Oman new gratuity law 2026: what Royal Decree 53/2023 changes
Written by Usama Afzal, Founder & Editor, GratuityHisab. Last updated: October 2026. Based on Oman Royal Decree 53/2023 and the previous labour law framework; not legal advice.
Under the Oman new gratuity law (Royal Decree 53/2023), expatriate workers get at least one full basic wage per year of service (pro-rated for partial years). The legacy rules were less generous: 15 days' basic wage per year for the first 3 years, then 30 days per year after that. Oman is transitioning expatriate end-of-service benefits into a formal savings and social protection system, so the new framework is the one that matters going forward.
Oman new gratuity law: old vs new rules
The Oman new gratuity law under Royal Decree 53/2023 replaced the old bracket system with a simpler, more generous rule. Here is the direct comparison:
| Rule | Legacy (old) rules | New rules (Royal Decree 53/2023) |
|---|---|---|
| Years 1–3 | 15 days' basic wage per year | 1 full basic wage per year |
| Year 4 onward | 30 days' basic wage per year | 1 full basic wage per year |
| Salary basis | Last basic wage | Last basic wage |
| Partial years | Pro-rated by days | Pro-rated for partial years |
The big win under the new law: the first 3 years now earn a full month per year instead of just 15 days. That roughly doubles the payout for short-service workers.
Oman new gratuity law: worked examples
Let's compare old vs new on a OMR 400 last basic wage:
| Years | Old rules | New rules (2026) |
|---|---|---|
| 2 years | 15/30 × 400 × 2 = OMR 400 | 400 × 2 = OMR 800 |
| 3 years | 15/30 × 400 × 3 = OMR 600 | 400 × 3 = OMR 1,200 |
| 5 years | (15/30 × 400 × 3) + (400 × 2) = OMR 1,400 | 400 × 5 = OMR 2,000 |
| 10 years | (15/30 × 400 × 3) + (400 × 7) = OMR 3,400 | 400 × 10 = OMR 4,000 |
Try your own numbers with our free Oman gratuity calculator — it applies the current rules for you.
What "at least one full basic wage" means
The phrase "at least" in Royal Decree 53/2023 is important: one full basic wage per year is the minimum. Your contract or company policy can be more generous — but never less. And partial years are pro-rated, so 2 years and 6 months earns 2.5 × your basic wage, not just 2 ×.
Oman's transition to a savings system
Oman is moving expatriate end-of-service benefits into a formal savings and social protection system. In practice this means the benefit is becoming more structured and portable — closer to a provident-fund model than the old employer-pays-lump-sum approach. Keep your employment contract and every payslip: they prove your basic wage and service dates, which are the two inputs the new formula needs.
Resignation under the new law
The new framework applies the same one-month-per-year rate regardless of how your service ends. Always confirm with your contract, but the new law's plain reading gives resigning workers the same full benefit. See our guide on gratuity if you resign in Oman.
Common mistakes with the Oman new gratuity law
- Using the old 15-day rate. The first 3 years now earn a full month per year — the old 15-day bracket is gone under the new law.
- Using gross salary. The basis is your last basic wage — allowances don't count unless your contract says so.
- Forgetting pro-rating. Partial years count proportionally — 6 months earns half a month's wage.
- Ignoring the transition. If your service spans both eras, different periods may fall under different rules — check your dates.
- Not keeping payslips. Your last basic wage is the single number the whole calculation turns on.
Frequently asked questions
What is the Oman new gratuity law 2026?
Royal Decree 53/2023: expatriate workers get at least one full basic wage per year of service, pro-rated for partial years — replacing the old 15-days/30-days bracket system.
How was gratuity calculated in Oman under the old rules?
15 days' basic wage per year for the first 3 years, then 30 days per year after that — all based on the last basic wage.
Is the new Oman gratuity law better for workers?
Yes — especially for short service. The first 3 years now earn a full month per year instead of 15 days, roughly doubling the payout for workers with under 3 years of service.
Does the new law apply to partial years?
Yes — partial years are pro-rated. For example, 2 years and 6 months on an OMR 400 basic wage earns OMR 1,000.
What salary is used for Oman gratuity calculation?
Your last basic wage — the basic wage you were earning at the end of service, not including allowances unless your contract specifies otherwise.
Work out your own amount
Enter your dates and salary to see your end-of-service pay instantly.
More questions
- How is gratuity calculated in Oman?
- Do you get gratuity if you resign in Oman?
- Gratuity after 10 years in Oman
- Oman savings scheme 2027
Sources
This guide is based on Oman Royal Decree 53/2023 and the previous labour law framework. Verify the latest rules with the official sources below; not legal advice.
