Oman Gratuity Calculator 2026 – New Labour Law 53/2023
Estimate end-of-service gratuity for expatriates in Oman. Service under the new Labour Law (from 31 July 2023) earns at least one month of final basic salary per year; earlier service follows the old law, as in the Ministry of Labour's example.
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Article 61 of the Labour Law issued by Royal Decree 53/2023 gives workers not covered by the Social Protection Law at least one month of basic wage for each year of service, pro-rata, on the final basic wage. The law came into force on 31 July 2023.
The Ministry of Labour explained that service before that date is paid under the old rule — 15 days per year for the first three years and a month per year after that — and service from the new law at a full month. This calculator follows that split and shows both parts. Some advisers read Article 61 as applying the new rate to all years; ask the Ministry if your case depends on it.
Royal Decree 60/2025 moved the start of the expatriate savings system (9% of basic wage paid to the Social Protection Fund) to 19 July 2027. From then the savings system replaces employer gratuity for future service, so service after 18 July 2027 is not counted here.
- Royal Decree 53/2023 – Labour Law (decree.om)
- Oman Observer – Ministry of Labour gratuity example and savings system
Rules were checked against these sources in October 2026. Laws change — if a source says something different, the source is right.
How is gratuity calculated in Oman in 2026?
One month of final basic salary per year for service from 31 July 2023, and the old 15-days-then-one-month rule for earlier service, pro-rata.
Does resignation reduce gratuity in Oman?
No reduction applies under the new Labour Law.
What changes in 2027?
From 19 July 2027 the savings system (9% of basic paid monthly to the Social Protection Fund) replaces employer-paid gratuity for expatriates' future service.