Oman Gratuity Calculation Guide 2026: Eligibility & Formula

Last updated: September 2026 – rewritten for Royal Decree 53/2023 (one month’s basic pay per year) with corrected examples.

Do you not know the degree of gratuity you are supposed to have in Oman? If you’re an expat working in Oman, you will save the hassle of a lot of confusion and get what you are rightfully entitled to by knowing your end-of-service benefits.

This guide is a breakdown of how the calculation of gratuity is done, who qualifies, and the regulations in the circumstances when you resign or get sacked.

How Oman Gratuity Is Calculated

In Oman, Gratuity is a legal end-of-service benefit accorded to employees who leave their employment. Our free calculator below gives you an estimate in seconds.

• It covers expat employees, and part-years count pro rata, so there’s no longer a one-year minimum.
• The calculation of gratuity is done based on basic salary multiplied by years of service.
• Under the current law, you get one month’s basic salary for every year of service, starting from the very first year.
• This will depend on the final sum that you will receive when you either resign or are terminated.

Who Is Eligible for Gratuity in Oman?

It is important to know the eligibility. Here’s a clear breakdown:

Minimum Service Required

• 1 full year of continuous service.
• Shorter stints still earn a pro-rata share.

Full-Time Employees

• They must be on a conventional employment contract.
• Minimal salary must be well-established.

Part-Time Employees

• May can qualify in case their contract has end-of-service benefits.

Resignation Cases

• Any length of service: one month’s basic pay per year, pro rata
• 3+ years: Full rate (30 days per year)

Termination Cases

• Full gratuity in case of termination without misconduct.
• Biased or no payment in instances of grave misconduct, as per the Oman Labour Law.

Probation Period

• The period of probation does not add to the gratuity.

Calculate Your Oman Gratuity Instantly

Want to know exactly how much gratuity you’re entitled to? Use our interactive Oman Gratuity Calculator here:

The calculator is simple to use:

Inputs

• Monthly Basic Salary (OMR)
• Years of Service (years & months).

Output

• Total Gratuity Amount (OMR)

How Gratuity Is Calculated in Oman

Oman’s Labour Law (Royal Decree 53/2023) made gratuity much simpler than it used to be. For expat employees, it’s now a flat rate for every year you work – and it no longer matters whether you resign or your employer ends the contract.

A. The Basic Rule

• One month’s basic salary for each year of service – from the very first year.
• Part-years count pro rata, so there’s no longer a one-year minimum.
• Resigning doesn’t reduce the rate – you get the same amount as someone whose contract was ended.
• Only basic salary counts – housing, transport and other allowances are left out.

B. When Gratuity Can Be Affected

Gratuity can be withheld in cases of serious misconduct that lead to lawful dismissal under the Labour Law. Outside that, the employer can only deduct amounts you genuinely owe the company. If you think you’ve been underpaid, you can file a complaint with the Ministry of Labour – but do it within a year of the payment falling due, because claims expire after that.

C. Oman Gratuity Formula

Gratuity = Last basic monthly salary × Years of service (with part-years counted as a fraction).

Gratuity Calculation Table

Gratuity Calculation Examples

Resignation After 2.5 Years

• Basic salary: 350 OMR
• Years of service: 2.5
• Gratuity: 350 × 2.5 = 875 OMR

Employee Completed 7 Years

• Basic salary: 350 OMR
• Years of service: 7
• Gratuity: 350 × 7 = 2,450 OMR

Employee Terminated After 9 Years (No Misconduct)

• Basic salary: 350 OMR
• Years of service: 9
• Gratuity: 350 × 9 = 3,150 OMR

These examples assume the whole period falls under the current law. If part of your service was before 31 July 2023, the older rules (15 days’ pay per year for the first three years) may apply to that earlier period – the calculator above handles this split for you.

Latest Oman Labour Law Updates on Gratuity

A bigger change is on the way. From 19 July 2027, gratuity for expats is due to be replaced by a mandatory savings scheme run through the Social Protection Fund, with employers paying 9% of your basic salary into it every month. Until then, the Labour Law’s one-month-per-year gratuity applies – so check your figures now and keep your final payslips safe.

• Revised salary scales: Basic salary has been made more precise.
• Tighter misconduct regulations: The employer has to give evidence of deductions.
• Online complaints: now, online submission of gratuity disputes is possible.
• Delayed payments audits: Employers are penalised for the hold-up of gratuity.

Read more: Find Iqama Number by Passport in Saudi Arabia

Documents Required to Claim Gratuity in Oman

• Passport copy
• Omani residence card
• Employment contract
• Salary slips (last 3 months)
• End-of-service form
• Bank account details
• Civil ID (if applicable)

What to Do If Your Employer Doesn’t Pay Gratuity

1. Call HR to begin with: ask to be broken down in writing.
2. Send a formal email: attach your contract and last working day, and salary slips.
3. Make a complaint to the Ministry of Labour: online, in the offices, or through the hotline.
4. Time: file within one year of the payment falling due, as claims expire after that.
5. Retain documentation: All emails, letters, and documents come in handy in conflicts.

Frequently Asked Questions (FAQs)

1. What is the calculation of gratuity in Oman on resignations?

You get one month’s basic salary for each year worked, whether you resign or are let go.

2. Is it a basic salary-based or full salary-based gratuity?

In Oman, gratuity is calculated based on the basic salary, and not the total salary or allowances.

3. Is gratuity given to expats in Oman?

Yes. Gratuity is really an expat benefit – Omanis covered by the Social Protection Fund receive social insurance benefits instead.

4. How much service should one have to get gratuity?

There’s no minimum any more – part-years are paid pro rata.

5. What is the number of days of gratuity paid annually?

• Every year: one month’s basic pay
• 3+ years: 30 days per year

Read more: Change Iqama Profession in Saudi Arabia – Full Guide

Working elsewhere in the Gulf? Compare the rules with our UAE gratuity formula guide and Qatar gratuity calculation. For more on living in Oman, see the Oman resident card guide and the Wage Protection System in Oman.

New to the job? Our guide to your first year working in Oman covers leave, notice and other money questions from day one.

Final Words

Understanding how you can work out your gratuity in Oman is useful in ensuring you get the benefits that you are entitled to. It can help you to plan your own finances efficiently by knowing the rules, formulas, and qualifications.

Our Oman Gratuity Calculator will help you to become aware of what you are owed and see whether you are getting the right amount of it, simply by keying in the details you need. Be updated, have your documents ready, and defend your rights. You should always be rewarded for your hard work.