End-of-Service Gratuity
Written in plain language for general understanding. This is educational content, not legal advice. Based on Omani royal decrees, ministerial decisions, and the Basic Statute of the State.
Omani National Law
What is this right?
When your employment ends in Oman, you may be entitled to an end-of-service gratuity (severance payment):
- First 3 years: 15 days' basic wage for each year of service.
- After 3 years: 1 month's basic wage for each additional year of service.
- Partial years are calculated proportionally.
- The gratuity applies to expatriate workers. Omani nationals are now covered by the Social Protection Fund (Royal Decree 53/2023), which replaces the gratuity with a pension system.
- The gratuity is calculated on basic wage only — allowances and bonuses are excluded unless your contract says otherwise.
When does it apply?
- You are an expatriate worker whose employment contract has ended (for any reason).
- You have completed at least 1 year of continuous service.
- If you resign, you are still entitled to the gratuity — there is no forfeiture for resignation.
- If you are terminated for cause under Article 40, you may still receive a proportional gratuity.
What should you do?
- Calculate your gratuity based on your basic wage and years of service before you leave.
- Request a written breakdown from your employer showing how the gratuity was calculated.
- If your employer refuses to pay, file a complaint with the Ministry of Labour — they can mediate.
- If mediation fails, the case goes to the Primary Court (Labour Division).
What should you NOT do?
- Do not sign a final settlement until you have verified the gratuity amount is correct.
- Do not accept a lump sum without a breakdown — make sure all service years are counted.
- Do not confuse basic wage with total salary — allowances are usually excluded from the calculation.
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