Skip to main content
Mukafi

Oman Leave Salary & Encashment Calculator

Work out the value of your unused annual leave — instantly, per Oman Royal Decree No. 53 of 2023 (Labour Law), Articles 78 & 81

Leave salary calculator

Based on Oman Royal Decree No. 53 of 2023 (Labour Law), Articles 78 & 81

OMR
OMR

Included in the encashment where the country pays leave on the full wage.

Subtracted from your accrued entitlement to find unused days.

Enter your details and press Calculate to see your result.

Quick answer

In Oman, unused annual leave is paid out on your gross (comprehensive) wage — basic salary plus fixed allowances: encashment = (gross monthly wage ÷ 30) × unused leave days. Article 81 of the Labour Law (Royal Decree 53/2023) entitles you to that gross wage for whatever balance is left when your service ends. This is where most Omani final settlements go wrong: leave salary is paid on the gross wage, while end-of-service gratuity is calculated on the basic wage only. Two different figures on the same payslip.

At a glance

Formula
(gross monthly wage ÷ 30) × unused days
Wage base
Gross wage — basic + allowances
Paid when
Service ends, on the unused balance
Law
Royal Decree 53/2023, Arts. 78 & 81

What "leave salary" means in Oman

"Leave salary" is the pay attached to your annual leave. Most people calculating it want the cash value of leave they did not take, paid out when their job ends — leave encashment.

Under the 2023 Labour Law, annual leave in Oman is paid on the comprehensive (gross) wage, so basic salary plus fixed allowances are both included. This is a key difference from the end-of-service gratuity, which Oman restricts to the basic wage. When you leave with leave still owing, that balance is settled on the gross wage.

When your balance is paid out

  • •Any unused balance is payable in cash when your service ends, on the gross wage (Art. 81).
  • •The six-month rule restricts when you may take leave, not when it accrues, so a worker who resigns at five months still has a payable balance.
  • •A balance withheld in the interest of work still stands and remains payable.
  • •Your day count builds at 2.5 days per completed month; the Oman annual leave entitlement calculator works that figure out on its own.

For the day count itself, use the Oman annual leave entitlement calculator

How leave encashment is calculated

  1. 1

    Find your accrued leave

    Multiply 2.5 by your completed months of service.

  2. 2

    Subtract leave already taken

    Deduct the annual-leave days you have used to get your unused balance.

  3. 3

    Work out the daily wage

    Divide your gross monthly wage (basic + allowances) by 30.

  4. 4

    Multiply

    Unused days × daily gross wage = your leave encashment.

Worked examples

OMR 500 basic + 100 allowances, 2 years, 10 days taken

  • Accrued: 2.5 × 24 months = 60 days
  • Unused: 60 − 10 = 50 days
  • Daily wage: (500 + 100) ÷ 30 = OMR 20
  • 50 × 20 = OMR 1,000
Leave encashmentOMR 1,000

OMR 800 gross, 4 years, 0 days taken

  • Accrued: 2.5 × 48 months = 120 days
  • Daily wage: 800 ÷ 30 = OMR 26.67
  • 120 × 26.67 = OMR 3,200
Leave encashmentOMR 3,200

Frequently asked questions

Is leave salary calculated on basic or gross wage in Oman?

On the gross (comprehensive) wage — basic salary plus fixed allowances. Art. 78 sets annual leave at 30 days on the gross wage, and Art. 81 entitles you to that gross wage for the balance outstanding when your service ends. The basic wage applies to two different things: the end-of-service gratuity, and an in-service buy-back of untaken days agreed in writing.

Why is my leave salary higher than my gratuity for the same period?

Because they use different wage bases. Leave salary is paid on the gross wage (basic plus fixed allowances), while end-of-service gratuity is calculated on the basic wage alone. On the same final settlement, the same months of service produce two different daily rates.

How is unused leave paid when I leave a job in Oman?

Your unused annual-leave balance is multiplied by your daily gross wage (gross ÷ 30) and paid as part of your final settlement, whether you resign or your contract ends.

Do I get leave salary if I resign in Oman?

Yes. Payment for accrued but unused annual leave is due whether you resign or are terminated.

Can my employer pay me for leave instead of letting me take it?

An in-service buy-back of untaken days is possible where it is agreed in writing, but it is paid on the basic wage, not the gross wage used for the balance owed when your service ends. Taking the leave, or carrying it forward, is usually worth more.

Need help managing EOSB for your team?

Get a free HR software recommendation from our partners.

No spam. Unsubscribe any time.

Related calculators

Related reading