How to calculate gratuity in Oman

Last reviewed: 13 October 2026

End of service gratuity is the amount your employer pays when your employment ends. In Oman, the rules are in Article 61 of the Labour Law (Royal Decree 53/2023). This guide explains the rules in plain steps and shows three worked examples.

Who receives gratuity

The Article 61 gratuity applies to workers who are not covered by the Social Protection Law. In practice, this means mainly expatriate (non-Omani) workers. Omani workers who are insured with the Social Protection Fund receive their benefits through the Fund, not as an employer gratuity.

The rules in four steps

1. Find your basic wage. Use your last basic monthly wage. Do not include housing, transport or other allowances.
2. Split your service at 31 July 2023. The new Labour Law applies from this date. Service before it uses the previous law. Service from it uses the new law.
3. Apply the previous law rates to service before 31 July 2023: 15 days' basic wage (half a month) per year for the first 3 years, then 30 days' basic wage (one month) per year.
4. Apply the new law rate to service from 31 July 2023: at least one full basic wage per year. Partial years are paid pro rata.

Add the amounts together. The Ministry of Labour has confirmed that the last basic wage is the basis for the calculation.

Worked examples

The figures below come from this site's calculator. The calculator counts service day by day, so small differences of a few baisa are normal.

Example 1: new law only

Start date 1 January 2024, last working day 31 December 2025, basic wage OMR 600. All service is under the new law.

• 2 years × OMR 600 = OMR 1,200.000

Example 2: service under both laws

Start date 1 August 2021, last working day 31 July 2025, basic wage OMR 500. Total service is 4 years.

• Previous law: 1.997 years × OMR 250 (half a month) = OMR 499.315
• New law: 2.003 years × OMR 500 = OMR 1,001.370
• Total: OMR 1,500.685

Example 3: long service that started under the previous law

Start date 1 January 2015, last working day 31 December 2025, basic wage OMR 1,000. Total service is 11 years.

• Previous law, first 3 years: 3 × OMR 500 = OMR 1,500.000
• Previous law, next 5.578 years: 5.578 × OMR 1,000 = OMR 5,578.082
• New law: 2.422 years × OMR 1,000 = OMR 2,421.918
• Total: OMR 9,500.000

Points to check

• Service under one year: under the previous law, service of less than one year did not qualify. Under the new law, partial years are paid pro rata.
• Other final settlement items: your final settlement can also include other amounts, such as unpaid salary. These are separate from gratuity. Ask your employer for a written breakdown.
• Savings system: a 9% savings system will replace the gratuity for non-Omani workers. Gratuity for service before the start date is still owed. See the savings system guide.
• Unpaid gratuity: if your employer does not pay, you can file a labour complaint with the Ministry of Labour.

This guide is for general information only and is not legal or financial advice. Rules can change, and the official law always prevails. Confirm your entitlement with your employer, the Ministry of Labour or a qualified lawyer before you rely on it. We accept no responsibility for any decision or loss based on this content. See the full disclaimer. Sources: Labour Law (Royal Decree 53/2023, Article 61), Ministry of Labour clarification on gratuity calculation, Social Protection Law (Royal Decree 52/2023), Royal Decree 60/2025.