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As an employer in the UAE, it’s important to understand the end-of-service benefits or gratuity payments that are required for your domestic worker, commonly known as a maid. These benefits are designed to provide financial support for the maid upon the termination of their employment. In this blog post, we will discuss the end-of-service benefits for maids in the UAE and how they are calculated. This calculation is according to Article 26 of UAE Federal Law no. (10) of 2017.
The law applies to occupations listed under the UAE Domestic Labour Law. This list includes:
- housemaid/houseboy
- private sailor/boatman
- watchman and security guard
- household shepherd
- family chauffeur
- parking valet workers
- household horse groomer
- household falcon care-taker and trainer
- domestic laborer
- housekeeper
- private coach/driver
- private teacher/tutor
- babysitter/nanny
- household farmer
- gardener
- private nurse
- private PRO
- private agriculture engineer
- private cooks/chefs
Article 26 of the federal law 10/2017 states:
The worker, who completes one year or more of continuous service, shall, at the end of his/her service be entitled to an end-of-service compensation. Unpaid days of absence from work shall enter into the calculation of the end-of-service compensation. The compensation shall be calculated on the basis of 14-day wages for each year of service and becomes due upon the termination of the contract. The calculation of the compensation resumes upon the renewal of the contract. The worker shall be entitled to compensation for the portion of time worked during the last year of employment on a pro-rata basis provided the worker has completed no less than one full year of continuous employment.
So, end-of-service benefits are calculated based on the length of time the maid has been in your employ. For every year of service, the maid is entitled to 14 days of basic salary. This means that if the maid has been working for you for 5 years, they would be entitled to 5 x 14 = 70 days of basic salary.
The basic salary used to calculate end-of-service benefits is the maid’s last basic salary before the termination of their employment. This salary should include any regular allowances, such as housing and transportation allowances, but should exclude any bonuses or overtime pay.
In addition to the end-of-service benefits, the maid is also entitled to any outstanding wages and any unused annual leave. If the maid has any unpaid loans, such as for recruitment fees, these should also be settled before their end-of-service benefits are paid.
It’s important to note that end-of-service benefits are required to be paid within 14 days of the termination of the maid’s employment. If the employer fails to pay the end-of-service benefits, they may be subject to fines and penalties.
In conclusion, understanding the end-of-service benefits for maids in the UAE is crucial for employers. By calculating the end-of-service benefits and paying them in a timely manner, employers can ensure they are meeting their legal obligations and treating their domestic workers fairly.