The gratuity provision in the Sultanate of Oman is applicable to expatriate employees only. Regardless of whether short-term, Fixed-term, Long-term contracts or indefinite, employees in Oman are entitled to receive their end-of-service benefits.
Gratuity is a monetary payment eligible to an employee as a lump sum at the end of his tenure provided that the period of service exceeds one year. HR Chronicle is the Leading Cloud-based Human Resource and Payroll Management Software in the GCC Region. HR Chronicle has all the options to do the final settlement calculation automatically as per the rules of the Sultanate of Oman.
The gratuity is calculated based on the expatriate worker’s last basic salary.
Article – 39 of Sultanate of Oman Labor Law
“On the termination of the relation of work of the workers who are not beneficiaries of the Social Insurance Law, the employer shall pay the worker a post-service gratuity in the amount of the wage of fifteen days for each year of service for the first three years, and the wage of one month for each of the following years. The worker shall be entitled to the gratuity for a fraction of the year proportionate to the period of his service and the last basic wage of the worker shall be considered the basis for the calculation of the gratuity.
The continuous period of service, which commenced prior to the enforcement of this law shall be included in the period of service which is considered for determining the period for which gratuity is payable.
The said gratuity shall not be payable if the duration of service is less than one year.”
Termination of an employment contract can be in terms of Resignation, Death, Non-renewal of the contract or termination by the employer. In all these cases, the employer is bound to pay end-of-service benefits.
For legal advice always consult a legal professional like a lawyer or the Ministry. The contents of this article do not constitute legal advice.
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HR Chronicle is the Leading HR and Payroll Management Software in the GCC Region. HR Chronicle is designed as per GCC Labor law and policies. It is a SaaS HR System, with unlimited remote support. No manual calculations, no paperwork, no last-minute confusion. With HR Chronicle manage your company’s HR and payroll processes efficiently.
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