Oman Gratuity Calculator

End-of-service gratuity in Oman is generally calculated using the employee’s final basic salary and the completed period of service. Under the current Oman Labour Law, workers who are not covered by the Social Protection Law may be entitled to gratuity of not less than one basic wage for each year of service, with fractions of a year calculated proportionately.

For employees whose service started before the 2023 labour law change and continued after it, the calculation may need to be split. The earlier period is commonly calculated using the previous method of 15 days’ basic salary for each year during the first three years and 30 days’ basic salary for each year after that. The period after the new law is generally calculated at one month’s basic salary for each year of service.

This calculator estimates both portions where relevant and combines them into one indicative gratuity amount. The result may differ if the employee is covered by social protection rules, a savings scheme, a more favourable contract, unpaid leave exclusions, settlement deductions or other company-specific arrangements.

Employers managing final settlements should keep payroll records, joining dates, salary changes and leave history properly documented. Our payroll services in Oman support businesses with salary processing, employee records and end-of-service calculations.

Payroll Middle East helps employers manage payroll administration across GCC markets with organised records and practical payroll support.