🇴🇲 Oman · Updated for 2026 labour law

End of Service Benefit Calculator for Oman

Calculate your Oman end of service gratuity under the new Labour Law, Royal Decree 53 of 2023. Service from August 2023 accrues one full month of basic salary per year, while earlier service uses the previous rate. The tool splits the two periods for you.

Reviewed by a GCC labour specialist Based on official law Instant and free

Omani End of Service Calculator

Oman Labour Law, Royal Decree 53 of 2023, Article 61

OMR
Use your last basic salary. Allowances are excluded from the Oman gratuity.
The reason can change your award, from nothing to the full amount.

The basics

What is end of service benefit in Oman?

In Oman, expatriate workers receive an end of service gratuity when their employment ends, paid by the employer under the Labour Law issued by Royal Decree 53 of 2023. It is a statutory right based on your last basic salary and your length of service.

The new law raised the rate for service from August 2023 onward, so if your job spans that change, part of your gratuity is worked out under the old rate and part under the new one. This split is where many older calculators go wrong, and it is the first thing to get right when you check your figure.

  • One full month of basic salary per year from August 2023
  • Old rate applies to service before that date
  • Based on your last basic salary, allowances excluded
  • Applies to expatriate workers
Your gratuity, in short
1 month of basic pay per year
  • Royal Decree 53 of 2023, Article 61
  • Service is split at 1 August 2023
  • Resignation does not reduce the amount

The formula

How the Oman gratuity is calculated

The rate depends on when you earned each part of your service.

2023+

Service from August 2023

Each year of service from 1 August 2023 earns one full month of your basic salary.

1 month of basic salary per year
Pre

Service before August 2023

Earlier service uses the old rate: 15 days per year for the first three years, then one month per year.

15 days, then 1 month per year

If you started after August 2023, the calculation is simply one month of basic salary per year. If you started earlier, the tool applies each rate to the right stretch of time and adds them.

Worth knowing

Who is covered, and a savings system on the way

This gratuity applies to expatriate workers. Omani nationals build their benefits under the Social Protection Law instead, through pension and social insurance, so the figures here are for foreign employees settling their end of service with an employer.

Oman is also introducing a compulsory savings system for expatriate workers under the Social Protection Law. Once it is active, employers pay contributions into a funded account, and future benefits build up there rather than as a single lump sum at the end. Service earned before the savings system starts is still settled under the gratuity rules used by this calculator, and we update the page as the system rolls out.

Reason for leaving

How the reason for leaving changes your gratuity

Full gratuity

Termination, resignation or expiry

Ending by the employer, resigning, or reaching the end of a fixed term all pay the full gratuity. Resignation does not reduce it in Oman.

Split by date

Service across the 2023 change

Where your service spans 1 August 2023, the old and new rates each apply to their period, and the tool adds the two parts together.

Forfeited

Dismissal under Article 40

A lawful dismissal for gross misconduct under Article 40 removes the gratuity, where the employer proves the cause.

Know your rights

Your gratuity is a legal right in Oman

Under the Labour Law, your employer must pay your end of service gratuity and final dues when your contract ends. It is not discretionary, and a settlement that ignores the split between the old and new rates falls short of the law. Knowing the correct figure first protects what you are owed.

If the gratuity is withheld or looks wrong, you can raise the matter with the Ministry of Labour, which handles labour complaints and refers unresolved disputes to the courts. Where a dismissal is found to be without valid cause, the law provides compensation in addition to the gratuity you are due. Keep your employment contract, your payslips and any resignation or termination letter to support your case.

Every figure here is tied to the law and shown as a full breakdown, so you can compare the result with your settlement and raise any difference with confidence.

Simple to use

Work out your Omani end of service in four steps

Enter your basic salary

Use your last basic salary, the figure that the Oman Labour Law 2023 bases the calculation on.

Add your dates

Enter your first and last working day. The tool measures your service to the exact day.

Choose the reason

Select how the job ended, since this can raise or remove part of the amount.

Read the breakdown

See your total plus a line by line breakdown and the exact rule that produced it.

Why trust this tool

Built for accuracy, not guesswork

End of service in Oman is a your money topic, so every figure here is tied to the law and shown in full.

Reviewed by a specialist

Formulas and legal references are checked by a GCC labour and HR specialist.

Tied to official law

The Oman Labour Law 2023 is the source, with links to the Ministry of Labour and the official decree so you can verify it.

Full breakdown

You see how the figure is built, not just a single number, so you can check it.

Kept up to date

We revisit the rules when the law changes, so the calculation stays current.

Private by design

Your salary and dates stay in your browser. Nothing you enter is sent or stored.

Free and instant

No sign up and no fees. Get your result the moment you enter your details.

Worked example

A real example for Oman

How the numbers come together for a typical seven year service, ended by the employer.

An employee on a OMR 500.000 monthly basic salary who worked from January 2018 to December 2024, about seven years, receives the following under Oman Labour Law, Royal Decree 53 of 2023, Article 61.

Part of the calculationAmount
Service before Aug 2023, first 3 years at 15 days per yearOMR 750.000
Service before Aug 2023, beyond 3 years at one month per yearOMR 1,289.870
Service from Aug 2023 at one month basic salary per yearOMR 710.470
Estimated totalOMR 2,750.340

Enter your own wage and dates in the calculator above for a figure based on your service.

Frequently asked questions

How is end of service calculated in Oman under the new law?

For service from 1 August 2023 you earn one full month of basic salary for each year. Service completed before that date uses the old rate of 15 days per year for the first three years, then one month per year.

Does the Oman gratuity use basic salary or total pay?

It uses the last basic salary. Allowances are not included in the calculation.

Does resignation reduce my Oman gratuity?

No. Resignation does not reduce the gratuity. Entitlement can be affected only where dismissal follows a serious cause listed in the law.

Who does the Oman end of service benefit apply to?

This gratuity applies to expatriate workers. Omani nationals accrue their benefits under the Social Protection Law instead.

Is Oman moving to a savings system for gratuity?

Yes. A compulsory savings system for expatriate workers is being introduced. Once it is active, future benefits are paid into a funded account rather than as a single lump sum, while earlier service is still settled under gratuity rules.

AA
Reviewed by Dr. Ahmad Al-Juhani
GCC Labour Law and Immigration Consultant

More than four decades advising employers and workers on labour law, payroll, end of service settlements and residency and visa procedures across Saudi Arabia, the UAE, Qatar, Kuwait, Oman and Bahrain since 1979. Read full profile.

Last reviewed: July 2026