What is end of service gratuity in Oman?
End of service gratuity is a lump sum that your employer pays when your job in Oman ends. It is a reward for the years you gave to the company. It is not a gift and it is not a bonus. It is a legal right for expat workers in the private sector, and the employer cannot remove it through a clause in the contract.
Many people call it "gratuity", "end of service benefits" or simply "EOSB". In Oman the law uses the word gratuity. The amount depends on three things: how long you worked, your last basic wage, and which law covered each part of your service. The last point matters a lot in Oman because the rules changed in July 2023, and they will change again when the new savings system for expats begins.
The Oman end of service calculator above follows these rules for you. Below we explain each rule in plain English so you can check the result yourself and talk to your employer with confidence.
The legal basis in 2026
Labour Law, Royal Decree 53/2023
Oman's current Labour Law was issued by Royal Decree 53/2023. It was published in the Official Gazette at the end of July 2023 and the Ministry of Labour treats 31 July 2023 as the date it took effect. It replaced the old Labour Law of 2003 (Royal Decree 35/2003).
The key rule is Article 61. In simple words, it says:
- The employer must pay a gratuity to a worker who is not covered by the Social Protection Law when the job ends. In practice, this means expat workers.
- The gratuity must be not less than one month's basic wage for each year of service.
- Part of a year is paid in proportion to the time worked.
- The last basic wage is used for the calculation.
- Service that started before the new law came into force still counts.
What about years before 31 July 2023?
The old law gave a lower rate: 15 days' basic wage for each of the first three years, and one month's basic wage for each year after that. The Ministry of Labour has explained that for a worker who started under the old law and continued under the new one, the old rate covers the years before the new law, and the new rate covers the years after it. In a ministry example, an expat who joined on 1 August 2021 with a basic salary of OMR 500 earns half a basic salary (OMR 250) for each year up to 31 July 2023, and a full basic salary (OMR 500) for each year after.
In August 2026 the ministry issued another circular on the same topic. News reports summarised it as: contracts made under the old law follow the 15-day rate for the first three years, and contracts under the new law get at least one basic wage per year. Some readers took this to mean the old rate applies to the whole service for old contracts. Our calculator follows the split method in the ministry's own worked example, because it matches Article 61. If your employer reads the circular differently, ask the Ministry of Labour for a written answer.
Social Protection Law, Royal Decree 52/2023
The Social Protection Law was issued at the same time. Among many other changes, it creates a compulsory savings system for non-Omani workers. This system is meant to replace the lump-sum gratuity for future service. We explain the timing in the next section.
The new savings system: is it in force?
This is the question most expats in Oman ask in 2026. The short answer: no, not yet. As of October 2026 the gratuity under Article 61 of the Labour Law still applies to expats.
Here is the timeline as far as we could verify:
| Date | Event |
|---|---|
| 19 July 2023 | Social Protection Law (Royal Decree 52/2023) issued. The Fund was given three years to start the savings system for expats. |
| 31 July 2023 | New Labour Law in force. Gratuity rises to one basic wage per year. |
| 13 July 2025 | Royal Decree 60/2025 extends the deadline by one year, to four years from the law's issue. |
| By 19 July 2027 | Latest date for the savings system to begin. The Social Protection Fund board sets the exact date. |
What will the savings system look like? Based on official statements reported in the Omani press, the main features are:
- Employers pay 9% of the expat worker's monthly basic wage into a personal savings account at the Social Protection Fund.
- The worker does not pay anything from salary.
- The Fund promises a minimum yearly return of 2%, announced each year.
- The money is paid out when the worker leaves Oman, when the job ends and the worker does not start a new job within about three months, on permanent disability, or to heirs on death.
- The worker can choose a lump sum or instalments.
Note that 9% of basic wage for 12 months equals 1.08 months of basic wage per year. That is slightly more than the current one month per year, before any investment return.
What about the gratuity you earned before the savings system starts? Article 61 says the employer may either pay it to you or settle it into the savings system. Either way, it is calculated on your basic wage on the date of settlement. So your years before the start date are not lost.
Our calculator has an option to estimate the savings part. If you choose it and your last day is after the assumed start date, the tool counts gratuity up to the start date and then 9% of basic wage per month for the time after. It does not add investment returns, so the real balance should be a little higher. Treat this as a rough guide until the Fund publishes its final rules.
Who is eligible for gratuity in Oman?
You are entitled to end of service gratuity under Article 61 if:
- You work in Oman's private sector under the Labour Law.
- You are not an Omani national. Omani workers are covered by the Social Protection Fund's own schemes instead.
- Your job has ended, by resignation, end of a fixed-term contract, termination by the employer, or for another reason.
- You were not dismissed under Article 40 for one of the serious faults listed there.
There is no minimum service period in Article 61. Part years are paid pro rata. Some older guides say you need one full year before you earn anything. That was a common reading of the old law, but it is not part of Article 61 today.
Government employees, and workers covered by special laws, follow their own systems. The Labour Law does not apply to work governed by special laws or systems (Article 2). Domestic workers in Oman have their own regulations and contracts, so check the rules that apply to your contract.
How to calculate gratuity in Oman: step by step
You can work out your Oman gratuity by hand with four steps. The calculator does exactly the same thing.
Step 1: Find your last basic wage
Look at your contract or your latest payslip. Use only the basic wage. Do not add housing, transport, phone or other allowances unless your contract clearly makes them part of the basic wage.
Step 2: Split your service at 31 July 2023
Count how many years (with fractions) you worked before 1 August 2023, and how many after. If you joined after the new law began, all your service is new-law service.
Step 3: Apply the right rate to each part
Step 4: Add them together
Fractions of a year are counted by days. For example, 6 months is about 0.5 years. The calculator counts whole years from your start date and then adds the extra days divided by 365. Your last working day is counted as a day worked.
Rates at a glance
| Service period | Years 1–3 (from your start date) | Year 4 onwards |
|---|---|---|
| Before 31 July 2023 (old law) | 15 days' basic wage per year | 1 month's basic wage per year |
| From 31 July 2023 (Article 61) | 1 month's basic wage per year | 1 month's basic wage per year |
| After the savings system starts | Employer pays 9% of monthly basic wage to the Fund (no lump sum from employer for this period) | |
Worked examples
These examples use the same method as the calculator. You can type the numbers into the tool and you will get the same results.
Example 1: Joined in 2021, leaving in 2026
Ravi started on 1 August 2021. His last working day is 31 July 2026. His last basic salary is OMR 500.
- Old-law service: 1 August 2021 to 31 July 2023 = 2 years. Both years are within his first three years, so the rate is half a month: 2 × 0.5 × 500 = OMR 500.000.
- New-law service: 1 August 2023 to 31 July 2026 = 3 years at one month each: 3 × 500 = OMR 1,500.000.
- Total gratuity = OMR 2,000.000.
Example 2: Long service since 2018
Maria joined on 1 January 2018 and her last day is 31 December 2026. Her last basic salary is OMR 800.
- Old-law service: 1 January 2018 to 31 July 2023 = about 5.581 years. The first 3 years earn half a month each (1.5 months). The other 2.581 years earn a full month each. Total old-law months = 4.081. Amount: OMR 3,264.658.
- New-law service: about 3.419 years × 800 = OMR 2,735.342.
- Total gratuity = OMR 6,000.000 (9 years in all).
Notice that Maria's only "loss" from the old law is the half month in each of her first three years. After year three, the old and new rates are the same.
Example 3: Joined after the new law
Imran joined on 1 March 2024 and leaves on 31 August 2026. His basic salary is OMR 350.
- All service is under Article 61: about 2.504 years.
- Gratuity = 2.504 × 350 = OMR 876.438.
Example 4: Leaving after the savings system starts (estimate)
Grace joined on 1 January 2022 and expects to leave on 31 December 2028. Her basic salary is OMR 600. We assume the savings system starts on 19 July 2027, the legal deadline.
- Old-law service (1 January 2022 to 31 July 2023): about 1.581 years at half a month = OMR 474.247.
- New-law gratuity service (1 August 2023 to 18 July 2027): about 3.964 years at one month = OMR 2,378.630.
- Savings period (19 July 2027 to 31 December 2028): about 1.455 years × 12 × 9% × 600 = OMR 942.707 in employer contributions, before returns.
- Estimated total = OMR 3,795.584.
The first two lines (OMR 2,852.877) are the gratuity that the employer either pays to Grace or settles into the Fund. The third line comes from the Fund. If the Fund starts earlier than July 2027, the split will change.
Example 5: Dismissal under Article 40
If a worker is lawfully dismissed under Article 40, for example for forging documents to get the job, no gratuity is due. The calculator shows OMR 0.000 in this case. Other unpaid dues, such as salary for days worked, are still owed.
Special cases
Resignation vs termination
Under the new Labour Law, resignation does not reduce gratuity. This is different from Kuwait, where resignation can cut the amount (see our Kuwait Indemnity Calculator). In Oman you must still give proper notice under your contract and Article 38. If you leave without notice, the employer can deduct pay for the notice period, but it cannot cancel your gratuity for that reason alone.
If your employer broke the law, for example by not paying your salary, you may be able to leave without notice under Article 41 and keep your full rights.
Dismissal for serious fault (Article 40)
Article 40 lists the cases where an employer may dismiss a worker without notice and without gratuity. They include using a false identity or forged papers, a mistake that causes serious material loss (reported to the authorities within the deadline), repeated refusal to follow written safety rules after warning, unexcused absence of more than 7 days in a row or 10 separate days in a year after a written warning, disclosing company secrets, a final conviction for certain crimes, being drunk at work, assault, and a serious breach of contract duties. If you think your dismissal does not fit any of these cases, you can complain to the Ministry of Labour.
Unpaid leave and breaks in service
Long periods of unpaid leave may not count as service. Check your contract and company rules. If you left and were re-hired, ask your employer whether the service is treated as one period or two separate contracts.
Probation
Time on probation is part of your service. If you stay with the employer after probation, it counts toward your gratuity.
Company savings plans (Article 48)
Some companies run their own savings or provident plan. Article 48 allows such a plan to replace the legal gratuity only if it pays at least as much and has approval from the Ministry and the Fund. If you paid into the plan yourself, you keep your own share on top of the gratuity.
Omani workers
This calculator is for expats. Omani workers covered by the Social Protection Law have different end of service arrangements under the Fund.
Common mistakes
- Using gross salary. Oman gratuity is based on the basic wage. Using the total package will give a figure that is too high.
- Using one month per year for all years. If you joined before 31 July 2023, your first three years under the old law were at 15 days per year.
- Thinking the savings system has already started. As of October 2026 it has not. Your employer still owes you the gratuity directly.
- Thinking you need one full year. Article 61 pays fractions of a year.
- Assuming resignation cancels gratuity. It does not in Oman.
- Forgetting other dues. Gratuity is only one part of your final pay. Unused leave, salary for the last days and any unpaid overtime are separate.
How to claim your gratuity and what to do if it is unpaid
Article 91 of the Labour Law says the employer must pay the worker's wage and all dues immediately when the job ends. If the worker left the job on his own, the employer has up to seven days.
If your employer does not pay:
- Ask in writing. Send an email or letter to HR with your dates, basic salary and your own calculation. Keep a copy.
- Collect documents. Contract, payslips, resignation or termination letter, bank statements and ID.
- File a complaint with the Ministry of Labour. The ministry has asked workers to complain only through its official channels, mainly its online services, so that the complaint is registered and can be followed up. The ministry tries to settle the dispute first. If that fails, it refers the case to the labour court.
- Watch the time limits. If you were dismissed and want to challenge it, act quickly. Labour claims also have time limits, so do not wait months before you complain.
If you need help, your embassy's labour or community welfare section can often guide you through the process.
Practical tips
- Check that your basic wage is written correctly in your contract on the Ministry of Labour system. A low basic wage means a low gratuity.
- Keep your own record of your start date and any contract renewals.
- Before you resign, run the numbers with this calculator and with our other tools. For example, compare with the UAE Gratuity Calculator or the Saudi End of Service Calculator if you are thinking about a move.
- Follow news from the Social Protection Fund. When it announces the start date of the savings system, ask your employer how it will settle your old gratuity.
- If you also work in Bahrain or Qatar later, the rules are different. See our Bahrain Gratuity Calculator and Qatar Gratuity Calculator.
Frequently asked questions
How much gratuity do expats get in Oman?
For service from 31 July 2023, the Labour Law gives at least one month's basic wage for each year of service, with part years paid pro rata. For years worked before that date, the old rate of 15 days' basic wage per year for the first three years and one month per year after that is used.
Is the Oman savings system for expats in force now?
Not as of October 2026. Royal Decree 60/2025 moved the deadline to 19 July 2027, and the Social Protection Fund board must set the exact start date. Until then, the gratuity under Article 61 of the Labour Law still applies.
Is gratuity in Oman based on basic salary or gross salary?
It is based on the last basic wage. Housing, transport and other allowances are not included unless they are part of the basic wage written in your contract.
Do I lose my gratuity if I resign in Oman?
No. The new Labour Law does not cut gratuity for resignation. You should give the notice your contract and the law require, or the employer may deduct pay for the notice you did not serve.
Is there a minimum service period for gratuity in Oman?
Article 61 does not set a minimum. Part years are paid in proportion to the time worked, so even a short contract earns a small amount. Check the old-law years with your employer if your contract started before 31 July 2023.
When can an employer refuse to pay gratuity in Oman?
Only when the worker is dismissed under Article 40 of the Labour Law, which lists serious faults such as forgery, serious loss caused by the worker, long unexcused absence after a warning, or a serious breach of duties.
How soon must my employer pay my end of service in Oman?
Article 91 says all dues must be paid immediately when the job ends. If the worker left the job on his own, the employer has seven days to pay.
What happens to my old gratuity when the savings system starts?
Article 61 lets the employer either pay the gratuity earned before the start date to the worker or settle it into the savings system, calculated on the basic wage on the settlement date. Service after the start date is covered by monthly employer contributions instead.
How much will employers pay into the Oman savings system?
Official reports say employers will pay 9 percent of the expat worker's monthly basic wage, with a minimum yearly return of 2 percent announced by the Fund. Confirm the final rules with the Social Protection Fund when the system starts.
Where can I complain if my gratuity is not paid in Oman?
Submit a labour complaint to the Ministry of Labour through its official electronic channels. The ministry tries to settle the case and, if that fails, refers it to the labour court.
Disclaimer and sources
Disclaimer: This calculator and article give an estimate only. They are not legal advice. Rules on the savings system may change when the Social Protection Fund issues its decisions. Always confirm your figures with your employer, the Ministry of Labour or a qualified lawyer in Oman.
Sources / references: Oman Labour Law issued by Royal Decree 53/2023 (Articles 1, 38, 40, 41, 48, 61 and 91), the repealed Labour Law issued by Royal Decree 35/2003, the Social Protection Law issued by Royal Decree 52/2023, Royal Decree 60/2025 amending its timelines, and Ministry of Labour statements on gratuity calculation reported in the Oman Observer (2026). Official text: Royal Decree 53/2023 on decree.om.