Oman Gratuity Calculator
Updated November 2026 · Free · No sign-up
Calculate Oman end-of-service benefits — the 2023 Labour Law replaced expat gratuity with savings-fund contributions (9% of gross wage, employer-paid) under the Social Protection Fund; pre-conversion service pays the old basic-wage formula.
Quick answer: Oman’s new system: employers pay 9% of the expat’s gross wage monthly into the Social Protection Fund’s savings scheme — replacing the old gratuity (15 days’ basic/year for the first 3 years, one month/year after) which still governs pre-conversion service. Omanis: PASI/Social Protection pension instead.
Two Eras, Two Formulas
| Old gratuity (pre-conversion service) | Savings fund (the new era) | |
|---|---|---|
| Mechanism | Lump at exit from the employer | 9% of gross wage monthly to the Social Protection Fund |
| Formula | 15 days’ BASIC wage/year (first 3), one month/year after | Accumulated contributions + investment returns |
| Risk | Employer solvency | State-held, portable between employers |
Oman followed Bahrain into funded end-of-service — part of the 2023 Social Protection Law’s consolidation (which also unified maternity 98 days / paternity 7 days paid through social protection branches). Transition timing and employer registration phases varied — verify your employer’s conversion date for the era split.
Worked Example
OMR 800 gross (600 basic), 4 pre-conversion years + 3 post: old portion = 3 × 300 + 1 × 600 = OMR 1,500 (employer-owed at exit); new portion ≈ 800 × 9% × 36 months = OMR 2,592 + returns (fund-held). Note the base difference: old = basic only; new = gross — the conversion quietly enriched the accrual for allowance-heavy packages.
Claims and Context
Savings-fund balances claim from the Social Protection Fund at end of service/final departure; old-formula portions remain employer debts (Ministry of Labour disputes). The Gulf’s funded-vs-unfunded map now: Bahrain + Oman funded, UAE optional (DIFC DEWS + voluntary federal scheme), Qatar/Kuwait/Saudi still lump-sum promises.
Frequently Asked Questions
How does Oman’s new end-of-service system work?
Employers pay 9% of the expat’s gross wage monthly into the Social Protection Fund’s savings scheme — claimed by the worker at exit, portable between jobs.
What about my service before the conversion?
The old formula governs it: 15 days’ basic wage per year for the first three years, one month per year after — employer-paid at exit.
Is the new accrual on basic or gross?
Gross wage — richer than the old basic-only formula for allowance-heavy packages.
What do Omani nationals get?
The social-insurance pension system (employer + employee contributions) rather than gratuity — the savings fund is the expat track.
Where do I claim?
Fund-era balances from the Social Protection Fund; pre-conversion gratuity from the employer, with Ministry of Labour dispute channels.
✓ Formula verified • Last updated: November 3, 2026