Calculate Your Oman End-of-Service Gratuity: One Month's Basic Wage a Year, for Pakistani Workers
Oman's Labour Law pays a gratuity of at least one month's basic wage for each year worked. See the working, the nine cases that cancel it and how to claim it.
Oman's Labour Law gives a worker an end-of-service gratuity of at least one month's basic wage for each year of service, worked out on the final basic wage, with part years paid in proportion. So a Pakistani on a basic wage of OMR 150 a month who leaves after 4 years and 6 months is owed at least OMR 675. The employer can withhold it only in nine listed cases of serious misconduct.
The rule is Article 61 of the Labour Law issued by Royal Decree 53/2023, dated 25 July 2023. We read the official Arabic text and its English translation on 20 October 2026. Oman is one of the biggest Gulf markets for Pakistani workers, and the gratuity is often the largest single sum a worker takes home at the end of a contract.
The gratuity is one month's basic wage for each year
Article 61 says the employer must pay a gratuity of not less than the basic wage for each year of service. Part years count in proportion. The final basic wage is the base, and service from before the 2023 law still counts.
The law defines the basic wage as the pay agreed in the employment contract plus any periodic allowance. The gross wage is the basic wage plus all other allowances. So housing, transport and similar allowances are left out of the gratuity unless they are periodic allowances. Read your contract to see which is which.
- Find your final basic wage on your last payslip or contract, in Omani rials (OMR).
- Count your full years of service with this employer.
- Multiply the basic wage by the number of full years.
- Add the part year: divide the extra months by 12 and multiply by the basic wage.
- Take away any unpaid leave you took, because unpaid leave does not count.
- Compare the total with what the employer offers, and ask for the working in writing.
A worked example: OMR 150 for 4 years and 6 months is OMR 675
On a final basic wage of OMR 150 a month, 4 full years give OMR 600. The extra 6 months are half a year, so they add OMR 75. The minimum gratuity is OMR 675. Those numbers are our arithmetic from Article 61.
| Final basic wage | Service | Working | Minimum gratuity |
|---|---|---|---|
| OMR 150 | 2 years | 150 x 2 | OMR 300 |
| OMR 150 | 4 years 6 months | 150 x 4.5 | OMR 675 |
| OMR 250 | 3 years 3 months | 250 x 3.25 | OMR 812.50 |
| OMR 400 | 8 years | 400 x 8 | OMR 3,200 |
These are minimums. The law says "not less than", so a contract can promise more. Unpaid special leave, and unpaid leave a mother takes to care for a child, are counted as service for other purposes but are excluded from the gratuity calculation under Articles 80 and 83.
The employer can refuse the gratuity in nine cases
Article 40 lets an employer dismiss a worker without notice or gratuity in nine cases. They include forged papers to get the job, unexcused absence for more than 7 days in a row or 10 days in a year, and assault at work.
The absence rule has a safeguard. For the 10 scattered days, the employer must give a written warning after the fifth day. A serious financial loss counts only if the employer reports it to the authorities within 30 working days. If your employer cites Article 40, ask which clause and ask for the papers that prove it.
You keep the gratuity if you leave for the employer's fault
Article 41 lets a worker leave without notice and keep every right, including the gratuity, in five cases. They include wages unpaid for more than two months in a row, fraud at hiring, assault, and a known serious danger the employer ignores.
You must tell the employer that you are leaving for one of these reasons. Do it in writing, keep a copy, and keep proof of the unpaid months, such as bank statements that show no salary. This is the clause most Pakistani workers need when a company stops paying.
The normal notice is 30 days, with 10 hours a week to job hunt
For an open-ended contract, either side may end it with written notice of 30 days for a monthly paid worker, or 15 days for others, unless the contract says more. Skipping notice means paying the notice wage instead, under Article 38.
During notice from the employer, you get 10 paid hours a week to look for a new job, under Article 39. Notice given while you are on leave starts only the day after the leave ends. At the end, the employer must give a free end-of-service certificate and return your papers, under Article 62.
| Situation | What the law says | Article |
|---|---|---|
| Normal resignation or ending | 30 days' notice for monthly paid workers | 38 |
| Employer unpaid for over 2 months | Leave at once, keep the gratuity | 41 |
| Serious misconduct | No notice, no gratuity | 40 |
| Arbitrary dismissal | 3 to 12 months' gross wage, plus gratuity | 11 |
| Unused annual leave | Paid at gross wage on leaving | 81 |
Unfair dismissal brings 3 to 12 months' pay on top
If a court finds a dismissal arbitrary, Article 11 says it must order reinstatement or compensation of 3 to 12 months' final gross wage. That comes on top of the gratuity, the wage for the notice period, and insurance contributions up to the judgment.
A dismissed worker has 30 days from being told of the decision to complain to the Ministry of Labour, under Article 10. Every labour claim must go first to the Ministry for a settlement attempt of up to 30 days. If it fails, the Ministry sends the case to court within 7 days. The Ministry's website lists an online labour complaint service for individuals.
Watch the clock. Article 9 says a claim for any right under the law lapses one year after it falls due. A worker who comes home to Pakistan and waits can lose the claim. Your annual leave and other rights are covered under Oman's leave and working hours rules, and the hiring side is in the Oman work visa process from Pakistan.
Common questions
How much is the end-of-service gratuity in Oman?
At least one month's final basic wage for each year of service, with part years paid in proportion, under Article 61 of Royal Decree 53/2023.
Do allowances count in the Oman gratuity?
Only periodic allowances, because the law defines the basic wage as the contract pay plus the periodic allowance. Other allowances are left out.
Can my employer keep my gratuity?
Only in the nine cases of Article 40, such as forged papers, long unexcused absence or assault. Ask which clause applies.
What if my employer has not paid me for months?
Article 41 lets you leave without notice and keep your gratuity if wages are unpaid for more than two months in a row. Tell the employer in writing.
How long do I have to claim?
One year from when the right falls due, under Article 9. A dismissed worker must complain within 30 days of the decision.
How does Oman compare with Saudi Arabia and the UAE?
Oman's one month a year is simpler than the Saudi end-of-service award and the UAE gratuity of 21 days a year for the first five years.
How we verified this
What we checked, where we read it, and what we could not confirm.
Last checked 20 October 2026. Articles 9, 10, 11, 38 to 41, 61, 62, 80, 81 and 83 and the wage definitions come from Royal Decree 53/2023 issuing the Labour Law, which we read in the official Arabic text and the English translation on 20 October 2026, checking the key numbers in both. The online complaint service is listed on the Ministry of Labour website. The worked examples are our arithmetic. Article 61 applies to workers who do not benefit from the Social Protection Law, and only until that law's savings system starts. We could not confirm whether the savings system has started for foreign workers, so ask the Ministry of Labour which rule covers you. We did not file a claim.
About the author
Global Affairs & Political Economy Writer
Muhammad Hatim is a book lover who started writing because he enjoys it. At Pakistan Era he writes about international relations, geopolitics and the global economy, with a particular interest in South Asia and the forces behind current events.
