Oman End of Service Calculator

Oman is the Gulf system with no minimum service, no resignation scale and no cap: under Article 61 of the Labour Law (Royal Decree 53/2023) you are owed at least one month of your last basic wage for every year of service, fractions pro rata from day one. Service before August 2023 is computed at the old law's rates, as the Ministry of Labour applies it — and the whole-service figure is always shown beside it. The savings system that will one day replace this gratuity does not start until 19 July 2027.

Your LAST basic wage as Article 1 defines it: the agreed contract cash wage plus the periodic increment only — housing, transport and other allowances belong to the "total wage" and stay out, unless your contract counts one of them as basic. If your basic was raised during service, the last basic governs every year, on both sides of the 2023 changeover.

Service start date
Last day of service (end date)

In Oman the reason does NOT change the amount — there is no resignation scale in this law at all. Only an Article 40 dismissal forfeits the gratuity itself; choosing a reason changes the guidance, not the maths (except Article 40).

Only the two leave types the law expressly excludes from the gratuity computation: special unpaid leave granted at your request (Article 80) and unpaid childcare leave (Article 83). These days are deducted from the end of your counted service; leave the field at zero if you took neither — ordinary unpaid absence does not belong here.

Service period
Daily basic wage
Changeover split
Statutory cap
Step-by-step breakdown

Indicative calculation, not legal advice. The final settlement depends on your contract and your employer's records; if your service includes a period before 31 July 2023 the headline follows the Ministry of Labour's announced split and the whole-service reading is shown beside it — read the July 2023 changeover section of the guide below before relying on either figure in a claim.

Last updated: 9 November 2026 — Labour Law promulgated by Royal Decree 53/2023 (Articles 1, 4, 9–11, 14, 37–43, 48, 61–63, 80–83, 91, 92, 96) as published by the Ministry of Labour; Social Protection Law 52/2023 (Articles 135–143) and Royal Decree 60/2025 postponing the savings system to 19 July 2027; Ministerial Decision 574/2025 for domestic workers.

What is the Oman end-of-service gratuity, and who does it cover?

The end-of-service gratuity is the amount a worker earns for his years of service, payable when the employment ends, and its basis is Article 61 of the Labour Law promulgated by Royal Decree 53/2023 (in force 31 July 2023). It covers workers "who do not benefit from the provisions of the Social Protection Law" — the statutory test is coverage, not nationality, though in practice it matches the non-Omani private-sector workforce. Three groups sit outside it, and the scope selector above routes each to its explainer: the Omani national (whose provision is the Social Protection Fund pension), domestic workers (regulated by Ministerial Decision 574/2025) and government staff (civil-service rules). A note for GCC nationals: your coverage usually runs through your home fund's insurance-extension arrangements — check your home fund's position.

And the starting point that surprises many: there is no minimum service. The gratuity is owed for fractions of a year in proportion to the period served, from the very first day — probation included (Article 37 caps probation at three months for monthly-paid workers and counts it in service once completed). The "you must complete one continuous year" rule printed by many sites is the repealed law's condition — it died on 31 July 2023 and governs no settlement today.

The formula, step by step — with a fully worked example

The modern formula is simple at its core: one month of the last basic wage for every year of service, fractions pro rata. Article 1 fixes the units: the year is 365 days and the month is 30 days — so the daily wage is the monthly basic ÷ 30, and each year of post-changeover service is worth exactly one monthly basic. The article's words "not less than" make that month a floor, not a ceiling: if your contract or your employer's policy grants more, the more favourable term applies (Article 4: any term breaching the law is void unless it is more favourable to the worker).

Worked example (a published one, at its own rates): last basic OMR 400, exactly two years of service from 1 August 2023 to 31 July 2025. Step one: daily wage = 400 ÷ 30 = OMR 13.333. Step two: the whole service is after the law took effect, so no transition split: 2 years × 30 wage-days = 60 days. Step three: gratuity = 60 × 13.333 = OMR 800.000. Run the same numbers in the calculator above and you will see the same breakdown. Had your service started before August 2023, the transition split in the next section would apply.

The July 2023 changeover — the Ministry split and the whole-service reading

Before 31 July 2023 the governing law was Labour Law 35/2003, whose Article 39 paid: 15 days' wage for each of the first three years of service and one month (30 days) for each following year, on the last basic wage — and no gratuity at all under one year. The 2023 law raised the rate to a full month per year and abolished the one-year bar. But when Article 61 added pre-commencement service into the service period, it said that service "counts within the service period considered in determining the period of the gratuity due" — without stating at which rate.

The Ministry of Labour's announced position — this page's primary calculation: service before 31 July 2023 is computed at the old law's rates, service after it at one month per year, all on the last basic wage. The Ministry's published example: a worker on OMR 500 basic who started 1 August 2021 has his pre-changeover period paid at OMR 250 per year (half a basic wage = the 15-day rate) and his post-changeover period at OMR 500 per year. Your position in the old law's two tiers is counted from your original start date, not from 2023: a worker hired in 2020 does not restart the 15-day band at the changeover. This is the figure an employer's settlement will most likely show, which is why it is the headline here.

The whole-service reading — and why it is always shown as a secondary line: Article 61's text fixes one rate — "not less than one basic wage for each year of his service" — and then folds pre-commencement service into the period. On the bare words, a worker whose service ends today is arguably owed the new rate on his whole service. Legal commentary (Al Naba) argues exactly this and attacks the Ministry's circular as contradicting the article's text; some rigorous calculators adopt the textual reading and decline any split. This page does not settle the dispute for or against you: it shows both numbers side by side — six years at a basic of OMR 900 (from January 2020) gives OMR 4,050.000 on the split and OMR 5,400.000 on the whole-service reading — so you know the size of what is argued about before any claim.

And our stated position on a point the sources do not settle: a short service straddling the changeover (say six months: three before August 2023, three after) — could the old law's one-year bar swallow it? This page's answer: eligibility is governed by the law in force at the ending — Article 61, which has no minimum — and the split sets rates only. So the six months are paid: OMR 62.500 for the pre-changeover part and OMR 125.000 for the later part, at a basic of OMR 500.

No minimum, no fractions, no cap — three ways Oman is not its neighbours

The commonest Oman gratuity errors are imported from neighbouring laws. First — no minimum service: the one-year condition was in the repealed Article 39; today's Article 61 pays for fractions of a year from day one. Second — no resignation fractions: Omani law — old and new — has never scaled the gratuity down for resigning; the third and two-thirds scales are Saudi and Kuwaiti in origin, and any site that docks your Omani gratuity for resigning before three years is applying another country's law. Third — no cap: no ceiling appears in Article 61 or elsewhere; long service on a high basic produces its full figure untrimmed (12 years at OMR 800 basic: OMR 8,400 on the Ministry split). Compare: the UAE caps at two years' wage, Kuwait at 18 months' wage, and Qatar — alone with Oman — has no cap.

Basic wage only — Article 1's definition

The gratuity stands on your last basic wage, which Article 1 (definition 17) defines as the cash consideration agreed in the contract plus the periodic increment — and nothing else. Allowances (housing, transport, food, phone) belong to the "total wage" (definition 18) and stay out, unless your contract itself counts one of them as part of the basic. If your basic was raised at any point in service, the last basic governs every year — including the pre-changeover segment, under both readings. And your decisive document in any dispute over the base is the service certificate (Article 62): free, on request, stating the start and end dates, the work performed, the wage and the other benefits — obtain it before you sign any release.

How service ends — the number changes in one case only

Because Article 61 has no scales, the ending reason changes the guidance, not the figure: resignation with Article 38 notice (30 days for monthly-paid workers, 15 for others) takes the gratuity in full. Employer termination on an Article 43 ground (reaching pensionable age, Omanisation replacement, failure to reach the required competence after warning and a six-month grace period, closure or downscaling, an economic reason) — full. Expiry or mutual agreement (Article 42(1)) — full. And leaving without notice on an Article 41 ground — the employer's fraud at contracting, wages unpaid for more than two consecutive months or other essential obligations unmet, an immoral act by the employer towards you, assault on you by the employer, his representative or a supervisor, or a grave safety/health danger he knows of and does not remedy — preserves your gratuity in express words, "retaining all his rights, including the end-of-service gratuity", after you notify the employer.

Leaving without notice and without an Article 41 ground does not reduce the gratuity either — but your exposure sits in a separate account: compensation to the other party equal to the wage for the notice period (or its unobserved part), computed on your last total wage (Article 38). A separate claim, not deducted here; the only set-off against it is the employer's right to deduct amounts proven against you at the end of service (Article 96). Death in service ends the contract (Article 42(3)) and the gratuity and all dues pass to those entitled through you, with a privilege over all the employer's debts except court-ordered maintenance (Article 92) — the Omani text has no court-deposit machinery of the Qatari kind, so do not import it. Incapacity or exhausted illness (Article 42(3)–(4)) keeps the gratuity in full.

Dismissal for cause — Article 40's nine grounds and their guardrails

The one case in which the gratuity itself is lost: dismissal under Article 40 — dismissal without prior notice and without end-of-service gratuity, lawful only if you: assumed a false identity or resorted to forgery to obtain the job; committed an error causing gross material loss to the employer (provided he notifies the competent authority within 30 working days of learning of it); breached the written safety instructions despite written warning where the breach would cause grave harm; were absent without acceptable excuse for more than 7 consecutive days, or 10 separate days in one year (after written warning); disclosed the establishment's secrets otherwise than as legally authorised; were finally convicted of a felony or a crime against honour or trust, or of a misdemeanour at the workplace; were found at work drunk or under the influence of a narcotic or psychotropic substance, or committed an act against public morals; assaulted the employer or his representative, a supervisor or a co-worker at the work site causing illness and incapacity; or committed a gross breach of your obligation to perform the agreed work.

And dismissal is not the last word: no penalty without written notification of the charges, a hearing of your statements and a recorded defence (Article 63), and you may complain to the competent authority within 30 days (Article 10). If a court finds your dismissal arbitrary, your gratuity is restored and joined by — reinstatement or compensation of 3 to 12 months of your last total wage — plus notice-period wage and insurance contributions to the final judgment (Article 11 expressly lists "the end-of-service gratuity legally due" among what is paid in addition). That is why this calculator presents the Article 40 state as a flag, not a verdict.

The savings system — honestly dated

The Social Protection Law (Royal Decree 52/2023) created, in its Articles 135–143, a defined-contribution savings system: compulsory for non-Omani workers up to the compulsory amount, replacing the employer-paid end-of-service gratuity (Article 137), financed at 9% of the monthly basic wage payable by the employer (Article 139(1)) — nothing is compulsorily deducted from the worker, and voluntary extra contributions are allowed from the employer, the worker or others. The transition settlement sits in Article 138: for service before contributions begin, the employer either pays the Labour-Law gratuity when the service ends, or settles it to the savings system or to the worker directly — valued at the basic wage on the settlement date (the last sentence of Article 61 mirrors this). The saver owns the contributions plus their investment returns, paid out on the end of the employment relationship (unless he takes another job within the regulation's period), to his heirs on death, or on permanent disability — as a lump sum or in instalments per the regulation. Operating detail was issued early by SPF Decision R/7/2023: register the worker within 30 days of his starting work, and pay contributions within the first 15 days of the following month.

But — and this is where many pages go wrong — the system has NOT started. It was due to begin by 19 July 2026 at the latest; Royal Decree 60/2025 (13 July 2025) postponed it by a full year to 19 July 2027. The position today (November 2026): no contributions are due, no registration duty has begun, and your employer still owes you the gratuity directly under Article 61 when your service ends. Proof the delay is real and not paper: the sick-leave and unusual-leave insurance branch for non-Omanis did start on 19 July 2026 on the same decree's timetable — the savings system was the piece deferred. That is why the calculator shows a dated status panel and no "savings calculator": fund returns and the final regulation cannot honestly be computed today. The "2% guaranteed return" claim circulating on some sites rests on a single secondary source with no published text behind it — do not build on it.

Omanis and the Social Protection Fund

Article 61's text excepts whoever "benefits from the provisions of the Social Protection Law" — and an Omani in the private sector is compulsorily insured in the old-age, disability and death branch (contributions payable since 1 January 2024). So an Omani's end of service is not an employer gratuity but an SPF pension: entitlement age 60, with early-retirement routes (including women at 55 without reduction in the published frames), on contributions of 11% of the wage from the employer and 7.5% from the worker. A pension value is a function of a complete contribution record — wages and years — not of two numbers typed here; that is why the scope selector shows an explainer rather than a calculator. The practical Labour-Law link: Article 43(1) makes reaching pensionable age a lawful employer ground to end the contract unless otherwise agreed — and at that point there is no "gratuity", because the pension system is the entitlement.

Getting paid — payment, set-off, the certificate and claiming

When is it paid? Article 91: the employer must pay the wage and all amounts due immediately (at once) when the employment relationship ends — the single exception being that if YOU left of your own accord, payment may be made within 7 days of your leaving. (Beware a common error: "Article 63, seven working days" — Article 63 governs disciplinary procedure, not payment.) Set-off: attachment or assignment of wages is capped at one quarter under Article 96, and at the end of service government dues and amounts proven against you to the employer are deducted from the gratuity and other entitlements — not his estimates. That is why this calculator has no "debts" field. Your untaken leave is a separate settlement line, not part of the gratuity: annual leave is 30 days on full (total) wage (Article 78), and at the end of service you are owed the total wage for your accrued balance (Article 81) — note the mirror image of Kuwait: there the gratuity is on the total wage and leave cash on basic; here it is exactly the reverse.

Your documents and your route: ask for the service certificate (Article 62) — free, and it states the two dates, the work and the wage. At final departure the employer must repatriate you to your country (or an agreed country) within 60 days of the contract's end and, on request, give you a clearance of obligations (Article 14); a worker suing for his dues may remain in Oman until the case is decided. And claiming (Article 9): start at the Ministry's competent settlement division (up to 30 days); if settlement fails, the division refers the dispute to the competent court within 7 days — and your right to claim lapses one year from the date the right fell due. That one year is the most practically important number on this page after the gratuity rates themselves.

Frequently asked questions

How is the Oman end-of-service gratuity calculated?

Per Article 61 of the Labour Law promulgated by Royal Decree 53/2023, on your LAST basic wage: at least one month's basic wage for every year of service, fractions of a year pro rata, with no minimum service and no cap. The basic wage (Article 1) is the contract cash wage plus the periodic increment only — allowances are part of the "total wage" and stay out. The daily wage is the monthly basic ÷ 30 (Article 1: a month is 30 days). Service before 31 July 2023 is computed at the old law's rates under the Ministry of Labour's clarified split — see the changeover question below.

I resigned — is my Oman gratuity reduced?

No — never. Omani labour law has no resignation scale in either the 2023 law or the repealed law before it: the gratuity is identical whether you resign, your employer terminates you, your term expires, or you agree the ending. The third and two-thirds scales you may know belong to other countries' laws (Saudi Arabia and Kuwait), not this one. The only case in which the gratuity itself is lost is dismissal on an Article 40 ground.

I worked less than a year — do I get anything?

Yes — you are entitled for fractions of the year in proportion to the period you served, from your first day. The old law (Article 39 of Law 35/2003) barred anyone under one year; that bar died with the old law on 31 July 2023, and Article 61 today grants pro-rata entitlement with no minimum service at all — even probation counts. Sites still printing the one-year rule as current law are quoting a repealed provision.

I started before July 2023 — how is my earlier service counted?

Article 61 says service begun before the law entered into force "counts within the service period" — but prints no transition formula, so two readings live. The Ministry of Labour's announced position (this page's primary calculation): service before 31 July 2023 is paid at the OLD law's rates — 15 days' wage per year for the first three years of your service, 30 days per year after — and service from 1 August 2023 at a full month per year, all on your last basic wage. The second reading applies one month per year to your whole service; this page always shows that figure as a secondary line beside the headline so neither number surprises you at settlement.

Has the Social Protection Fund savings system replaced the gratuity?

Not yet. The Social Protection Law (Royal Decree 52/2023, Articles 135–143) created a compulsory savings system for non-Omani workers that will replace the gratuity, but Royal Decree 60/2025 postponed its start to 19 July 2027. Until then Article 61 remains in force: your employer pays this gratuity directly when your service ends, and no savings contributions are deducted from you. When the system starts, your pre-start rights are settled under Article 138 of the Social Protection Law at the basic wage on the settlement date.

What will the savings system take from my pay when it starts?

Nothing from your pay. The system's financing (Article 139(1) of the Social Protection Law) is a contribution of 9% of your monthly basic wage payable by the EMPLOYER — a cost on the employer, not a deduction from the worker. Voluntary extra contributions may be made by the employer, by you, or by others; you own your balance plus investment returns, paid out when the employment relationship ends, to your heirs on death, or on permanent disability. The currently scheduled start is 19 July 2027.

I was dismissed for misconduct — have I lost my gratuity?

Only if your dismissal rests on one of Article 40's nine closed grounds (such as forgery to obtain the job, an error causing gross material loss, disclosing the establishment's secrets, unexcused absence over 7 consecutive or 10 separate days in a year, or a final conviction for a felony or a crime against honour or trust). An Article 40 dismissal is without notice and without gratuity — but it is not the last word: no penalty may be imposed without written notification, a hearing and a recorded defence (Article 63), and you may complain to the competent authority within 30 days (Article 10). That is why this calculator presents the Article 40 state as a flag, not a verdict.

Is there a maximum Oman gratuity?

No. The Labour Law sets no cap on the gratuity — not in Article 61 or anywhere else — unlike the UAE (a cap of two years' wage) and Kuwait (18 months' wage). Twelve years at a basic of OMR 800 yields OMR 8,400 on the Ministry split (OMR 9,600 on the whole-service reading) with nothing trimmed for a ceiling. And because Article 61 says "not less than" one month per year, your contract may grant more — the more favourable term is what applies.

When must my employer pay my dues?

Immediately. Article 91 obliges the employer to pay the wage and all amounts due at once when the employment relationship ends; the only allowance is that if YOU left of your own accord, payment may be made within 7 days of your leaving. Your dues carry a privilege over all the employer's debts except court-ordered maintenance (Article 92). If you dispute the amount, claims start at the Ministry of Labour's competent settlement division — and the right to claim lapses one year from the date the right fell due (Article 9), so do not delay.

I am Omani — why doesn't this calculator apply to me?

Because Article 61 covers workers "who do not benefit from the provisions of the Social Protection Law", and an Omani in the private sector is compulsorily insured in the Social Protection Fund's old-age, disability and death branch — so your end-of-service provision is the SPF PENSION, not an employer gratuity. The pension frame: entitlement age 60 (with early-retirement routes), and branch contributions of 11% from the employer and 7.5% from you on the monthly wage. Your employer may also end your contract when you reach pensionable age unless otherwise agreed (Article 43(1)).

My employer runs its own savings programme — do I get both?

Article 48 governs: if your employer runs a supplementary or savings programme whose rules state that his payments into it are in lieu of the end-of-service gratuity AND are equal to or greater than it, the programme amount is paid instead of the gratuity; if either condition fails, the gratuity remains due in full. If YOU contributed your own money to the programme, you keep both the gratuity and your contributions. These programmes need the prior approval of the Ministry of Labour and the Social Protection Fund — ask for the written programme rules before comparing.

Does unpaid leave reduce my gratuity?

Only two kinds do, by the law's express words: special unpaid leave granted at your own request (Article 80) and unpaid childcare leave of up to one year (Article 83) — both count within your general service period but are expressly "not counted" in the Article 61 gratuity computation, and you bear the full Social Protection contributions for them. Ordinary unpaid absence has no such exclusion in the text. That is why the calculator carries an optional days field for those two leave types only, defaulting to zero.

Legal notice: the content of this page and its calculator is for awareness and indicative calculation only. It is not legal advice and does not replace reviewing the text of the Labour Law promulgated by Royal Decree 53/2023 and its amendments, or consulting a legal specialist in special cases and disputes.

Related tools

Working in Qatar? Your tool is the Qatar End of Service Calculator, under the different rules of the Qatari Labour Law (on the last basic wage, with a guaranteed minimum of 21 days per year, no cap and no resignation fractions). Working in Kuwait? Yours is the Kuwait End of Service (Indemnity) Calculator, under radically different Private Sector Labour Law rules (computed there on the total wage, with surviving resignation fractions). Working in the United Arab Emirates? Yours is the UAE End of Service Calculator under the federal Labour Law (21/30 days, capped at two years' wage). Working in Saudi Arabia? Yours is the Saudi End of Service Calculator under the Saudi Labour Law. Working in Bahrain? Yours is the Bahrain End of Service Calculator under the Bahraini Labour Law (half a month per year for the first three years and a month after, on basic plus the social allowance, with the March 2024 split between employer and SIO). Also try: the date difference calculator to verify your service length in days with an exact breakdown, and the Hijri–Gregorian converter if your contract or service records are dated in Hijri.