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Oman Gratuity Calculator

Computes Oman end-of-service gratuity for an employee not covered by social insurance, at 15 days basic wage per year for the first three years and a full month per year after.

Enter your numbers

Monthly basic salary (OMR)

Example: 475

Years of service

Example: 6.5

Result

Currency

Figures are computed on your device; nothing is sent anywhere.

Formula

gratuity = min(yearsOfService, 3) * basicSalary * 0.5 + max(0, yearsOfService - 3) * basicSalary

How the calculation works

Oman splits the gratuity into two stages: the first three years are valued at half a month of basic wage each, and every year after that is valued at a full month.

This staged design means the total rises slowly at first and then speeds up sharply, so an employee with six years earns far more than double someone with three.

The last basic salary is the base, so the figure excludes housing, transport and other allowances even though they may form a large part of the package.

Common mistakes

Including allowances in the wage base overstates the gratuity, because Oman calculates it on the last basic salary alone.
Treating the whole period at one month per year ignores the lower 15-day rate for the first three years and overstates short-service gratuity.

When to use it

Use it when you are leaving an Omani employer and want to check the gratuity before signing the final settlement.
Use it to compare staying another year with leaving now, since each year beyond three adds a full month rather than half.

Worked example

A basic salary of 475 OMR with 6.5 years of service gives 3 years at 15 days each (712.5 OMR) plus 3.5 years at a full month each (1662.5 OMR), a gratuity of 2375 OMR.

Gratuity 2,375.00

Common questions

Which employees does this Oman gratuity rule apply to?

It applies to employees who are not covered by the Social Insurance Law, which in practice means most expatriate workers in Oman.

Last updated: 2026-10-04