Oman End-of-Service Benefit: A Month per Year, and What Changes in 2027
The new law gives a month of basic salary per year since July 2023, older service uses the old law, and from 2027 a savings fund replaces the gratuity. Worked examples.
By the Hesab Oman team · Updated October 17, 2026 · 4 min read
End-of-service pay in Oman has changed twice in a few years: a new Labour Law in 2023 raised it, and a later decree creates a savings fund to replace it. If you've worked in Oman for several years, your gratuity may be worked out under two different rules.
The current rule (Royal Decree 53/2023)
- From 31 July 2023: one full month of basic salary for each year of service.
- You qualify after at least one year of service.
- Daily wage = basic ÷ 30.
| Years of service (all after 2023) | Gratuity |
|---|---|
| 1 | OMR 600 |
| 2 | OMR 1,200 |
| 3 | OMR 1,800 |
| 4 | OMR 2,400 |
If you started before 2023
Service before 31 July 2023 is worked out under the old law: 15 days for each of the first three years and 30 days after that. Service from that date uses the new law.
Example: someone who started on 1 January 2019 and leaves on 31 August 2026 on OMR 600 basic gets about OMR 3,703. Someone who started in September 2023 and leaves in August 2026 gets about OMR 1,802.
The savings fund from 2027
Under Royal Decree 60/2025, from 19 July 2027 a savings fund starts for non-Omani workers: the employer pays 9% of basic salary each month into the fund, and that replaces the gratuity for service after that date. What you've earned before it stays yours.
- Keep a copy of your contract and the payslips that show your basic salary.
- Unused leave days are paid on top of the gratuity at final settlement.
- If there's a dispute, you can complain to the Ministry of Labour.