Oman's Labour Law, issued by Royal Decree 53/2023, came into force on 31 July 2023 and changed how end of service gratuity is worked out for expatriate workers.
The new rule
For workers not covered by social insurance, Article 61 gives at least one month's last basic wage for each year of service, with part years paid in proportion.
Service before 31 July 2023
Years worked before the new law are worked out under the old law: 15 days' basic wage for each of the first three years, and one month for each year after.
Example
Basic OMR 500. Joined 1 August 2019, left 31 July 2026. Old-law service: 4 years (3 × OMR 250 + 1 × OMR 500 = OMR 1,250). New-law service: 3 years (3 × OMR 500 = OMR 1,500). Total about OMR 2,750.
Resignation
Resigning does not reduce the gratuity in Oman.
Leave and notice
Annual leave is at least 30 days a year on gross wage, and an unused balance is paid on gross wage when you leave. Notice is at least 30 days for monthly-paid workers. The Oman final settlement calculator adds these to your gratuity.
The savings system
The Social Protection Law plans a savings system for expatriates that will replace the lump-sum gratuity. Until it starts, employers pay the gratuity directly.
For the gratuity on its own, use the Oman gratuity calculator.
Sources
- Oman Labour Law, Royal Decree 53/2023
- Old Labour Law, Royal Decree 35/2003, for service before 31 July 2023
- Oman Ministry of Labour
Want the exact figure for your case?
Open the Oman gratuity calculator