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Gratuity Hisab

How much gratuity after 10 years in Oman

How much gratuity after 10 years in Oman - hands counting cash salary payout
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Written by Usama Afzal, Founder & Editor, GratuityHisab. Last updated: October 2026. Based on the Oman Labour Law; not legal advice.

Short answer

How much gratuity after 10 years in Oman depends on one date: when your contract was concluded. New contracts (from 31 July 2023): 10 months of your last basic salary — on OMR 400 basic that is OMR 4,000. Old contracts (before 31 July 2023): 15 days' basic for the first 3 years plus a full month for each of the remaining 7 years = 8.5 months — on OMR 400 basic that is OMR 3,400. Allowances are excluded, and an ordinary resignation does not reduce either figure.

How much gratuity after 10 years in Oman: the short version

Ten years is a long time to serve one employer — and after a decade, the difference between the right number and the wrong one can be several months' salary. So how much gratuity after 10 years in Oman? Here is the whole answer in one table:

New contract (concluded on or after 31 July 2023): gratuity = last basic monthly salary × 10.
Old contract (concluded before 31 July 2023): gratuity = (basic ÷ 30 × 15) × 3 + basic × 7 = 8.5 months of basic salary.
Contract concludedRate for 10 yearsExample: OMR 500 basic
From 31 July 202310 months' basic salaryOMR 5,000
Before 31 July 20238.5 months' basic salaryOMR 4,250

The rest of this guide walks through both formulas step by step — which salary goes in, a full worked example, a salary table from OMR 300 to OMR 1,200, and the mistakes that shrink a decade of service into a disappointing cheque. To skip the maths, run our free Oman gratuity calculator — it applies both the old and new formulas automatically.

The 10-year gratuity formula in Oman: old contract vs new contract

Every correct answer to how much gratuity after 10 years in Oman starts from 31 July 2023, when Oman's new Labour Law (Royal Decree 53/2023) took effect. An August 2026 Ministry of Labour clarification confirmed that the contract date — not the date you leave — decides which of the two formulas prices your ten years. The old gratuity rule comes from the previous law (Royal Decree 35/2003).

So how much gratuity after 10 years in Oman if you signed a renewal after 31 July 2023? Check the date on your current contract — a fresh contract or renewal after that date may have moved you onto the new formula, which is worth 1.5 months extra over a decade. Our guide on old vs new contract rules in Oman explains the switch in detail.

Worked example: 10 years on OMR 600 basic in Oman

Take a worker whose last basic salary is OMR 600 and who completed exactly 10 years. Here is how much gratuity after 10 years in Oman that gives, step by step, under both formulas:

  1. New contract: one month's basic per year — 600 × 10 = OMR 6,000.
  2. Old contract, first 3 years: 15 days' basic per year = (600 ÷ 30 × 15) × 3 = OMR 900.
  3. Old contract, years 4–10: one month's basic per year = 600 × 7 = OMR 4,200.
  4. Old-contract total: 900 + 4,200 = OMR 5,100.

The gap is OMR 900 on identical service — which is why the first question behind how much gratuity after 10 years in Oman is always the contract date. Note there is no stated cap on either formula, so all ten years pay out in full.

How much gratuity after 10 years in Oman: full salary table

The table below answers how much gratuity after 10 years in Oman at the basic salaries people search for most, comparing the new formula with the old-contract tiered formula:

Monthly basic wage10 years — new contract10 years — old contract
OMR 3003,0002,550
OMR 4004,0003,400
OMR 5005,0004,250
OMR 6006,0005,100
OMR 8008,0006,800
OMR 1,00010,0008,500
OMR 1,20012,00010,200

Because the new formula is flat, awards grow in a straight line with service — after 10 years it is simply ten months of basic wage. Old-contract awards lag by exactly 1.5 months of basic salary, whatever the wage, because of the 15-day band in the first three years. Also see how to calculate gratuity in Oman for the general formula guide.

Which salary counts after 10 years in Oman?

The single most expensive dispute behind how much gratuity after 10 years in Oman is the salary figure. The law counts only your last basic salary — the basic wage you were on when the contract ended, not the salary you started on ten years ago. Housing, transport, food and other allowances are left out, along with overtime and bonuses.

How the daily wage is fixed for 10 years of service in Oman

Take this example: your basic salary is OMR 500 and your contract adds an OMR 200 housing allowance. Your gratuity is calculated on OMR 500 only: daily wage = 500 ÷ 30 = OMR 16.67. If you mistakenly used the OMR 700 total, you would over-estimate by OMR 3,000 on a new contract after 10 years — a figure no labour department would uphold. The Oman gratuity calculator asks for basic and allowances separately for exactly this reason.

If you got pay rises during your ten years, the whole decade is valued at the last basic wage — the low-salary early years are not calculated separately. That works in your favour: one late promotion lifts the entire 10-year award.

Partial years and split service over a decade in Oman

Partial years count proportionally in any answer to how much gratuity after 10 years in Oman. If you worked 10 years and 6 months on a new contract at OMR 400 basic, the formula gives 400 × 10.5 = OMR 4,200 — those 6 months are worth OMR 200, so don't let anyone round them down to zero. Keep your appointment letter and payslips as proof of the exact start and end dates.

Two complications come up often after long service. First, renewals: signing a fresh contract after 31 July 2023 can move you onto the new formula — check the renewal date on your current contract. Second, split service: some employers price the years before 31 July 2023 under the old formula and the years after under the new one. The Ministry's clarification is the reference point — get any split in writing and compare it with the Oman gratuity calculator.

Does resigning after 10 years reduce gratuity in Oman?

No. Oman is straightforward here: an ordinary resignation does not reduce your gratuity, as long as you serve your notice period (30 days for monthly-paid workers). The same 10-year formula applies whether you resign or the employer ends the contract. See gratuity if you resign in Oman for the full resignation rules.

The award is lost only if you are dismissed for serious misconduct under Article 40. If the employer breaks the contract seriously, Article 41 lets you leave without notice and keep your full rights. Skipping notice the other way — walking out without serving it — can cost you notice pay, deducted from the settlement (see notice period in Oman).

6 mistakes that shrink a 10-year Oman gratuity

Related guides on Oman gratuity

Your 5-minute 10-year gratuity checklist in Oman

  1. Check the date your current contract was concluded — before or after 31 July 2023 decides the formula, and the difference is 1.5 months of basic salary.
  2. Get your last basic wage figure from a recent payslip — with all allowances stripped out.
  3. Count your continuous service in years and months — part-years count proportionally.
  4. Apply the formula step by step — or run the Oman gratuity calculator and choose the matching contract type.
  5. Before signing the final settlement, check gratuity + unused leave + notice pay are listed separately — and ask for a written breakdown if any figure differs from yours.

Looking ahead: Oman is rolling out a new savings scheme for expats from 19 July 2027, which will change how end-of-service benefits accumulate. Read Oman's 2027 savings scheme so you know what is coming.

Frequently asked questions

How much gratuity after 10 years in Oman in 2026?

It depends on your contract date. On a new contract (from 31 July 2023), how much gratuity after 10 years in Oman is 10 months of your last basic salary — OMR 400 basic gives OMR 4,000. On an old contract, it is 8.5 months — the same OMR 400 gives OMR 3,400. Use your last basic salary; allowances are excluded.

How much gratuity after 10 years in Oman on an old contract?

8.5 months of your last basic salary: 15 days' basic for each of the first 3 years (1.5 months) plus one full month for each of the remaining 7 years. For example, OMR 600 basic × 8.5 = OMR 5,100. Resignation with notice served does not reduce it.

What is gratuity after 10 years in Oman on OMR 800 basic salary?

On a new contract: OMR 8,000 (800 × 10). On an old contract: OMR 6,800 (800 × 8.5). The new formula is worth OMR 1,200 more on identical service.

Does resigning after 10 years reduce gratuity in Oman?

No. An ordinary resignation with your notice period served does not reduce the award — the same 10-year formula applies whether you resign or the employer ends the contract. It is lost only on dismissal for serious misconduct under Article 40.

When is gratuity paid after 10 years in Oman, and is it taxed?

The gratuity is part of your final settlement, paid when the contract ends — get the breakdown in writing before signing. Oman levies no personal income tax on wages or end-of-service awards, so the figure you calculate is the figure you should receive.

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Sources

This guide is based on the Oman Labour Law (Royal Decree No. 35/2003, as amended). Labour laws are amended from time to time; for the latest version, always check the official gazette of Oman.

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