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The company will probably be required to pay an “end of service benefit” to the employee. Article 39 of the Labor Law (Royal Decree 35 of 2003) states that expatriate employees are generally entitled to an end-of-service gratuity payment on the termination of their employment contract and provides the calculation for the gratuity. The gratuity is calculated as follows:

Length of Employment:
1 to 3 years
Gratuity :15 days basic salary
for each year of service
Length of Employment:
3 years or more
Gratuity :1 month basic salary
for each year of service

The gratuities are calculated based on the final basic salary, and any fraction of a full year is paid on a pro rata basis. No end of service benefit applies to employees who have been employed for less than a year.

You will get 15 days of salary each year of the first three years and one month salary from fourth year on wards. You must complete minimum 1 year to be eligible to get end of service benefit.

If your basic salary is 500 OMR and you have worked for 7 years then the end of service indemnity benefit is calculated as below.


Daily salary = 500 x 12 / 365 = 16.43 OMR

15 days salary = 16.43 x 15 = 246.45 OMR

First three years benefit = 3 x 246.45 = 739.35 OMR

Next 4 years benefit = 4 x 500 = 2000 OMR

Total End of Service Benefit Indemnity = 739.35 OMR + 2000 OMR = 2739.35 OMR