Oman Gratuity Calculator | Estimate End-of-Service Pay

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Table of Contents

• Oman gratuity calculator
• How gratuity is calculated in Oman for expats
• Gratuity calculation examples in Oman
• Which salary is used for gratuity in Oman?
• Does unpaid leave reduce gratuity?
• When can an employee lose gratuity in Oman?
• When must gratuity be paid?
• Do Omani employees get end-of-service gratuity?
• The new savings system for expats from 19 July 2027
• What employers in Oman should do before July 2027
• Gratuity in other GCC countries
• Get your expat gratuity liability calculated before the savings system starts
• FAQs on gratuity in Oman

Last updated: 9 November 2026 | Reviewed by: M. A. Farahat, ACPA, CFE, CICA

Short answer: Under Article 61 of Oman’s Labour Law (Royal Decree No. 53/2023), an expatriate employee in Oman earns end-of-service gratuity of at least one month’s basic salary for each year of service, with part years paid pro rata, based on the last basic salary. For service before the law took effect on 31 July 2023, the old rule applies: 15 days’ basic salary for each of the first three years, then one month per year. From 19 July 2027, employers will pay 9% of each non-Omani employee’s monthly basic salary into the Social Protection Fund’s savings system instead of building up gratuity.

The 2023 law only changed the first three years. Under both the old and new rules, every year after the third earns one month’s basic salary. So the split calculation only changes the result for employees whose first three years of service fell partly or fully before 31 July 2023.

Oman gratuity calculator

Enter the final monthly basic salary in OMR, the start date, the last working day and any unpaid leave days. The calculator splits the service at 31 July 2023, applies the old rule to the earlier period and the current rule to the later one, and adds the two.

The result is an estimate based on the Labour Law minimum. A contract or company policy that pays more overrides it, and the employer’s payroll and leave records decide the final figure.

How gratuity is calculated in Oman for expats

The formula for service after 31 July 2023:

Gratuity = last monthly basic salary × years of service

For a part year, divide the extra days by 365. Two years and six months is 2.5 years.

Gratuity calculation examples in Oman

Example 1: joined after the new law

An employee joins on 1 January 2024 and leaves on 30 June 2026 with a basic salary of OMR 650. Service is 2.5 years, so the gratuity is OMR 650 × 2.5 = OMR 1,625.

Example 2: joined two years before the new law

An employee joins on 31 July 2021 and leaves on 30 July 2026 with a basic salary of OMR 500.

Example 3: long service before the new law

An employee joins on 31 July 2017 and leaves on 30 July 2026 with a basic salary of OMR 800. The six years before the new law earn 3 × OMR 400 plus 3 × OMR 800 = OMR 3,600. The three years after earn 3 × OMR 800 = OMR 2,400. The total is OMR 6,000. If the whole nine years were calculated under the new rule, the figure would be OMR 7,200, which is why getting the split right matters to both sides.

Which salary is used for gratuity in Oman?

The last basic salary. The Labour Law defines the basic wage as the agreed cash pay plus periodic increments. Housing, transport, phone and other allowances are left out unless the contract or company policy includes them.

Does unpaid leave reduce gratuity?

Yes. Articles 80 and 83 of the Labour Law exclude unpaid leave for personal reasons and unpaid childcare leave from the service period used for gratuity. An employee with three years of service, 61 days of unpaid leave and a basic salary of OMR 600 is paid for 1,034 days instead of 1,095: OMR 600 × 1,034 ÷ 365 = OMR 1,699.73.

When can an employee lose gratuity in Oman?

Article 40 of the Labour Law lets an employer dismiss a worker without notice and without gratuity in nine cases. They include:

• using a false identity or forged documents to get the job
• an error causing serious financial loss to the employer, reported within 30 working days
• unexcused absence of more than 7 consecutive days or 10 separate days in a year, after a written warning
• disclosing the employer’s confidential information
• a final conviction for a felony or an offence involving dishonesty
• assaulting the employer, a manager or a coworker

Resignation on its own doesn’t cancel gratuity under the current law. An employee who resigns after giving the notice in the contract keeps the full amount.

When must gratuity be paid?

Article 91 of the Labour Law sets two deadlines. If the employer ends the contract, the wage and all dues are payable immediately. If the employee resigns, the employer has 7 days from the employee’s departure. Gratuity is paid with the rest of the final settlement: unpaid salary, accrued annual leave, and any overtime owed under Omani law.

Do Omani employees get end-of-service gratuity?

Article 61 applies to workers who aren’t covered by the Social Protection Law. Omani employees in the private sector are insured with the Social Protection Fund, which pays old-age pensions and other benefits funded by monthly contributions, so the Article 61 gratuity doesn’t apply to them. A contract or company policy can still give Omani staff an end-of-service payment.

The new savings system for expats from 19 July 2027

The Social Protection Law (Royal Decree No. 52/2023) replaces employer-paid gratuity for non-Omani workers with a savings system run by the Social Protection Fund (Article 137). Royal Decree No. 60/2025 moved the start to 19 July 2027.

A 9% monthly contribution adds up to 1.08 months’ basic salary per year (9% × 12), slightly more than the current one-month minimum, before investment returns. For an employee on OMR 500, the employer pays OMR 45 a month, or OMR 540 a year.

For service before 19 July 2027, Article 61 says the amount is calculated on the basic wage on the date it’s settled. An employer that pays out or transfers accrued gratuity in July 2027 locks in the July 2027 salary. One that waits until the employee leaves pays on the final salary.

What employers in Oman should do before July 2027

• Calculate accrued gratuity for every expatriate employee as of 18 July 2027, with the pre-2023 and post-2023 periods split.
• Decide, and budget for, whether to keep that liability until each employee leaves, pay it out, or transfer it to the Social Protection Fund.
• Check that basic salary is recorded separately from allowances in payroll, because both gratuity and the 9% contribution are calculated on basic salary only.
• Register expatriate employees with the Social Protection Fund and add the 9% contribution to the monthly payroll run.
• Review unpaid leave records, since they reduce the service period.

More Oman payroll guides: Payroll in Oman: what employers must get right | Overtime calculation in Oman

Gratuity in other GCC countries

Get your expat gratuity liability calculated before the savings system starts

Our Oman payroll team calculates gratuity for each employee with the 2023 split, models the cost of paying out, keeping or transferring accrued gratuity in July 2027, and sets up the 9% Social Protection Fund contribution in your monthly payroll. Send us your Oman headcount for a quote.

FAQs on gratuity in Oman

Sources:
Official Gazette: Royal Decree No. 53/2023 issuing the Labour Law |
Social Protection Fund: Royal Decree No. 52/2023 issuing the Social Protection Law |
Social Protection Fund: Laws and regulations |
Social Protection Fund: Coverage of non-Omani workers |
Oman News Agency: Royal Decree promulgates Labour Law

M. A. Farahat – ACPA, CFE, CICA

Research and Publications Department
Payroll Middle East
Tel: +971 4 2500251 | Email: sales@payrollmiddleeast.com