Oman End of Service Gratuity Calculator

How is the gratuity calculated?

Article 61 of the Labour Law issued by Royal Decree 53/2023 requires the employer of a worker not covered by the Social Protection Law to pay, when employment ends, a gratuity of at least one basic salary for each year of service, with part years counted pro rata and the last basic salary as the base. Service that began before this law counts towards the period. The Ministry of Labour has explained that the years before the law are valued under the former law’s rule and the later years under the new law. The calculator goes through these steps and shows them in the breakdown table under the result.

1. Basic salary

The gratuity uses your last basic salary: the pay agreed in your contract plus the periodic increment. Allowances are left out even when they are paid every month. The same salary is used for both parts.

2. Length of service and the split

Service runs from your start date to your last working day, and that day counts. The new law was published in the Official Gazette on 30 July 2023 and took effect the next day, so the calculator splits your service at 31 July 2023. It then counts the days in each part and divides them by 365, because the law defines a year as 365 days.

3. The part before 31 July 2023

Article 39 of the former Law 35/2003 gave 15 days’ wage, that is half a basic salary, for each of the first three years and a month’s wage for each later year. The three years count from the day you started, so someone who started in 2015 was past them before 2023 and earns a full month for the later years.

4. The part from 31 July 2023

This part earns a full basic salary for each year, with no tiers and no cap. For example, a basic salary of OMR 800 from 1 January 2022 to 31 December 2025, ending in resignation:

• Earlier part: 576 days, so 800 × 1/2 × 576 ÷ 365 = OMR 631.233.
• Later part: 885 days, so 800 × 885 ÷ 365 = OMR 1,939.726.
• Total: OMR 2,570.959.

5. Reason for leaving

The full gratuity is paid when the employer ends the contract, when its term runs out, when you resign, when you leave under Article 41, and on inability to work or death. The only case that removes it is dismissal under Article 40.

6. Rounding

The Omani rial has 1,000 baisa, so the calculator rounds the final amount once, to three decimals, after adding the two parts at full precision. That is why the two parts shown on the result can differ from the total by one baisa.

Special cases

Service that began before 31 July 2023

The calculator splits your service on that date, as the Ministry of Labour explained in 2024 — the years before use the former law’s rule, the years after use the new law, and the two parts are added. In August 2026 the ministry issued a circular saying that for contracts concluded under the former law the gratuity is 15 days’ wage for each of the first three years and a month for each later year. Some employers read that as covering the whole service, which pays less when the pre-2023 part is shorter than three years. For a basic salary of OMR 800 from 1 January 2022 to 31 December 2025 the calculator gives 2,570.959, while that reading gives about 2,002. If you and your employer disagree, ask the Ministry of Labour.

Less than a year of service

The new law has no minimum service. If your service ends on or after 31 July 2023 you earn a gratuity for any length of service, even if it began before that date. Service that ended before it is valued entirely under the former law, which paid nothing below one year. A claim for a right that arose before the new law expires one year after the new law took effect (Article 9).

Resignation and notice

Resigning does not reduce the gratuity under either law. Article 38 does require the side ending an open-ended contract to give written notice of 30 days for monthly-paid workers and 15 days for others, unless the contract sets a longer period. The side that skips the notice owes the other its gross wage for the missing days, which may be deducted from your final dues.

Dismissal under Article 40

Article 40 lets the employer dismiss without notice or gratuity in nine cases, among them a false identity or forgery to get the job, a mistake causing serious financial loss, disclosing the business’s secrets, and unexcused absence of more than seven days in a row or ten separate days in a year. The worker can complain within 30 days of notice (Article 10). If the court finds the dismissal arbitrary, it orders reinstatement or compensation of 3 to 12 months’ gross wage, plus the gratuity (Article 11).

Leaving under Article 41

You may leave without notice and keep the full gratuity if the employer deceived you when contracting, did not pay your wage for more than two months in a row, failed its main obligations, assaulted you, or knew of a serious danger to your safety and did nothing about it. Keep proof of the reason and tell the employer in writing.

Unpaid leave

Special unpaid leave and unpaid childcare leave count as service but not towards the gratuity (Articles 80 and 83). Enter the number of days and the calculator takes them off the part from 31 July 2023 first, since those articles are new-law rules, and off the earlier part only if they are longer.

The savings system for non-Omanis

The Social Protection Law sets up a compulsory savings system in which the employer pays 9% of a non-Omani worker’s basic salary each month to the Social Protection Fund; it replaces the gratuity for service after it starts. The Fund’s board sets the start date, no later than 19 July 2027, and none had been announced when this page was last reviewed. The gratuity for service before the start stays with the employer, who may settle it to the worker or into the fund at the basic salary on the settlement date (Article 61).

Debts and deductions

When service ends, amounts owed to the government and debts proven in the employer’s favour are deducted from the gratuity (Article 96). The calculator shows the gratuity before any deduction, so ask for a written statement of deductions before you sign the final settlement.

Who is not covered

Article 61 is for workers not covered by the Social Protection Law, so Omani employees insured with the Fund are outside this calculator. If the employer runs a savings or supplementary scheme approved by the ministry and the Fund that replaces the gratuity, the worker gets the scheme amount when it equals or exceeds the gratuity, and the gratuity otherwise (Article 48). The Labour Law does not apply to jobs governed by their own laws.