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Oman End of Service Gratuity Calculator

One full month of basic salary per year of service from 31 July 2023 onwards. Service before that date is calculated under the old tiered formula. Both portions sum to the final payout.

Last verified: 2026-06

Basic salary only. Allowances are excluded under Article 61.

Split calculation at 31 July 2023

Royal Decree 53/2023 introduced a new flat formula of one month of basic per year. The old tiered formula (half month for the first three years, full month thereafter) still governs any service before 31 July 2023. The calculator splits your tenure on that date and sums both portions.

Estimated gratuity payout

OMR 2,472.450

Total tenure: 6.44 years

Old law portion (3.58 yr)OMR 1,039.185
tiered 0.5 mo / 1 mo bands
New law portion (2.87 yr)OMR 1,433.265
flat 1 month basic / year
TotalOMR 2,472.450
Read the Oman work permit guideOman resident card renewal

How the Oman split calculation works

Royal Decree 53 of 2023, the new Oman Labour Law, came into force on 31 July 2023. The new law replaces Royal Decree 35 of 2003 and changes the end-of-service gratuity formula. To avoid stripping accrued benefits from existing workers, the Ministry of Labour clarified through Oman Observer that any tenure crossing the 31 July 2023 cutoff is split into two portions. The pre-cutoff portion continues to be calculated under the old tiered formula. The post-cutoff portion uses the new flat formula. The two figures are summed for the final payout.

The wage base under both laws is the last drawn basic salary only. Housing, transport and other allowances are excluded. The minimum eligibility threshold is one full year of continuous service. Tenures below twelve months pay no statutory gratuity. Once the one-year threshold is crossed every additional month adds one-twelfth of a year's accrual on a pro-rata basis. Unpaid leave does not count as service.

Royal Decree 35 of 2003 (old law)

The old law applies to any tenure earned before 31 July 2023. The formula is tiered: for each of the first three years of service the worker accrues half a month of basic salary, then one full month of basic per year from year four onwards. The accrual cursor runs from the joining date with the employer, not from the start of the calculation window. So a worker who joined in January 2020 and whose pre-cutoff window runs from January 2020 to 31 July 2023 accrues three years of half-month and roughly 0.58 years of full-month, summing to roughly 1.58 months of basic.

The old law applies the same flat formula at all tenure levels for the year-four band, with no further escalation. There is no cap and no resignation reduction. The calculator above continues the tier cursor cleanly into the post-cutoff window: the new-law portion picks up at the worker's accrued tenure level, but the new-law formula itself is flat, so the cursor distinction matters only for the old-law portion.

Royal Decree 53 of 2023 (new law)

The new law applies to any tenure earned on or after 31 July 2023. The formula is a single flat rate: one full month of basic salary per completed year of service, no tiers, no escalation. The change makes the post-cutoff portion easier to verify and brings Oman closer to the Bahrain and Qatar flat-rate structures. Workers who joined on or after 31 July 2023 fall entirely under the new flat formula and do not have a split calculation.

Worked examples

Example 1: Joined 1 Jan 2020, leaving 1 Jan 2026, OMR 600 basic. Total tenure six years. Old-law portion: 1 Jan 2020 to 31 Jul 2023, that is 3.58 years. The first three years earn half a month each, summing to 1.5 months of basic, OMR 900. The remaining 0.58 years are in the full-month band, OMR 350. Old-law total OMR 1,250. New-law portion: 31 Jul 2023 to 1 Jan 2026, that is 2.42 years at one month per year, OMR 1,450. Grand total OMR 2,700.

Example 2: Joined 1 Aug 2023, leaving 1 Aug 2025, OMR 500 basic. All tenure is post-cutoff so the new flat formula applies. Two years at one month per year is OMR 1,000. No old-law portion.

Service windowFormulaRate
Before 31 Jul 2023, yr 1 to 3Old (RD 35/2003)0.5 month / yr
Before 31 Jul 2023, yr 4+Old (RD 35/2003)1 month / yr
From 31 Jul 2023New (RD 53/2023)1 month / yr

Example 3: Joined 1 Jan 2015, leaving 1 Jan 2026, OMR 800 basic. Total eleven years. Old-law portion: 1 Jan 2015 to 31 Jul 2023, that is 8.58 years. The first three years earn 1.5 months total (OMR 1,200). The remaining 5.58 years earn one month each, OMR 4,467. Old-law total OMR 5,667. New-law portion: 2.42 years at one month per year, OMR 1,933. Grand total OMR 7,600.

The future savings system

Article 136 of the Oman Social Protection Law mandates a regulated savings system for expatriate workers, replacing the lump-sum gratuity for new accruals. The implementation date has been pushed back to 19 July 2027. Until that date, Royal Decree 53/2023 continues to govern. From 19 July 2027 onwards, employers will contribute monthly to a savings vehicle on behalf of expat workers in line with the Bahrain SIO model. Existing accrued lump-sum entitlements are expected to be honoured at the transition, but the implementing regulations have not yet been published in full as of June 2026. Read the Oman resident card renewal guide for the wider residence and exit framework.

What to do next

For the broader Oman work and residence framework, see the Oman work permit service and the resident card renewal guide. Comparing across the Gulf? Run the same scenario through the Qatar end-of-service calculator and the Bahrain end-of-service calculator. For exit and overstay timing, the GCC overstay fines compared guide covers Oman alongside the other five states.

Frequently asked

How is Oman gratuity calculated in 2026?

Under Royal Decree 53 of 2023, effective from 31 July 2023, every completed year of service accrues one full month of basic salary, flat across all tenures. Royal Decree 35 of 2003 governed gratuity before that date and applied a tiered formula: half a month of basic per year for the first three years, then one full month per year from year four onwards. Workers whose employment spans the 31 July 2023 cutoff have a split calculation: pre-cutoff service is calculated at the old tiered rates and post-cutoff service at the new flat rate, then the two figures are summed for the final payout.

Does the split calculation apply to everyone?

Only to workers whose continuous service with the same employer crosses 31 July 2023. Workers who joined on or after 31 July 2023 fall entirely under the new flat formula. Workers who left before 31 July 2023 were paid out under the old tiered rules. The Ministry of Labour confirmed through Oman Observer that the split applies even where the worker continues in the same role after the cutoff, so existing tenures do not lose the accrued old-law portion.

Does resignation reduce my Oman gratuity?

No. Both Royal Decree 53/2023 and the prior Royal Decree 35/2003 treat resignation and termination identically once the minimum service threshold is met. Workers who resign receive the full calculated split-formula gratuity. The minimum eligibility is one year of continuous service: tenures below twelve months pay no statutory gratuity. There is no equivalent of the Kuwait or old Saudi resignation reduction tiers.

What wage base is used for the calculation?

Last drawn basic salary only. Both the old and the new laws exclude allowances such as housing, transport, food, telephone, education and any commission or bonus from the gratuity base. The basic line on the written contract registered with the Ministry of Labour is the legal source of truth. If your contract bundles allowances into basic explicitly the bundled figure becomes the gratuity base; if it separates them, only the basic line counts.

What about the social protection law savings system?

Article 136 of the Oman Social Protection Law mandates a savings-based system for expatriate workers, but implementation has been delayed to 19 July 2027. Until that date the Article 61 lump-sum formula in Royal Decree 53/2023 continues to apply. After 19 July 2027 the employer will start contributing to a regulated savings vehicle on behalf of expat workers and the lump-sum mechanism is expected to be phased out for new accruals.

Do partial years count?

Yes, on a pro-rata basis. The minimum eligibility threshold is one full year of continuous service. Once you cross that line, every additional month adds one-twelfth of a year's accrual. The calculator above splits the tenure on 31 July 2023 and prorates both portions automatically. Unpaid leave does not count as service and is excluded from the tenure window.

When must the gratuity be paid?

Royal Decree 53/2023 requires all end-of-service dues to be settled at the end of the contract alongside any unpaid wages, accrued leave balances and notice-period dues. The Ministry of Labour electronic complaints portal accepts delayed-payment complaints. The Labour Court is the next escalation step. Documentary evidence required for a complaint includes the registered contract, payslip history for the last six months and the resignation or termination letter.

Does the Royal Oman Police pension cover gratuity for expats?

No. The ROP-administered Public Authority for Social Insurance covers Omani nationals under the social insurance scheme. Expatriate workers do not contribute to social insurance and rely entirely on the gratuity provisions of Royal Decree 53/2023 (and the old Royal Decree 35/2003 for pre-cutoff service). The future savings system under the Social Protection Law, when implemented after 19 July 2027, will be the first scheme to bring expat workers into a regulated savings vehicle.