Oman end-of-service calculator
Oman raised its gratuity rate on 31 July 2023. This shows both parts — the old formula for earlier service and the new flat one-month-a-year rate — and the total.
If your service spans the change, your gratuity has two pieces. We work out each from your dates, so nothing is left to guesswork.
How Oman end-of-service works now (Article 61)
Under the labour law introduced by Royal Decree 53/2023, service from 1 August 2023 earns a flat one month of basic salary for every year. Service before 31 July 2023 keeps the old formula — 15 days a year for the first three years, then a full month a year. Where your service spans the date, both apply and stack into a single payout.
It's calculated on your basic salary only, with no cap, and resignation doesn't reduce it. Looking ahead: from 19 July 2027 a contributory savings fund will replace this gratuity — that change isn't in effect yet, so today's figure uses the current rules.
Worked example. Basic OMR 1,000, from 1 August 2021 to 1 August 2025: the first two years (old formula) are 1.0 month = OMR 1,000; the next two years (new rate) are 2.0 months = OMR 2,000 — OMR 3,000 in total.
Based on Oman Labour Law (Royal Decree 53/2023), Article 61 — last verified 14 June 2026.
Questions people ask
How is gratuity calculated in Oman now?
Service from 1 August 2023 earns a full month's basic salary per year (Article 61). Service before 31 July 2023 uses the old formula — 15 days a year for the first three years, then a month a year. If your service spans the date, both apply.
Is Oman gratuity based on basic or total salary?
Basic salary only — housing, transport and other allowances are excluded.
Is there a cap on Oman gratuity?
No. Unlike the UAE or Kuwait, Oman places no maximum — 20 years of service earns 20 months of basic salary, and so on.
What changes in 2027?
From 19 July 2027, a contributory savings fund (the Social Protection Fund) will replace direct gratuity, with the employer paying 9% of basic salary monthly. It isn't in effect yet, so today's calculation uses the current rules.