How to use this calculator
- Enter your last monthly basic salary in OMR, without allowances.
- Enter the date you started with this employer and your last working day. The calculator splits your service at 31 July 2023 automatically.
- Click Calculate to see the old-law period, the new-law period and the combined gratuity.
Formula — how it is calculated
Article 61 of the Labour Law issued by Royal Decree 53/2023 covers workers who are not beneficiaries of the Social Protection Law — in practice, expatriate employees, since Omani nationals are covered by the Social Protection Fund. For service from 31 July 2023, the gratuity is at least one full month's basic wage for each year of service, with part years paid in proportion. That replaced the old two-tier formula of the previous law (Royal Decree 35/2003), under which the first three years earned only 15 days each.
Crucially, the 2023 law did not rewrite the past. Service completed before 31 July 2023 is still calculated at the old rates: 15 days' basic wage per year for the first three years of service, then 30 days per year for the rest of that earlier period. Your last basic wage is used for both periods. A future savings scheme under the Social Protection Law is scheduled to replace this lump-sum gratuity for expatriates from 19 July 2027; until then, employers pay the Article 61 gratuity as calculated here. Because the split depends on exact dates, small differences in start or end dates move the result slightly — and if your service began long before 2023, confirm the transitional treatment with the Ministry of Labour.
Worked example
Khalid's last basic salary is OMR 800. He started on 31 July 2020 and his last day is 31 July 2025 — five years in total. The first three years fall entirely before the cut-off, so they use the old rate: 3 × 15 = 45 days. The remaining two years fall after 31 July 2023, so they use the new rate: 2 × 30 = 60 days. Total: 105 days. His daily wage is 800 ÷ 30 = OMR 26.67, and 105 × 26.67 ≈ OMR 2,800. The point of the split is clearest for shorter service: a worker who joined in 2024 and leaves after two years earns 60 days under the new law — double the 30 days the old first-three-years rate would have given. The calculator shows the precise split for your own dates.
Frequently asked questions
How is Oman gratuity calculated under the new law?
Service from 31 July 2023 earns one month's basic wage per year, pro rata. Service before that date keeps the old rates — 15 days per year for the first three years of service, then 30 days per year — and the two parts are added together.
Does the 2023 Oman law apply to my service before 2023?
No. Royal Decree 53/2023 was not retroactive. Earlier service is calculated under the repealed law's formula, which is why this calculator asks for dates instead of just years.
Who receives gratuity in Oman — Omanis or expatriates?
The Article 61 gratuity applies to workers not covered by the Social Protection Law, which in practice means expatriate employees. Omani nationals receive benefits through the Social Protection Fund instead.
Are allowances included in Oman gratuity?
No. The calculation uses the last basic wage only. Fixed allowances and variable pay are excluded unless your contract expressly says otherwise.
What happens after July 2027?
A savings scheme under the Social Protection Law is scheduled to replace the lump-sum expatriate gratuity from 19 July 2027. Until that start date, the Article 61 gratuity calculated here is what employers pay.