How Oman gratuity is calculated
Oman's Labour Law, issued by Royal Decree 53/2023, came into force on 31 July 2023. For workers not covered by social insurance (most expatriates), Article 61 sets the gratuity at:
- At least one month's basic wage for each year of service from 31 July 2023.
- Part years paid in proportion.
- Based on your last basic wage.
Service before 31 July 2023 is worked out under the old Labour Law: 15 days' basic wage for each of the first three years and one month for each year after, and only for workers with at least a year of service.
Worked examples (basic OMR 400)
| Joined | Left | Gratuity |
|---|---|---|
| 1 Aug 2023 | 31 Jul 2026 | 3 × OMR 400 = OMR 1,200 |
| 1 Aug 2020 | 31 Jul 2026 | 3 old years × OMR 200 = OMR 600, plus 3 new years × OMR 400 = OMR 1,200. Total OMR 1,800 |
| 1 Aug 2016 | 31 Jul 2026 | Old: 3 × OMR 200 + 4 × OMR 400 = OMR 2,200, plus new: OMR 1,200. Total OMR 3,400 |
Resigning does not reduce the gratuity. Omani nationals are covered by the social insurance system instead.
A change is coming
The Social Protection Law plans a savings system for expatriate workers that will replace the lump-sum gratuity. Until it starts, employers pay the gratuity directly at the end of service. When it starts, employers will move the amount built up so far into the savings system or pay it to the worker.
More for Oman
Add leave and notice with the Oman final settlement calculator, or compare countries in the GCC gratuity comparison.
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