Gratuity Calculation for Domestic Workers in UAE

Federal Decree-Law No. 9 of 2022 does not itself prescribe a specific end-of-service gratuity formula for domestic workers. Instead, Article 22 provides that the UAE Cabinet shall adopt the rules for calculating and paying end-of-service gratuity.
Standard private sector employee? Use our Gratuity Calculator UAE for the formula that applies to you.
Is There a Fixed Gratuity Formula for Domestic Workers?
This is genuinely unclear under the current legal framework. Federal Decree-Law No. 9 of 2022 does not set out a specific gratuity formula for domestic workers. Instead, Article 22 provides that the UAE Cabinet shall adopt the rules and regulations for calculating and paying end-of-service gratuity. This is different from the standard private-sector framework, which has its own statutory gratuity formula.
The Previous Domestic Worker Gratuity Formula
The previous domestic-worker legislation, Federal Law No. 10 of 2017, contained a specific end-of-service gratuity provision. However, the current Federal Decree-Law No. 9 of 2022 does not reproduce that formula. Instead, Article 22 leaves the calculation and payment rules to a Cabinet decision.
For this reason, an older gratuity formula should not be presented as a confirmed current legal entitlement unless supported by the applicable Cabinet decision or current MOHRE guidance.
Domestic Worker Eligibility to Hire in the UAE
If you are looking to hire a domestic worker rather than calculate gratuity as one, MOHRE sets specific requirements for sponsoring employers.
How to Apply for a Domestic Worker Work Permit
Applications and contract renewals can also be handled through licensed Tadbeer centers rather than only online, which many employers prefer for document verification support.
Domestic Worker Rights Under Current Law
Federal Decree-Law No. 9 of 2022 sets out several protections that apply regardless of the unresolved gratuity question.
MOHRE Domestic Worker Complaints
If a dispute arises between an employer and a domestic worker that cannot be resolved directly, either party can refer the matter to MOHRE. MOHRE will attempt to mediate an amicable settlement first, and if that fails within the period set out in the executive regulations, the dispute is referred to the competent court.
Only use MOHRE licensed Tadbeer centers and recruitment agencies for hiring, since MOHRE has revoked licenses from and shut down several unlicensed domestic worker recruitment operations, which carry real legal risk for both employers and workers.
Common Mistakes People Make
Transferring a Domestic Worker to a New Employer
A domestic worker can generally move to a new sponsoring employer under specific conditions set out in the executive regulations, rather than only through a fresh recruitment process from abroad. This transfer process still runs through MOHRE and typically requires updated documentation, a new work permit, and confirmation that the previous employment relationship has been properly closed out, including any final settlement owed to the worker.
What Happens to Repatriation Costs on Transfer
If a domestic worker joins a new employer within the UAE rather than returning to their home country, the original employer is generally not responsible for covering repatriation costs, since that responsibility effectively passes along with the new employment arrangement. This is a useful distinction for both employers and workers to understand before assuming who bears which cost during a transfer.
Domestic Worker Contracts and Documentation
Every domestic worker employment relationship should be documented through a MOHRE registered standard contract, not just a private arrangement between the household and the worker. This contract sets out salary, working conditions, and the responsibilities of both parties, and having it properly registered matters significantly if a dispute or gratuity question arises later.
What the Contract Should Cover
Keeping a signed copy of this contract, along with recent salary records, protects both employer and worker if questions come up later about entitlements or the terms actually agreed.
Wage Protection for Domestic Workers
Certain domestic-worker professions are covered by the Wage Protection System under the specific rules issued by MOHRE. Whether WPS applies depends on the worker’s profession and the applicable requirements. Employers should check the worker’s current MOHRE record and applicable WPS rules rather than assuming that every domestic worker is covered in exactly the same way.
Domestic Worker Health Insurance and Medical Care
Employers must provide medical care or health insurance for domestic workers as required under the applicable UAE rules. From 1 January 2025, health insurance is also required as a prerequisite for the issuance or renewal of residency permits for private-sector employees and domestic workers, subject to the applicable rules and exceptions.
What If My Employer Refuses to Provide Insurance or Medical Care
This is a valid basis for a MOHRE complaint. Domestic workers, like standard private sector employees, can raise disputes over unmet employer obligations directly with MOHRE, which will attempt mediation before referring an unresolved case to the relevant court.
Working Hours and Rest for Domestic Workers
Unlike standard private sector roles with an 8 hour daily cap, domestic worker hours are structured around a rest guarantee rather than a fixed maximum working day. The law requires at least 12 hours of rest within each 24 hour period, with at least 8 of those hours consecutive, which in practice limits how much active working time is possible in a single day without breaching the rest requirement.
