The rule in Article 61
The Labour Law issued by Royal Decree No. 53/2023 requires the employer to pay an end-of-service gratuity of not less than one month’s basic wage for each year of service to workers who are not covered by the Social Protection Law – in practice, non-Omani workers. Fractions of a year are paid in proportion, and the last basic wage is the basis for the calculation.
Allowances such as housing and transport are excluded unless your contract says otherwise.
Daily wage: OMR 13.333 (monthly ÷ 30)
- 2 yrs × 30 days/yrOMR 800.000
- New law (from 31 Jul 2023)OMR 800.000
- Estimated entitlementOMR 800.000
What the old law gave
Under the repealed Labour Law (Royal Decree No. 35/2003), the gratuity was 15 days’ basic wage for each of the first three years and one month’s basic wage for each year after that. For short-service expatriates, the new rule is therefore worth up to twice as much.
| Old law (Article 39) | New law (Article 61) | |
|---|---|---|
| Years 1–3 | 15 days per year | 1 month per year |
| Year 4 onwards | 1 month per year | 1 month per year |
| Wage used | Last basic wage | Last basic wage |
If you started before the new law
Service before the new law took effect is calculated under the old rules, and service after it under the new rule. Our calculator uses 31 July 2023 as the changeover date and applies the old tiers to earlier years, counting your position in the tiers from your original start date. The last basic wage is used for the whole period.
Daily wage: OMR 30.000 (monthly ÷ 30)
- 3 yrs × 15 days/yrOMR 1,350.000
- 0.58 yrs × 30 days/yrOMR 520.274
- 2.42 yrs × 30 days/yrOMR 2,179.726
- Old law (before 31 Jul 2023)OMR 1,870.274
- New law (from 31 Jul 2023)OMR 2,179.726
- Estimated entitlementOMR 4,050.000
Confirm the exact effective date with the Ministry of Labour if your start date is close to the changeover.
The planned savings scheme
The Social Protection Law (Royal Decree No. 52/2023) provides for a savings scheme for expatriate workers that will replace the lump-sum gratuity. Royal Decree No. 60/2025 postponed its start to 19 July 2027, when employers are due to contribute 9% of the basic wage each month. Until then, employers must pay the gratuity under Article 61 at the end of service.
Domestic workers
Before 2025, Oman did not guarantee end-of-service for domestic workers. The Regulation Governing Domestic Workers and Their Equivalents (Ministerial Decision No. 574/2025) now gives half a month’s wage for each year of service when total service is at least two years, with dues payable within days of the worker leaving the employer.
Daily wage: OMR 5.000 (monthly ÷ 30)
- 3 yrs × 15 days/yrOMR 225.000
- Estimated entitlementOMR 225.000
Omani nationals and government employees
Omani workers are covered by the Social Protection Fund, which provides pension benefits instead of a gratuity. Non-Omanis employed by government bodies follow civil-service rules and their contracts.
Before you leave: checklist
- Check your start date against the changeover date – it decides how much of your service uses the old tiers.
- Make sure the basic wage used is your latest one.
- Unused leave and the last month’s salary are separate from the gratuity.
- Keep copies of your contract and payslips in case of a dispute with the employer.
Calculate your Oman end-of-service →
Questions
How much is end-of-service in Oman for expats?
Under the 2023 law, at least one month’s basic wage for each year of service, with part years in proportion.
Has the expat savings scheme replaced gratuity yet?
Not until it is launched. Until then, employers pay the gratuity under Article 61.