Oman End of Service Calculator — Old Law + New Law, Split Correctly
Oman changed its end-of-service rate when the new Labour Law (Royal Decree 53/2023) took effect on 31 July 2023. If your service spans that date, one flat formula is wrong. This calculator splits your service at the cutoff — old-law tiers before, one month of basic salary per year after — and adds the two parts, exactly as the law preserves them.
| Period | Service | Amount (OMR) |
|---|
Compare the OMR exchange rate and transfer fees before you move your end-of-service money — small rate differences cost hundreds on a full settlement.
How end of service works in Oman
- Service from 1 Aug 2023 (new law, Art. 61): one month of basic salary for each year of service, pro-rata for part years
- Service up to 31 Jul 2023 (old law): 15 days of basic salary per year for the first 3 years, then one month per year
- Daily rate = monthly basic salary ÷ 30
- Basic salary only in both periods — allowances are excluded
Worked example
Fatima joined on 1 Jan 2021, her last day is 31 Dec 2026, basic salary OMR 600 (daily = 600 ÷ 30 = OMR 20).
Old-law period (Jan 2021 – Jul 2023 ≈ 2.58 years, all within the first 3): 15 days × 2.58 ≈ 38.7 days → ≈ OMR 775
New-law period (Aug 2023 – Dec 2026 ≈ 3.42 years): 30 days × 3.42 ≈ 102.5 days → ≈ OMR 2,050
Total ≈ OMR 2,825
Frequently asked questions
How is end of service calculated in Oman?
Service after 31 July 2023 earns one month of basic salary per year (Royal Decree 53/2023, Article 61). Service before that date keeps the old law: 15 days of basic salary per year for the first 3 years and one month per year after. The two parts are added together.
Why does this calculator split my service at July 2023?
Oman's new Labour Law took effect on 31 July 2023 and changed the end of service rate. Rights earned before that date are preserved under the old formula, so an accurate calculation must split your service into two periods. Most online calculators ignore this and give a wrong total.
Is Oman replacing end of service benefits with a savings scheme?
Yes, a mandatory savings scheme for expatriate employees is planned to replace the lump-sum system, but its start was postponed to 19 July 2027. Until then, end of service is still paid under Article 61 as calculated here.
Which salary is used in Oman — basic or total?
The end of service benefit in Oman is calculated on your basic salary, for both the old-law and new-law periods. Allowances are not included.
What is the minimum service to receive end of service in Oman?
Under the old law the benefit required at least one year of service; the new law preserves accrued rights on the same basis. Short service below one year is normally not entitled, subject to the terms of your contract and the circumstances of termination.
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Disclaimer: estimate based on Oman Royal Decree 53/2023 (Art. 61) and the prior labour law for earlier service. Service periods are calculated from the dates you enter (365 days = 1 year). General information, not legal advice.