How employees’ gratuity will be calculated in Oman for now

The Ministry of Labour has outlined how end-of-service gratuity will be calculated for Omani workforce and expatriates until the savings system is implemented. For Omani workers, the gratuity is based on the basic wage for each year of service. The provisions of the new law will apply for entitlements under the new law, while a combination of the old and new laws will apply for entitlements under both laws. The savings system, which will be implemented by July 2026, will replace the current gratuity system. Expatriate employees will have 9% of their monthly basic wage contributed to the savings system by their employers. The savings can be withdrawn in certain circumstances, such as the end of employment or permanent disability. If someone exits the savings system, they must notify the fund within a month.