How Oman Gratuity is Calculated
Oman's Labour Law Article 39 (Royal Decree No. 35 of 2003 as amended) entitles all private sector workers to end of service gratuity. Like Kuwait, Oman uses a 26-day working month to calculate the daily rate.
The Formula
- Day rate = Basic salary ÷ 26
- First 3 years: 15 days' pay per year
- Each year beyond 3: 30 days' pay per year
Oman provides full gratuity regardless of whether the employee resigned or was terminated, as long as they completed 1 year of service.
Frequently Asked Questions
Yes. Under Oman Labour Law, full gratuity is payable regardless of the reason for leaving, provided you have completed at least 1 year of continuous service. There is no resignation reduction unlike in UAE for unlimited contracts.
As of 2023, the minimum wage for Omani nationals in the private sector is OMR 325 per month. Expatriate workers do not have a statutory minimum wage under Oman labour law, though visa requirements typically require a minimum salary level.