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End-of-Service Benefit Calculator

Oman End-of-Service Gratuity Calculator

Free, accurate, and instant — based on Oman Royal Decree No. 53 of 2023 (Labour Law), Article 61

Oman's end-of-service system is changing: a mandatory savings scheme (SPF) for expatriate workers — deferred to mid-2027 by Royal Decree 60/2025 — may replace this lump-sum gratuity. This estimate reflects the law as currently in force (Art. 61) — re-verify closer to your actual leaving date.

Oman End-of-Service Gratuity Calculator

Based on Oman Royal Decree No. 53 of 2023 (Labour Law), Article 61

OMR

Your result will include

  • Total gratuity in OMR

    Instantly calculated, no sign-up

  • Year-by-year accrual table

    See exactly how gratuity builds over time

  • Law citation & legal notes

    Oman Royal Decree No. 53 of 2023 (Labour Law), Article 61

  • Downloadable PDF report

    Share or file with HR

Calculation is instant and private — nothing is sent to a server.

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How much gratuity do you get in Oman?

Under Oman’s new Labour Law (Royal Decree 53/2023, in force 1 August 2023), end-of-service gratuity is a flat one month’s basic wage for every year of service, from your first year. Service you completed before 1 August 2023 keeps the old schedule — 15 days’ wage per year for the first three years, then one month per year — and the two periods are added together into one payout. It is based on your last basic wage only, has no cap, is paid in full whether you resign or are terminated, and accrues from day one with no minimum service. A separate savings scheme (SPF) is due to replace this for expatriates from July 2027.

Wage base
Basic wage only
New rate (from Aug 2023)
1 month per year
Pre-Aug-2023 service
15 days/yr (first 3 yrs), then 1 month
Minimum service
None — accrues from day one
On resignation
Paid in full — no reduction
Maximum
No cap

Last reviewed: July 2026

What is end-of-service gratuity in Oman?

End-of-service gratuity is a lump sum your employer must pay when your employment ends in Oman. For Oman’s expatriate workforce it is the main statutory leaving entitlement, while Omani nationals are covered by the social-insurance / Social Protection Fund system rather than employer gratuity.

Since 1 August 2023, gratuity is governed by Oman Royal Decree No. 53 of 2023 (the new Labour Law), Article 61. The new law simplified and improved the benefit: a flat one month’s basic wage for every year of service, starting from year one — more generous than the previous schedule, which paid only 15 days a year for the first three years.

Because the law changed mid-career for many workers, service is split at the cut-off date: anything you completed before 1 August 2023 is calculated under the old schedule, and everything from that date onward under the new one-month rate. This calculator applies both correctly, uses your last basic wage, prorates any partial year, and adds no resignation reduction or cap — so you get the figure your employer should pay.

How Oman gratuity is calculated

Oman’s new rate is simple — one month per year — with an extra step only if your service began before 1 August 2023. Follow these steps, or just use the calculator above.

  1. 1

    Start from your last basic wage

    Use your final monthly basic wage. Allowances (housing, transport, etc.) are excluded — Article 61 uses the basic wage only.

  2. 2

    Work out your daily wage

    Daily wage = monthly basic wage ÷ 30. A full month of gratuity therefore equals one month’s basic wage.

  3. 3

    Apply one month per year for service from 1 August 2023

    For every year worked on or after 1 August 2023 you earn 30 days (one month) of basic wage: 30 × daily wage × those years.

  4. 4

    Apply the old schedule to service before 1 August 2023

    Years completed before the cut-off earn the old rate: 15 days per year for the first three years of service, then one month per year. Add this to the new-law amount.

  5. 5

    Prorate the partial year — no reduction, no cap

    Any part-year is paid in proportion at that year’s rate. There is no resignation reduction and no maximum.

Oman gratuity rate schedule (Article 61 + transitional)
Service periodGratuity earned
Each year from 1 Aug 20231 month’s (30 days’) basic wage
Pre-Aug-2023, years 1–315 days’ basic wage per year (old law)
Pre-Aug-2023, year 4 onward1 month’s basic wage per year (old law)
Overall capNo maximum

Basic wage only, daily wage = basic ÷ 30. No minimum service and no resignation reduction. Service is split at 1 August 2023: earlier years use the old schedule, later years the flat one-month rate — Article 61.

Oman gratuity calculation examples

Three worked examples using Article 61 (daily wage = basic ÷ 30). Your own figures will differ — run them in the calculator above.

  • 4 years, all under the new law

    • Basic wage: OMR 500 → daily wage = 500 ÷ 30 = OMR 16.67
    • Started after 1 Aug 2023, so 1 month per year
    • 30 days × 4 years = 120 days
    • 120 days × OMR 16.67 = OMR 2,000 (4 months)
    GratuityOMR 2,000

  • 8 years, straddling the law change

    • Basic wage: OMR 600 → daily wage = OMR 20
    • First 3 years (before Aug 2023): 15 × 3 = 45 days
    • Remaining 5 years: 30 × 5 = 150 days → 195 days total
    • 195 days × OMR 20 = OMR 3,900
    GratuityOMR 3,900

  • 3½ years, resignation (new law)

    • Basic wage: OMR 400 → daily wage = OMR 13.33
    • Full years: 30 × 3 = 90 days
    • Half-year prorated: ≈ 15 days
    • ≈ 105 days × OMR 13.33 ≈ OMR 1,400 — paid in full despite resigning
    Gratuity≈ OMR 1,400

Who is eligible for gratuity in Oman?

Gratuity applies to employees under the Labour Law. Unusually for the Gulf, there is no one-year qualifying period.

  • No minimum service period

    Article 61 grants gratuity “for the fractions of the year proportional to the period spent in service” — it accrues from your first day, so even a few months of service earn a proportional amount.

  • Expatriate (non-Omani) employees

    End-of-service gratuity is the leaving benefit for expatriate workers under the Labour Law. This is the group the calculator is built for.

  • Omani nationals

    Omani nationals are covered by the state social-insurance / Social Protection Fund scheme (with employer and employee contributions) rather than employer end-of-service gratuity.

  • Resignation and termination are equal

    Oman does not reduce gratuity for resignation. Whether you resign, are terminated, or your contract expires, the amount is the same.

  • Service before and after 1 August 2023

    If your service straddles the new law, your pre-cut-off years are calculated under the old schedule and your later years under the new one — both are added together.

  • Lawful summary dismissal

    An employee lawfully dismissed for one of the serious reasons listed in the Labour Law may lose entitlement to gratuity.

The law change, resignation, and what happens in 2027

The 2023 law change: Oman’s previous Labour Law paid only 15 days’ wage per year for the first three years of service (then one month per year). Royal Decree 53/2023 replaced this with a flat one month per year from year one — a real improvement for shorter-tenure employees. The change took effect on 1 August 2023.

How the transitional split works: you do not lose your earlier service, and it is not simply upgraded to the new rate either. The Ministry of Labour has clarified that service completed before 1 August 2023 is calculated under the old schedule, and service from that date onward under the new one-month rate; the two are added together into a single payout. In practice, only your first three years are affected, because the old law already paid one month per year from year four.

Resignation vs termination: the reason your employment ends does not change your gratuity in Oman. Resignation, termination, and contract expiry are all paid the same, and there is no minimum service — gratuity accrues proportionally from your first day.

The upcoming savings scheme (July 2027): under the Social Protection Law, a mandatory savings / provident fund (SPF) for expatriate workers — a defined-contribution scheme funded by monthly employer contributions of about 9% of basic wage — is set to replace employer end-of-service gratuity for non-Omanis. Royal Decree 60/2025 deferred its start to 19 July 2027. Until then, the Article 61 gratuity in this calculator applies in full. If your departure is near that date, treat the result as provisional and re-check closer to the time.

Common Oman gratuity mistakes

  • Using the old 15-days rule for all your service

    Since 1 August 2023 the rate is a full month per year from year one. Only pre-cut-off years (and only your first three of them) use the old 15-day rate.

  • Assuming all your years were upgraded to one month

    Service before 1 August 2023 keeps the old schedule — it is not retroactively recalculated at the new rate. Your years split at the cut-off date.

  • Using total salary instead of basic wage

    Gratuity is based on the last basic wage only. Housing, transport, and other allowances are excluded under Article 61.

  • Expecting a resignation reduction

    There is none in Oman. Resignation is paid the same as termination.

  • Thinking there is a one-year minimum

    There isn’t. Gratuity accrues proportionally from your first day, so partial service still earns a proportional amount.

  • Ignoring the 2027 savings-scheme change

    For expatriates, the SPF savings scheme is due to replace employer gratuity from 19 July 2027 — check your position if you are leaving around then.

Tips for employees in Oman

  • Check your contract for your basic wage — that, not your total package, is what gratuity is based on.
  • Know your exact start date: if it is before 1 August 2023, your first years use the old schedule.
  • Keep copies of your contract, joining date, and last working day so your service is counted correctly.
  • If you are an expatriate leaving on or after 19 July 2027, confirm whether the savings scheme (SPF) applies to your service.
  • If your final settlement looks wrong, you can raise a complaint with the Ministry of Labour.

Frequently asked questions

How is gratuity calculated in Oman under the new labour law?

Under Royal Decree 53/2023, Article 61, gratuity is one month’s basic wage for every year of service, from year one, based on your last basic wage. Service completed before 1 August 2023 uses the old schedule — 15 days per year for the first three years, then one month — and both are added together.

What changed in Oman’s gratuity law in 2023?

The old Labour Law paid 15 days’ wage per year for the first three years of service, then one month per year. From 1 August 2023, Royal Decree 53/2023 pays a flat one month per year from year one — a more generous rate, especially for shorter service.

How is gratuity calculated for service before and after August 2023?

Service is split at 1 August 2023. Years completed before that date use the old schedule (15 days per year for the first three years, then one month); years from that date use the flat one-month rate. The Ministry of Labour confirmed the two periods are added into a single payout.

Is Oman gratuity based on basic salary or total salary?

On the last basic wage only. Allowances such as housing and transport are excluded under Article 61.

Do I get gratuity if I resign in Oman?

Yes. Oman does not reduce gratuity for resignation — resignation, termination, and contract expiry are all paid the same amount.

Is there a minimum service period for gratuity in Oman?

No. Article 61 grants gratuity proportionally from your first day, so even a few months of service earn a proportional amount.

Is there a maximum gratuity in Oman?

No. Omani labour law does not cap the total end-of-service gratuity.

Is Oman’s gratuity being replaced by a savings scheme?

For expatriate workers, yes — a mandatory Social Protection Fund (SPF) savings scheme is due to replace employer gratuity. Royal Decree 60/2025 deferred its start to 19 July 2027, and until then the Article 61 gratuity applies in full.