GulfDues / Oman gratuity calculator

Oman gratuity calculator

Your end-of-service gratuity under the 2023 Oman Labour Law: a month of basic wage for each year, with service before 26 July 2023 at the old rate.

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How it is worked out

The service is split at 26 July 2023, when the new Labour Law came in. Before it: half a month of basic wage a year for the first 3 years of service, then a month a year. From it: a month of basic wage a year. Part years count pro rata.

Example: basic OMR 500, joined 1 January 2021, leaving 31 December 2025. Before 26 July 2023: about 2.56 years × OMR 250 = OMR 641. From 26 July 2023: about 2.44 years × OMR 500 = OMR 1,219. Total about OMR 1,860.

Sources (checked October 2026): Oman Observer: Ministry clarifies end-of-service gratuity · PwC: key changes in the new Oman Labour Law · Middle East Briefing: gratuity in the GCC. Laws change - the ministry or a court gives the final figure.

Questions

How is gratuity calculated in Oman now?

Under the Labour Law issued by Royal Decree 53/2023, a worker who is not in the Social Protection savings scheme gets at least one month of the last basic wage for each year of service, and a share for part of a year.

What about service before the new law?

Service before 26 July 2023 is worked out at the old rate: 15 days of basic wage a year for the first 3 years, then one month a year. Service from 26 July 2023 is at one month a year. The Ministry of Labour confirmed this split in a circular.

Basic or total salary?

The last basic wage. Allowances are not included.

Does resigning reduce it?

The law does not cut gratuity for resigning. Your contract may give more, never less.

What is the Social Protection savings scheme?

Royal Decree 52/2023 moves end-of-service money into a savings fund for workers it covers. If you are in it, the fund pays you, not this formula.