Question 1

What is end of service gratuity in Oman?

Accepted Answer

End of service gratuity in Oman is a mandatory payment made by employers to employees upon termination of their employment contract. It's calculated based on the employee's basic salary and years of service.

Question 2

How is gratuity calculated for Omani workers?

Accepted Answer

For Omani workers, gratuity is calculated at a minimum of one basic salary per year of service. This is based on the employee's last basic wage, and partial years are calculated proportionally.

Question 3

How is gratuity calculated for expatriate workers?

Accepted Answer

For expatriate workers, the calculation depends on when they worked. Before July 31, 2023: 15 days' basic salary per year for the first 3 years, then 30 days per year after that. After July 31, 2023: one full basic salary per year of service.

Question 4

What is the new savings system in Oman?

Accepted Answer

The new savings system, set to be implemented by July 2026, will replace the current end-of-service gratuity system. It requires employers to contribute 9% of the expatriate employee's monthly basic wage, with a minimum savings amount of 100 OMR and a guaranteed minimum return on investment of 2% per year.

Question 5

Are partial years included in gratuity calculations?

Accepted Answer

Yes, partial years are included in gratuity calculations. The amount is calculated proportionally based on the actual period of service, including incomplete years.

Oman Gratuity Calculator

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New Labor Law Rules (July 31, 2023)

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