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📆 Saturday, Rabiʻ II 8, 1448 AH — September 19, 2026

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

  1. Enter your basic monthly salary
  2. Enter your length of service (years and months)
  3. Select the reason for termination (employer termination, resignation, or contract end)
  4. 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

RuleOmanSaudi ArabiaUAE
RateFull month from year 1Half then full month21 then 30 days
On resignationFullReduced by tenureFull after 1 year
Maximum capNoneNone2 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?
No. Article 61 of Oman's Labour Law (Royal Decree 53/2023) sets no maximum cap or ceiling on end-of-service gratuity. An eligible worker earns one month's basic wage for every year of service — calculated on the last drawn basic salary, with partial years paid pro-rata — and this accrues for the entire length of service with no upper limit. The old law (Royal Decree 35/2003) carried no cap either.
What changed with the new Oman labor law 2023 regarding gratuity?
Under Royal Decree 53/2023, workers now receive one full month's basic salary per year of service from day one, replacing the old system of 15 days for the first 3 years. The minimum one-year service requirement was also eliminated.
Will a savings fund replace end-of-service gratuity for expats in Oman?
Yes, eventually. The Social Protection Law (Royal Decree 52/2023) introduces a savings scheme for expatriate workers — a monthly employer contribution of 9% of basic wage — scheduled to commence on 19 July 2027 after being postponed by Royal Decree 60/2025. Until then, the lump-sum gratuity under Article 61 remains payable.
How are partial years calculated under the new law?
Workers are entitled to pro-rata gratuity for partial years, even if they have not completed a full year of service. The gratuity is calculated proportionally based on the months of service completed.
Is there a difference in gratuity between Omani and expatriate workers?
The formula is unified: one month's basic salary per year of service. However, Article 61 applies to workers who are not beneficiaries of the Social Protection Law — in practice, Omani nationals are covered by social insurance through the Social Protection Fund, while end-of-service gratuity is paid to expatriate workers.
How is gratuity calculated for employees who started before the new law?
Transitional rules apply: service before July 2023 is calculated under the old formula (15 days for first 3 years, then 1 month), while service after July 2023 is calculated at 1 full month per year.
Is gratuity paid regardless of the reason for termination?
Yes. Full gratuity is paid regardless of the reason for termination, whether it is employer-initiated termination, resignation, or contract expiry.
What salary is used as the basis for gratuity calculation in Oman?
Gratuity is calculated based on the last basic salary at the time of termination. Other allowances are not included in the calculation.

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.

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