End of Service Calculator - Oman
Calculate your end of service gratuity per the new Oman Labor Law — Royal Decree 53/2023, Article 61
How to Use
- Enter your basic monthly salary
- Enter your length of service (years and months)
- Select the reason for termination (employer termination, resignation, or contract end)
- Press "Calculate" to see your end of service gratuity with a detailed breakdown
This tool is available for other countries
End-of-service gratuity in Oman (2026)
End-of-service gratuity for private-sector workers in Oman is governed by Article 61 of the new Labour Law (Royal Decree 53/2023, issued July 2023). Workers earn one full month (30 days) of basic pay for each year of service from the first year, based on the last basic salary, with fractions of a year pro-rated and no cap.
It is paid in full regardless of the reason for termination (resignation, dismissal, or contract expiry) — a change from the old law, which reduced gratuity on early resignation.
Transitional rule (before/after 31 July 2023)
Service before the law took effect (31 July 2023) is calculated under the old formula (RD 35/2003): 15 days per year for the first 3 years, then one full month. Service from 31 July 2023 onward accrues at one full month per year. The two periods are added together.
Omani nationals vs expatriates
Under the Social Protection Law (RD 52/2023), Omani nationals moved to a contributory social-insurance system instead of a lump-sum gratuity, so Article 61 gratuity now mainly concerns expatriate workers. A separate expat savings scheme (around 9% of basic pay) is due to launch by 19 July 2027 (postponed from 2026) and may shift future expat service from the lump sum to contributions — check the latest official guidance.
Oman vs other GCC countries
| Rule | Oman | Saudi Arabia | UAE |
|---|---|---|---|
| Rate | Full month from year 1 | Half then full month | 21 then 30 days |
| On resignation | Full | Reduced by tenure | Full after 1 year |
| Maximum cap | None | None | 2 years' pay |
Calculation Methodology
Wage used in the calculation
The calculator uses the monthly salary you enter as the calculation base. In some systems this may be basic wage only, while in others it may include actual wage or fixed allowances; enter the wage basis that matches your country and contract.
Service period conversion
The calculator converts years and months of service into a proportional period, then applies the days or months owed per year according to the country and termination reason.
Reason employment ended
The result changes for resignation, employer termination, or contract end. Some laws reduce or deny gratuity for certain service periods. Check the legal reference on the page for final treatment.
Practical Examples
End of service after 4 years — 600 OMR salary
Sarah earned a basic salary of 600 OMR and her service ended after 4 years. One month per year: 4 × (600 ÷ 30) × 30 = 2,400 OMR Gratuity = 2,400 OMR Paid in full regardless of termination reason.
Resignation after 8 years — 1,000 OMR salary
Mohammed earned a basic salary of 1,000 OMR and resigned after 8 years. One month per year: 8 × (1,000 ÷ 30) × 30 = 8,000 OMR Gratuity = 8,000 OMR Paid in full (no resignation reduction in Oman).
Frequently Asked Questions
Does Oman's end-of-service gratuity have a cap under Article 61?
What changed with the new Oman labor law 2023 regarding gratuity?
Will a savings fund replace end-of-service gratuity for expats in Oman?
How are partial years calculated under the new law?
Is there a difference in gratuity between Omani and expatriate workers?
How is gratuity calculated for employees who started before the new law?
Is gratuity paid regardless of the reason for termination?
What salary is used as the basis for gratuity calculation in Oman?
Legal References
Disclaimer: The results shown are approximate and for reference only, and do not constitute financial or legal advice. Actual amounts may vary based on additional factors. Please consult the relevant official authorities or a licensed financial advisor for accurate information specific to your situation.