End-of-Service Gratuity in Oman: How It Is Calculated
How gratuity works for expatriate employees in Oman today, the split at 31 July 2023, a worked example, and what changes when the savings system starts on 19 July 2027.
If you work in Oman and are not covered by the Social Protection Law's pension system, your employer owes you an end-of-service gratuity when your job ends. Today, that is at least one basic wage for each year of service, based on your last basic wage.
This rule comes from Article 61 of the Labour Law, Royal Decree 53/2023, in force since 31 July 2023. It stays in place until the new savings system starts.
Two periods, two rules
If you worked before 31 July 2023, your service may be counted in two parts.
| Service period | Rate | |---|---| | Up to 30 July 2023 (old law) | 15 days' wage per year for the first three years, then one month's wage per year after that | | From 31 July 2023 (current law) | At least one basic wage per year |
A worked example
This is the example published by the Oman Observer. You start on 1 August 2021 on a basic wage of RO 500.
- 1 August 2021 to 31 July 2023: two years at half a basic wage, so RO 250 per year, or RO 500.
- Each year after that: RO 500 per year.
If you left on 31 July 2026, that adds three more years at RO 500, or RO 1,500, for a total of RO 2,000.
Points that often cause problems
- Probation counts. A completed probation period counts as service.
- Part-years. Reporting on Article 61 says fractions of a year are paid in proportion. A Ministry circular reported in August 2026 refers to completed years, so check if this affects you.
- Continuing contracts. The August 2026 circular describes the rule by when the contract was concluded, while earlier reporting splits service at 31 July 2023. If you have a contract from before that date, ask the Ministry of Labour how it treats yours.
- Minimum service. We did not find a minimum length of service for gratuity in the sources we read.
What changes on 19 July 2027
A savings system for non-Omani workers is due to replace gratuity from 19 July 2027, as reported by the Oman Observer in November 2026. Employers will pay 9% of basic wage each month. Read how it works in the provident fund explained.
This is general information, not legal advice. For your own case, ask the Ministry of Labour or a lawyer.
Moving to Oman for work? Start with our guide to moving.
Frequently asked questions
How much is gratuity in Oman now?
Under the Labour Law in force since 31 July 2023, at least one basic wage for each year of service, based on your last basic wage. Service before that date follows the older rule.
Is gratuity based on my total salary?
No. It is based on your last basic wage. The law defines basic wage as the agreed wage plus periodic allowance, so check your contract for how yours is set.
Do part-years count?
The Labour Law text and reporting on it say fractions of a year are paid in proportion. A 2026 Ministry circular as reported speaks of completed years, so ask the Ministry if a part-year matters in your case.
Will gratuity end for expatriates?
It is due to be replaced from 19 July 2027 by a savings system, funded by a monthly employer contribution of 9% of basic wage. Until then the gratuity rule continues.