HR and payroll in the Gulf

How is the end-of-service award calculated for expats in Oman?

By Mahmoud SaiedLast updated 27 October 20262 min read

The short answer

Under the Labor Law issued by Royal Decree No. 53 of 2023, an expatriate is entitled to one month's basic wage for each year of service from 26 July 2023. Service before that date is calculated under the previous law: 15 days for each of the first three years and 30 days for each year after that.

Step by step

  1. 1

    Split the service period

    Before 26 July 2023 and after it.

  2. 2

    The daily wage

    Monthly basic wage ÷ 30.

  3. 3

    The earlier period

    15 days for each of the first three years and 30 days for each year after that, under Royal Decree No. 35 of 2003.

  4. 4

    The later period

    30 days, that is one month's basic wage, for each year.

  5. 5

    Add the two parts

    Award = award for the earlier period + award for the later period, with part years counted pro rata.

A common mistake

Calculating the whole period under the new rule, or all of it under the old one, is a common mistake, since the law separates the two periods at 26 July 2023.

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