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Oman End of Service Calculator 2026
Oman’s 2023 labor law (Royal Decree 53/2023, Article 61) replaced the old tiered formula with a flat one month’s basic wage per year. If your service started before 31 July 2023, those years still accrue under the old tiers. Enter your dates — the calculator bifurcates the two regimes automatically.
Calculate your Oman benefit ESTIMATE ONLY
How it works: service up to 31 July 2023 accrues at the old formula (15 days’ basic/yr for the first 3 years of service, then 1 month/yr); service from 1 August 2023 accrues at the new flat rate (1 month’s basic/yr). Fractions prorated by days ÷ 365. No cap, no minimum, no resignation reduction.
TEST CASES (hand-verified 2026-10-09): (500, 2021-08-01→2026-12-31): old 499.32 + new 1710.96 = 2210.27; all-new (500, 2024-01-01→2026-01-01): 1000.00; all-old (500, 2020-01-01→2022-01-01): 500.00; (800, 2022-06-01→2025-06-01): old 466.30 + new 1466.30 = 1932.60
The two formulas
| Regime | Formula | Applies to |
|---|---|---|
| New law (RD 53/2023, Art. 61) | Flat 1 month’s basic wage per year | Service from 1 Aug 2023 |
| Old law (2003 law, commonly cited Art. 39*) | 15 days’ basic/yr (first 3 yrs), then 1 month/yr | Service up to 31 Jul 2023 |
*The old-law article number is widely repeated but we have not read it from official text directly — treated as commonly cited, not verified.
Worked example
Basic wage: OMR 500 · Service: 1 Aug 2021 – 31 Dec 2026 (5.42 yrs)
- Old-law portion (1 Aug 2021 → 31 Jul 2023, ~2.0 yrs): 2 × 15 days × (500 ÷ 30) = OMR 500.00
- New-law portion (1 Aug 2023 → 31 Dec 2026, ~3.42 yrs): 3.42 × 500 = OMR 1,708.33
- Total = OMR 2,208.33 (rounded year fractions; the tool uses exact days)
- Compare new-law-only for 3 years: 3 × 500 = OMR 1,500 — the bifurcation matters
The coming savings system
Oman’s Social Protection Law provides that a savings system will eventually replace employer-paid gratuity for non-Omani workers, with pre-existing rights settled into the system or paid directly by the employer. The launch date — reported around 2027 in secondary sources — is not officially confirmed. We are watching for SPF/Ministry of Labour confirmation and will update this page when it lands.
Frequently asked questions
How do I calculate Oman end-of-service for service spanning 2023?
Bifurcate it. Service up to 31 July 2023 accrues under the old formula (15 days’ basic wage per year for the first 3 years of service, then one month per year); service from 1 August 2023 accrues at the new flat rate of one month’s basic wage per year. Add the two portions.
What was the old Oman end-of-service formula?
Under the repealed 2003 law, commonly cited as Article 39: 15 days’ basic wage per year for the first 3 years, then one full month’s basic wage per year after. The article citation is widely repeated but we have not read it from official text directly.
Is there a cap on Oman end-of-service benefits?
Article 61 of Royal Decree 53/2023 sets no cap and no minimum service. Some pages claim 24-month or 18-month caps — these are not supported by the statute.
Will Oman’s savings system replace my gratuity?
Eventually. The Social Protection Law provides that a savings system will replace employer-paid gratuity for non-Omani workers, with pre-existing rights settled into the system or paid directly. The launch date (expected around 2027) is not officially confirmed.
Does resigning reduce Oman gratuity?
No. Article 61 contains no resignation reduction tiers. Only summary dismissal for gross misconduct forfeits the benefit.
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