Oman Final Settlement Calculator
Add up every component of your end-of-service payout, each on the wage base its own article requires, per Oman Royal Decree No. 53 of 2023 (Labour Law), Articles 61, 78 & 91
Final settlement calculator
Based on Oman Royal Decree No. 53 of 2023 (Labour Law), Articles 61, 78 & 91
Quick answer
Your final settlement in Oman is your end-of-service gratuity, plus the cash value of any unused annual leave, plus pay in lieu of notice your employer did not let you serve, plus any salary still owed, less lawful deductions such as an outstanding advance. The catch is that these components do not share a wage base: gratuity is calculated on your basic wage (Article 61), unused leave on your gross wage (Articles 78 and 81), and notice pay and outstanding salary on your full wage. Article 91 requires the employer to pay all of it immediately when the employment relationship ends.
At a glance
- Gratuity base
- Basic wage (Art. 61)
- Unused leave base
- Gross wage (Art. 78 & 81)
- Notice & unpaid salary
- Full wage
- Minimum service
- None — accrues from day one
- Payment deadline
- Immediately on ending (Art. 91)
- Law
- Royal Decree 53/2023
What goes into an Omani final settlement
A settlement is not one calculation. It is four separate entitlements that happen to be paid at the same time, each with its own governing article, and treating them as a single sum of “monthly salary times years” is where most disputes start.
The calculator above runs each component through the same engine that powers the standalone Oman calculators, so the gratuity figure here is identical to the one on the Oman gratuity page and the leave figure matches the leave salary page. Nothing is approximated to make the components fit together.
| Component | Wage base | Article |
|---|---|---|
| End-of-service gratuity | Basic wage only | Art. 61 |
| Unused annual leave | Gross wage (basic + allowances) | Art. 78 & 81 |
| Pay in lieu of notice | Full wage | Art. 38 |
| Outstanding salary | Full wage | Art. 91 |
| Deductions (advances, loans) | Subtracted from the total | — |
Oman Labour Law, Royal Decree 53/2023. Daily rates divide the relevant monthly wage by 30.
Why Oman uses three different wage bases
This is the single most valuable thing to understand about an Omani settlement, and it is why a generic Gulf calculator will give you the wrong number.
Article 61 ties the gratuity to “the basic wage for each year of his service”. Allowances are excluded, so a worker on a package that is heavily weighted towards housing and transport earns a smaller gratuity than their total pay suggests.
Annual leave runs the other way. Article 78 grants leave “with a gross wage” and entitles you to the gross wage for the balance outstanding when service ends. Article 81 does mention the basic wage, but only for an in-service buy-back of days you agree in writing not to take. A settlement is the Article 78 case, so unused leave is encashed on the gross wage.
Notice pay and outstanding salary are ordinary wage obligations rather than statutory awards, so they run on the full wage including allowances. The practical effect is that the same allowance raises three of the four components and leaves the largest one untouched.
One more wrinkle applies to the gratuity if any of your service predates 1 August 2023: those earlier years are attributed to the old schedule, which paid 15 days a year for the first three years. The calculator applies that split automatically and flags it in the result, so a long-tenure settlement will not simply be one month per year across the board.
When your settlement must be paid
Article 91 is unambiguous: the employer pays the wage and all amounts due “immediately upon the end of the employment relationship”. There is one exception, and it runs against the worker rather than for them: where the worker abandons the job unilaterally, the employer has seven days.
That seven-day window is widely quoted as if it were the general rule. It is not. If you worked your notice and left properly, the deadline is immediate, and a payroll department telling you to wait a week is describing the exception, not your case.
What this calculator does not include
Unpaid overtime is genuinely part of what you are owed, but it cannot be derived from a joining date and a salary: it depends on how many hours you worked and whether each fell on an ordinary day, a night shift or a rest day or holiday. Work that figure out separately and add it to the total here.
Repatriation air fare, any end-of-service benefit under a contract more generous than the statutory minimum, and compensation for arbitrary dismissal are also outside the statutory settlement components and outside this tool.
How to calculate your final settlement in Oman
- 1
Enter your dates and wage
Joining date, last working day, monthly basic salary and your fixed monthly allowances.
- 2
Add your leave position
Enter the annual-leave days you already took. The balance is encashed on the gross wage.
- 3
Add notice and unpaid salary
Enter notice days you were not allowed to serve, and any days worked but unpaid.
- 4
Subtract what you owe
Enter salary advances or loans to be recovered, then read the itemised breakdown.
Worked example
3 years from Sept 2023, OMR 900 basic + OMR 300 allowances, terminated
- Gratuity: one month's basic per year, 3 × 900 = OMR 2,700 (Art. 61, basic only)
- Leave accrued 90 days, 70 taken, so 20 unused: (900 + 300) ÷ 30 = OMR 40/day × 20 = OMR 800 (gross, Art. 78)
- Notice not served, 30 days: 40 × 30 = OMR 1,200 (full wage, Art. 38)
- Outstanding salary, 10 days: 40 × 10 = OMR 400
- Gross settlement OMR 5,100, less an outstanding advance of OMR 500
Frequently asked questions
What is included in a final settlement in Oman?
End-of-service gratuity, the cash value of unused annual leave, pay in lieu of any notice period you were not allowed to serve, and any salary still owed for days you worked. Lawful deductions such as a salary advance are subtracted. Unpaid overtime is also owed but has to be calculated separately from your hours.
Is the settlement calculated on basic salary or total salary in Oman?
Both, depending on the component. Gratuity uses the basic wage alone under Article 61. Unused annual leave uses the gross wage under Article 78. Notice pay and outstanding salary use the full wage. This is why adding everything up on one figure gives the wrong answer.
How long does my employer have to pay my final settlement in Oman?
Immediately when the employment relationship ends, under Article 91. The seven-day period that circulates widely applies only where the worker abandoned the job unilaterally. If you left properly, immediate payment is the standard, not seven days.
Do I get a settlement if I worked less than a year in Oman?
Yes. Article 61 grants gratuity for fractions of a year in proportion to service, with no minimum qualifying period, so it accrues from your first day. Accrued annual leave and any unpaid salary are owed regardless of length of service. This is a genuine difference from Qatar, which requires one completed year before any gratuity is due.
Does resigning reduce my final settlement in Oman?
It does not reduce the gratuity. Oman has no resignation tiers, so the Article 61 award is the same whether you resign, are terminated, or your contract expires. Resigning can still change the notice component: if you leave without serving your notice, your employer may be owed pay in lieu rather than you.
Is unused annual leave paid on basic or gross wage in Oman?
On the gross wage when your service ends. Article 78 entitles you to the gross wage for your outstanding leave balance. The basic-wage rate in Article 81 covers a different situation, an in-service buy-back of days you agree in writing not to take, and it should not be applied to an end-of-service balance.
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