuity for domestic workers in the UAE. Ensuring compliance with these guidelines not only fulfills legal obligations but also promotes fair treatment and satisfaction among domestic workers.
