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Oman Gratuity: Old Law and New Law Explained

Oman changed its labour law in 2023. If you started work before the change, your gratuity has two parts.

The new rule

Under Article 61 of the Labour Law (Royal Decree 53/2023), gratuity is not less than one basic wage for each year of service, with part-years in proportion. It is based on your final basic wage. The law came into force on 31 July 2023. Article 61 applies to workers who are not covered by the Social Protection Law, mainly expatriates. Omani nationals under the Social Protection Law follow that law instead.

The old rule

Before that, gratuity was 15 days of basic wage for each of the first 3 years, then 30 days for each year after.

Service across both

The Ministry of Labour has said that service before the new law follows the old rule, and service after follows the new rule. The law also says service that began before it came into force still counts. Press reports of the Ministry's example count the old 3 years from your original start date, which is how this calculator works. The Ministry decides in unusual cases.

Example

Basic wage OMR 450. You started on 31 July 2020 and leave on 31 July 2025.

Part Calculation Amount
31 July 2020 to 31 July 2023 (old rule, 3 years) 3 × 15 days × OMR 15 a day OMR 675.000
31 July 2023 to 31 July 2025 (new rule, 2 years) 2 × OMR 450 OMR 900.000
Total OMR 1,575.000

The Oman gratuity calculator does this split for you.

Things to know

  • Special unpaid leave is not counted as service. Subtract those days from your dates if they apply.
  • Your last basic wage is used for both parts, not allowances.
  • These are minimums. Your contract may give more.
  • Ask the Ministry of Labour if your case is unusual.

See how Oman compares in end of service gratuity compared.

Try it yourself Oman gratuity calculator Enter your wage and dates. We split your service for you. Open the calculator →

Sources

This article is for education and is not financial, tax or legal advice. Figures are checked against the sources above and may change. Read the full disclaimer.