Oman End of Service Gratuity (EOSB) — Complete Guide 2026

Oman's end-of-service payment is the post-service gratuity — a lump sum your employer must pay when your private-sector employment ends. Like the gratuity elsewhere in the Gulf, it is a legal entitlement, not a discretionary reward, and it exists because private-sector expatriate workers have historically had no state pension to leave on.

The gratuity is set by the Labour Law issued under Royal Decree No. 53 of 2023, specifically Article 61. This 2023 Labour Law replaced the older Royal Decree No. 35 of 2003 and took effect in late July 2023. The change matters: it raised the rate, and it created a transition for anyone whose service spans the changeover.

Article 61 covers workers who are not yet enrolled in the new Social Protection savings scheme. (Oman is gradually moving toward an individual savings model that will eventually replace the lump-sum gratuity for affected workers; until then, the gratuity in this guide applies.)

Under the 2023 Labour Law (Article 61), the gratuity is one full month of basic salary for every year of service, from the first year. There is no cap and no resignation penalty — you receive the same gratuity whether you resign or are terminated.

It is calculated on your last basic wage, and only the basic wage — housing, transport, and other allowances are excluded. Fractions of a year are paid pro-rata: there is no minimum service requirement, so even less than a full year accrues a proportional amount.

To convert your monthly salary to the daily figure used for part-years, this calculator divides your monthly basic salary by 30.

The 2023 Labour Law increased the rate, so service is split at the changeover and each part is valued under its own formula. The Ministry of Labour applies:

• Service before the new law (late July 2023): the old Royal Decree 35/2003 formula — 15 days' basic salary per year for the first 3 years, then one full month per year for each year after that.
• Service from late July 2023 onward: the new rate — one full month of basic salary per year, from the first year.

If your employment spans the changeover, this calculator works out the two periods separately and adds them together. If you joined on or after the changeover, the whole gratuity uses the new one-month-per-year rate, with no pre-2023 portion.

A common error is to apply a flat 15 days per year to all pre-2023 service. That understates the gratuity for anyone with more than three years of pre-2023 service, because the old formula stepped up to one month per year after the third year. This calculator applies the correct two-tier old-law rate to the pre-2023 portion.

Example 1 — joined after the change (new law only). Started after the late-July-2023 changeover, basic salary OMR 500, 3 full years of service. All service is at the one-month-per-year rate: 3 × OMR 500 = OMR 1,500.

Example 2 — pre-2023 portion (old formula). Four full years before the changeover, basic salary OMR 500 (daily rate OMR 500 ÷ 30 = OMR 16.67). First 3 years at 15 days = 45 days; year 4 at one month = 30 days; total 75 days × OMR 16.67 = OMR 1,250. (A flat-15-days calculation would have wrongly given only OMR 1,000.)

Example 3 — service that spans the change. Your total is the two portions added together: the old-formula amount for service up to the changeover, plus one month per year from the changeover to your leaving date. The calculator shows both lines and the combined figure.

The 2023 Labour Law makes the gratuity broad and simple:

• No minimum service. Gratuity accrues pro-rata from your first day — even under a year earns a proportional amount.
• No resignation penalty. A resigning worker and a terminated worker with the same service receive the same gratuity.
• Basic salary only. Allowances do not count toward the gratuity base.
• Probation counts. Service runs from your first day of work.

The gratuity is a statutory minimum. A contract that offers more always overrides; any clause that pays less than Article 61 has no legal effect.

Your gratuity is due when your employment ends. If your employer delays or refuses:

• Keep your records. Your contract, payslips, and proof of your start and end dates support the calculation, which rests on your service length and last basic wage.
• File a complaint with the Ministry of Labour. Oman's labour ministry handles private-sector disputes and can refer unresolved cases onward. Delay in paying the gratuity is a breach of the Labour Law.
• Act promptly. Labour claims are time-limited, so raise a dispute soon after your employment ends.

Use the Oman gratuity calculator to get your exact figure, including the pre/post-2023 split, before you raise anything.