End-of-service gratuity (Oman)

What Oman's 2023 Labour Law owes a worker the SPF does not cover: at least a month's basic wage for each year of service.

In Arabic: مكافأة نهاية الخدمة (عُمان)

Meaning

Under article 61 of the Labour Law, Royal Decree 53/2023, a worker whom the Social Protection Law does not cover, in practice an expatriate, earns an end-of-service gratuity of at least a month's basic wage for each year of service, parts of a year in proportion, at the last basic wage. Service that began before the law counts towards the period.

An Omani is covered by the Social Protection Fund instead. The SPF plans a compulsory savings scheme for expatriates, 9% of the basic wage paid by the employer, to replace the gratuity; until it starts, the employer pays the gratuity on leaving.

Also called: Oman gratuity · expatriate end of service Oman · article 61 gratuity

Example

An expatriate engineer leaves Ruwi Trading LLC after three years on a basic wage of OMR 1,000.000 a month. The gratuity is at least 3 × OMR 1,000.000 = OMR 3,000.000, paid by the employer with the final settlement.

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