Oman End of Service Calculator

Oman's Labour Law, issued by Royal Decree 53/2023, gives a non-Omani worker in the private sector an end-of-service gratuity when the contract ends, based on the last basic wage:

• Service from 31 July 2023: one month's basic wage (30 days) for each year of service (Article 61).
• Service before 31 July 2023: the old law (Royal Decree 35/2003) rates: 15 days' basic wage for each of the first three years, then one month's basic wage for each year after.
• Part years are paid in proportion to the time worked. There is no minimum length of service and no cap.
• Only the basic wage counts. Allowances such as housing and transport are left out.

The formula

daily basic wage = monthly basic ÷ 30
old years (before 31 July 2023) = 15 days × first 3 years + 30 days × years after
new years (from 31 July 2023) = 30 days × years
gratuity = old years + new years, using the last basic wage

Worked example

You worked from 1 January 2018 to 31 December 2025, which is 8 years, on a last basic salary of OMR 500 a month. The daily basic wage is 500 ÷ 30 = OMR 16.667. Service before 31 July 2023 is 5 years, 6 months and 30 days, or 5.5 + 30 ÷ 365 = 5.582192 years. The first 3 years give 3 × 15 × 500 ÷ 30 = OMR 750.000, and the other 2.582192 years give 2.582192 × 500 = OMR 1,291.096, so the old-law years come to OMR 2,041.096. The remaining 8 − 5.582192 = 2.417808 years from 31 July 2023 give 2.417808 × 500 = OMR 1,208.904. The gratuity is OMR 3,250.000, which is 8 × 500 − 3 × 250, or 6.5 months of basic wage. If your employer paid the new rate for all 8 years, it would be 8 × 500 = OMR 4,000.000.

Old law or new law for earlier years?

Reports of Ministry of Labour guidance say the new rate applies to service from 31 July 2023, and earlier service is paid at the old rates. Since the old law already paid a full month a year after the third year, the only difference is the first three years: if they were before 31 July 2023, they earn half a month each instead of a full month. Someone who joined after that date gets one month for every year. Some employers pay the new rate for all years; Advanced mode lets you pick that.

Resigning and dismissal

• Resigning: as far as we know, the new law does not reduce the gratuity when you resign, unlike Saudi Arabia or Kuwait. Check this with your employer or the Ministry of Labour.
• Serious misconduct: a worker dismissed without notice for serious misconduct can lose the gratuity.

The expat savings system from 19 July 2027

The Social Protection Fund's savings system for expats is due to replace the employer-paid gratuity from 19 July 2027 (moved from July 2026 by Royal Decree 60/2025). Employers will pay 9% of the monthly basic wage into the fund each month, with a promised return of at least 2% a year, and the worker collects the savings when leaving Oman. This calculator counts service only up to 18 July 2027 when you use dates; work after that is paid through the fund instead.

Omani nationals

Omani workers are covered by the Social Protection Fund (pensions and other benefits from monthly contributions), not by the Labour Law gratuity, so there is no gratuity sum to work out.

Your final settlement

• Unused annual leave is paid out when you leave. The law gives 30 days of paid leave a year.
• Notice pay. On a contract with no end date, notice is usually at least 30 days for monthly-paid workers. If you are not asked to work it, it is paid.
• Your employer may deduct loans or advances you still owe.

Rules checked on 11 October 2026 against Oman's Labour Law (Royal Decree 53/2023, Articles 1, 38, 61 and 78) and the Ministry of Labour's August 2026 circular on old-law contracts (as reported by the Oman Observer); the savings-system date is from Royal Decree 60/2025. This is an estimate for general information, not legal advice. Check with your employer or the Ministry of Labour (mol.gov.om) before relying on it.