Quick answer: Oman's minimum gratuity is one month's last basic wage for each year of service, from the first day: 5 years on a 600 OMR basic wage gives 5 × 600 = 3,000 OMR.
How it's calculated
Article 61 requires the employer to pay workers who are not covered by the Social Protection Law a gratuity of at least one basic wage (one month) for each year of service, with parts of a year in proportion. It is calculated on the last basic wage, so allowances are not included. There is no minimum period: a few months of service earn a proportional amount.
Service that started before the 2023 law counts at the same rate. Article 1 defines a month as 30 days and a year as 365 days; service here runs from your first to your last working day, both counted, as years + months ÷ 12 + days ÷ 365.
Resignation does not reduce the gratuity. Dismissal for one of the causes in Article 40 removes it.
Article 61 applies until the savings scheme of the Social Protection Law starts for non-Omani workers, which has been set for no later than 19 July 2027. The employer may then settle earlier service into the scheme or pay it to the worker, on the basic wage at the settlement date. Omani workers are covered by social insurance under the Social Protection Law instead.
Worked examples
- 5 years, basic 600 OMR: 5 × 600 = 3,000.000 OMR
- 2 years 3 months, basic 400 OMR: 2.25 × 400 = 900.000 OMR
- 8 months, basic 300 OMR: 0.6667 × 300 = 200.000 OMR
Frequently asked questions
How is end of service calculated in Oman?
At least one month's last basic wage for each year of service, with parts of a year in proportion, under Article 61 of the 2023 Labour Law.
Is there a minimum service period in Oman?
No. Unlike the 2003 law, the 2023 law has no one-year minimum, so shorter service earns a proportional amount.
Do Omanis get this gratuity?
No. Omani workers are covered by social insurance under the Social Protection Law. Article 61 covers workers outside it, in practice expatriates.
Does my service before July 2023 count at the new rate?
Yes. Article 61 counts service that began before the law in the period used for the gratuity.
Is the formula changing?
A savings scheme under the Social Protection Law will replace the employer-paid gratuity for non-Omanis once it starts, no later than 19 July 2027. Until then Article 61 applies.
Do parts of a year count in Oman?
Yes. Parts of a year are paid in proportion, so 2 years and 6 months on a 600 OMR wage gives 2.5 × 600 = 1,500 OMR.