Oman Gratuity Calculator
Leaving a job in Oman, or paying out someone who is? Enter the last basic salary and the service dates. The calculator estimates end of service gratuity under the current Labour Law and splits it into the old and new rates for you.
How gratuity is calculated in Oman
Gratuity is a lump sum an employer pays a non-Omani employee when their service ends. It is based on the last basic salary, and it rewards every year worked.
Oman changed the rules when the new Labour Law, Royal Decree 53/2023, came into force on 31 July 2023. Service on either side of that date is calculated differently.
| Service period | Rate |
|---|---|
| Before 31 July 2023, first 3 years | 15 days' basic salary per year |
| Before 31 July 2023, after year 3 | 1 month's basic salary per year |
| From 31 July 2023 onwards | 1 month's basic salary per year |
In October 2024, the Ministry of Labour confirmed this split. Service built up under the old law keeps the old rate. Service from 31 July 2023 earns the new, higher rate.
What counts as basic salary?
Only the basic salary counts. Housing, transport, phone and other allowances are left out, and so are bonuses and overtime.
The calculation uses the last basic salary before the service ends, not an average across the years. So a pay rise in your final year raises the gratuity for your whole service.
Worked examples
Example 1: Service on both sides of the change
Priya joined on 1 August 2021 and left on 31 July 2025. Her last basic salary was OMR 600.
- 2 years before 31 July 2023, at 15 days per year: OMR 600
- 2 years after 31 July 2023, at 1 month per year: OMR 1,200
Total: about OMR 1,800
Example 2: Long service
Ahmed joined on 1 January 2018 and left on 1 January 2026. His last basic salary was OMR 800.
- First 3 years, at 15 days per year: OMR 1,200
- About 2.6 more years before 31 July 2023, at 1 month per year: about OMR 2,062
- About 2.4 years after 31 July 2023, at 1 month per year: about OMR 1,938
Total: about OMR 5,200
Example 3: Less than two years, all under the new law
Sara joined on 1 January 2025 and left on 1 July 2026, earning OMR 500 basic. That is about 1.5 years at one month per year. Under the new law, part years count toward gratuity too.
Total: about OMR 750
Who gets gratuity, and who does not
Expatriate employees: Yes. Article 61 of the Labour Law requires employers to pay gratuity to workers who are not covered by the Social Protection Law.
Omani employees: No gratuity under Article 61. Omanis are covered by the Social Protection Fund, which provides pensions and other benefits instead.
Why your final amount might differ
The calculator gives an estimate. Your final figure can be different if:
- your contract gives you more than the legal minimum
- you had long periods of unpaid leave
- your employer is allowed to deduct money you owe them
- your basic salary is recorded differently from what you entered
Ask your employer for a written breakdown. If you disagree with the figure, you can raise it with the Ministry of Labour.
What is changing next
Oman plans to replace gratuity for expatriate workers with a savings scheme run by the Social Protection Fund. Its start has been postponed to July 2027. Until the scheme begins, employers keep paying gratuity under Article 61, which is what this calculator uses. We will update this page when the scheme starts.
For employers: calculating gratuity for a whole team
Working out one gratuity by hand is manageable. Doing it for dozens of employees, each with their own join date, pay history and split across the 2023 change, is where mistakes creep in.
NoorHR calculates end of service for every employee automatically. It keeps full salary and service histories, so the final settlement matches your payroll records. It was built in Muscat for Oman's labour rules. You can see how it handles this and the rest of Oman compliance on the NoorHR page for organizations in Oman.
See how NoorHR worksFor the full rules and more scenarios, read our guide to end of service gratuity in Oman.
Frequently asked questions
How is gratuity calculated in Oman?
Service from 31 July 2023 earns one month's basic salary per year. Service before that date earns 15 days' basic salary per year for the first three years, then one month per year after that.
Is gratuity based on basic salary or total salary?
Basic salary only. Allowances, bonuses and overtime are not included.
Do I get gratuity if I worked less than a year?
Under the new law, part years count. So service from 31 July 2023 earns a proportional amount even if it is under a year.
Do Omani employees get gratuity?
No. Omani employees are covered by the Social Protection Fund, which provides pensions and other benefits instead.
Is there a cap on gratuity in Oman?
The Labour Law does not set a maximum amount.
Is this calculator's result legally binding?
No. It is an estimate. Your employer's final settlement, your contract and the Ministry of Labour decide the final figure.
Last updated: September 2026

