Oman End of Service Gratuity Calculator
Oman End of Service Gratuity Calculator
End-of-service gratuity for non-Omani workers under Oman’s Labour Law (Royal Decree 53/2023): a month’s basic wage a year since 31 July 2023, and the old rate for service before it.
Oman end-of-service gratuity
Basic wage OMR 500 a month (the Ministry’s example), joined 1 August 2021, so 2 years before 31 July 2023 and 3 years 2 months since
Gratuity across the two laws
- B
- the last basic monthly wage
- S₁
- years of service before 31 July 2023 (old law: half a month a year for three years, a month after)
- S₂
- years of service since 31 July 2023 (Article 61: a month a year)
Worked example
Basic wage OMR 500 a month (the Ministry's example), joined 1 August 2021, so 2 years before 31 July 2023 and 3 years 2 months since
Before 31 July 2023: ½ × 2 years = 1 month's wage = OMR 500.00
Since 31 July 2023: 3.1667 years × 1 month = OMR 1,583.33
Gratuity = 500.00 + 1,583.33 = OMR 2,083.33
Had all 5.17 years been at the new rate, it would be OMR 2,583.33
How Oman’s end-of-service gratuity works now, and what replaces it
Oman’s Labour Law, issued by Royal Decree 53/2023 and in force from 31 July 2023, gives a non-Omani worker an end-of-service gratuity of not less than one month’s basic wage for each year of service, calculated on the last basic wage, with part years in proportion (Article 61). The old law, Royal Decree 35/2003, gave only 15 days’ basic wage for each of the first three years and required a full year before anything was due. The new law has no minimum period.
Service before 31 July 2023. The Ministry of Labour clarified in October 2024 that service before the new law still earns the old rate and service after it the new one. Its own example: a worker hired on 1 August 2021 on a basic wage of OMR 500 earns OMR 250 for each year to July 2023 and OMR 500 for each year after. On that example, with 3 years 2 months since the new law, the gratuity is OMR 2,083.33; the old rate costs this worker OMR 500.00.
The savings system that will replace it. The Social Protection Law (Royal Decree 52/2023) sets up a compulsory savings system for non-Omani workers, run by the Social Protection Fund, into which the employer pays 9% of the monthly basic wage (OMR 45 a month on OMR 500), with a minimum return of 2% a year. It was due by 19 July 2026, but Royal Decree 60/2025 moved the deadline to 19 July 2027. As of September 2026 it has not started, so the whole benefit is still the gratuity calculated here. Service up to the switch should still be settled under the Labour Law; check the Fund’s rules when it starts.
Who this covers. Non-Omani workers in the private sector. Omani nationals are covered by the Social Protection Fund instead. Resigning does not reduce the gratuity under the 2023 law; dismissal for serious misconduct can. Unpaid leave may be left out of the service counted. Choose OMR in the currency menu for rials. This is arithmetic on the figures you enter, not financial advice.
Frequently asked questions
How is end-of-service gratuity calculated in Oman now?
A month’s last basic wage for each year of service since 31 July 2023, and 15 days’ basic wage for each of the first three years before that date (a month for later years), part years in proportion.
Is the savings system replacing gratuity for expatriates already?
Not yet. Royal Decree 60/2025 moved its start to 19 July 2027. Until then the employer pays the Labour Law gratuity.
Do I need a full year to get gratuity in Oman?
Not under the 2023 law, which counts part years in proportion. The old law’s one-year minimum no longer applies.
Is Oman gratuity on basic or gross salary?
On the last basic wage. Allowances are left out unless your contract says otherwise.
Related calculators
References
- Sultanate of Oman. Labour Law issued by Royal Decree 53/2023, Article 61 (end-of-service gratuity), in force 31 July 2023. Repealed Royal Decree 35/2003 (old Labour Law), Article 39.
- Ministry of Labour, Oman. Clarification on the calculation of end-of-service gratuity, 23 October 2024 (reported by Muscat Daily and Times of Oman).
- Sultanate of Oman. Social Protection Law issued by Royal Decree 52/2023 (savings system for non-Omani workers, 9% of basic wage), as amended by Royal Decree 60/2025 (implementation deadline 19 July 2027). DLA Piper, Global Employment Latest Developments, 2025.