Oman Gratuity Calculator 2026

Calculate your end-of-service benefit under Article 61 of the new Oman Labour Law.
Gratuity (مكافأة نهاية الخدمة), or end-of-service benefit, is the lump sum your employer owes you when your employment in Oman ends. This free Oman gratuity calculator applies Royal Decree 53/2023 to your basic wage and service dates — and correctly splits service that spans the July 2023 law change.

Estimate only — your final settlement may differ. See how the calculation works below.

Quick Answer

The 2023 Change Doubled Most Gratuity Payments

This is the single most important thing on this page, and most online calculators have not caught up.
Under the old law (Royal Decree 35/2003), gratuity was:

• 15 days’ wage for each of the first three years
• One month’s wage for each year after that

Under the new law (Royal Decree 53/2023), in force since 31 July 2023, the Ministry of Labour has confirmed that gratuity is calculated at not less than one basic wage for each completed year of service, using your last basic wage as the basis.

For anyone in their first three years, that is double what the old formula paid.

If a calculator shows you 15 days for your early years and your service ran past July 2023, it is short-changing you.

If Your Service Spans July 2023, It Is Split

You do not simply pick one law. The Ministry of Labour confirmed in an October 2024 circular that service either side of 31 July 2023 is calculated under the law in force at the time, and the two amounts are added together.

Worked example — the Ministry’s own:

An employee on OMR 500 basic wage, employed from 1 August 2021 to 31 July 2025:

Service that began before the new law still counts in full — it is simply valued at the older rate for that portion.

How to Use This Calculator

Worker type — expatriate or Omani national. This matters because gratuity under Article 61 applies to workers not covered by the Social Protection Law.
Joining date — your first working day with this employer. The calculator uses this to work out how much of your service falls before and after 31 July 2023.
Last working date — your final day of service, including any notice period you serve.
Basic monthly salary — your last basic wage in OMR, not your total package. Housing, transport, bonuses, commission and overtime are excluded.
Labour law version — leave this on the current setting, which handles the split automatically. Only switch to the old law if you are checking a settlement that closed before 31 July 2023.
Contract type and separation method — these appear for consistency across the site, but neither changes your Oman figure. Oman does not reduce gratuity for resignation, and fixed-term and open-ended contracts are treated the same way.

Working in another Gulf country?

How to Calculate Gratuity in Oman (Article 61)

For service from 31 July 2023 onwards:
Gratuity = Last Basic Wage × Years of Service
For service before 31 July 2023:
Daily wage = Basic wage ÷ 30 First 3 years = 15 days × daily wage × years Years 4 onward = 30 days × daily wage × years

Part years are paid in proportion. Article 61 entitles you to gratuity for fractions of a year proportionate to your period of service. Five years and six months is 5.5 years, not 5.
Your last basic wage is the basis. Not an average, not your starting salary. A pay rise shortly before you leave applies across your whole service period.
There is no maximum cap. Unlike the UAE, which caps gratuity at two years’ basic salary, Oman sets no ceiling.

Oman Gratuity Calculation Examples

All amounts based on last basic wage.

OMR 600 basic · 2 years · all service after July 2023
600 × 2 = OMR 1,200
(Under the old formula this would have been OMR 600.)
OMR 800 basic · 4 years · all service after July 2023
800 × 4 = OMR 3,200
OMR 1,000 basic · 7 years · all service after July 2023
1,000 × 7 = OMR 7,000
OMR 700 basic · 5 years 6 months
700 × 5.5 = OMR 3,850

Split example — OMR 1,000 basic · Aug 2018 to Jul 2026

Who Qualifies for Gratuity in Oman

Article 61 gratuity is payable to workers who are not beneficiaries of the Social Protection Law.
Expatriate employees are the main group entitled to the lump-sum gratuity.
Omani nationals are covered by the Social Protection Fund under Royal Decree 52/2023, which provides social insurance rather than an employer-paid gratuity. If you are Omani, check your record with the Fund — Article 61 gratuity applies only to service not covered by that system.
The same law applies across the Sultanate — Muscat, Salalah, Sohar, Nizwa, Sur and the free zones. Where you work does not change the calculation.

Does Resigning Reduce Your Gratuity?

No. Oman does not reduce gratuity for resignation the way Saudi Arabia does.

Whether you resign or your contract ends, the entitlement is calculated the same way. Only your service period and last basic wage matter.

What If You Have Worked Less Than a Year?

Be careful here — the position is not settled.
Under the old law, a full year of continuous service was required before any gratuity was payable. Article 61 of the new law refers to gratuity “for fractions of the year proportionate to the period of service” without restating a one-year condition, and several legal commentaries read this as removing the qualifying period. Others still describe gratuity as arising after one year.
Our calculator will show you the pro-rata figure so you know what is at stake, but confirm your entitlement with the Ministry of Labour before relying on it if your service is under twelve months.
We would rather tell you the question is open than give you a confident answer that costs you money either way.

What Counts as Your Basic Wage

Included: basic wage only, as stated in your employment contract.
Excluded: housing allowance, transport allowance, performance bonuses, sales commission, overtime and other variable payments.
Because many packages in Oman are weighted towards allowances, the gratuity figure is often lower than employees expect. On an OMR 1,200 package with OMR 700 basic, your gratuity is built on 700.

When Must Your Employer Pay?

Your end-of-service dues form part of your final settlement and are payable when the employment relationship ends.
Repatriation is a separate obligation. Your employer must return a non-Omani worker to their home country, or another agreed country, within a maximum of 60 days after the contract ends. You may also request a written release from any liability towards the employer on leaving.
Settle before you leave the country. Pursuing an unpaid settlement from abroad is considerably harder than resolving it while you are still in Oman.

The Savings Scheme Coming in July 2027

Oman is moving away from the lump-sum gratuity altogether.
The Social Protection Law introduced a funded Provident Scheme designed to replace end-of-service gratuity for non-Omani employees, with a mandatory monthly contribution of 9% of basic salary. Once implemented, all non-Omani employees must be enrolled.
Royal Decree 60/2025 pushed the start date back to 19 July 2027, a year later than originally planned.
What this means for you now: until that date, Article 61 gratuity is what you are owed. Do not let an employer tell you the savings system has already replaced it.

When Gratuity Can Be Lost

An employee dismissed for gross misconduct under the Labour Law’s dismissal provisions may lose the entitlement.
Outside those defined circumstances, gratuity is a statutory right. It is not discretionary, and it cannot be withheld as a bargaining position during your exit.
Damage claims are separate. If your employer alleges you caused financial loss, that is a civil matter. It does not entitle them to deduct from your gratuity without proper legal process.

Common Mistakes

Using the old 15-day formula. The most expensive error on this page. If your service ran past July 2023, part or all of it accrues at one month per year.
Assuming you must pick one law. Service spanning July 2023 is split, not assigned to whichever law you prefer.
Using your total package instead of basic wage. Allowances are excluded.
Rounding part years down. Fractions are paid in proportion.
Assuming resignation cuts the amount. It does not in Oman.
Believing the savings scheme has already started. It begins 19 July 2027.
Assuming there is a cap. There is none.

If Your Employer Will Not Pay

1. Request the settlement in writing. Ask for an itemised statement showing the basic wage used, service dates, how the pre- and post-July-2023 periods were split, and every deduction.
2. Put your objection in writing. State your own calculation and cite Article 61 of Royal Decree 53/2023. Keep the email thread.
3. Gather your documents. Employment contract and renewals, resident card, salary certificate, recent payslips, bank statements showing salary transfers, and your resignation or termination letter.
4. Contact the Ministry of Labour. Complaints go through the Ministry’s Labour Care Department, which can be reached on 80077000. The Ministry can hold up cancellation of a work permit until outstanding dues are settled — which is significant leverage.
5. Escalate to the Labour Court if the matter is not resolved at the Ministry stage.
Documentation decides these cases. A worker with a contract, payslips and a written objection is in a far stronger position than one relying on recollection.

Oman Gratuity Calculator FAQs

How is gratuity calculated in Oman in 2026?

One month’s basic wage for every year of service, based on your last basic wage, under Article 61 of Royal Decree 53/2023. Service before 31 July 2023 is calculated under the previous formula and added on.

Is it still 15 days for the first three years?

Only for service before 31 July 2023. From that date, every year accrues one month’s basic wage.

What if I joined before the new law?

Your service is split. The period up to 31 July 2023 uses the old formula, and the period after uses the new one. Both amounts are added together.

Is gratuity calculated on basic salary or total salary?

Basic wage only. Housing, transport, bonuses, commission and overtime are excluded.

Do I get gratuity if I resign?

Yes. Oman does not reduce gratuity for resignation.

Is there a maximum limit on Oman gratuity?

No. Oman sets no cap.

Do part years count?

Yes. Article 61 pays fractions of a year in proportion to service.

What if I have worked less than one year?

The position is not settled — see the section above. Confirm with the Ministry of Labour before relying on any figure.

Do Omani nationals receive gratuity?

Omani nationals are covered by the Social Protection Fund rather than the employer-paid gratuity. Check your record with the Fund.

Is gratuity taxable in Oman?

There is no personal income tax on employment income in Oman.

Has the savings scheme replaced gratuity?

Not yet. Royal Decree 60/2025 set the start date at 19 July 2027. Until then Article 61 gratuity applies.

Can my employer refuse to pay?

Only where you were dismissed for gross misconduct under the Labour Law. Otherwise gratuity is a statutory entitlement.

How long does my employer have to repatriate me?

A maximum of 60 days after the contract ends, for non-Omani workers.

Does contract type affect my gratuity?

No. Fixed-term and open-ended contracts are treated the same way.

Last updated: August 2026
Sources: Oman Labour Law (Royal Decree 53/2023), Article 61 · Royal Decree 35/2003 (repealed) · Social Protection Law (Royal Decree 52/2023) · Royal Decree 60/2025 · Ministry of Labour circular on end-of-service gratuity, October 2024

Written and maintained by Farhan — About

Disclaimer: This calculator provides an estimate for planning purposes and is not legal advice. Your final settlement depends on your contract, your service record and how the July 2023 transition applies to you. For a binding figure, contact the Ministry of Labour on 80077000 or an Oman-licensed legal professional.