Oman labour law for HR: end of service, overtime and annual leave
End-of-service gratuity (Article 61), overtime (Articles 71 and 72) and annual leave (Article 78) under Oman’s 2023 Labour Law, plus how the Social Protection Law will replace gratuity for non-Omani workers, with the calculators that estimate each.
Last updated · 2 min read
Under Oman’s Labour Law (Royal Decree 53/2023, in force since 31 July 2023), gratuity is at least one month’s basic wage for each year of service, pro rata, for workers outside the Social Protection Law. Overtime is basic plus 25% by day and 50% at night. Annual leave is at least 30 days, taken after six months.
Key takeaways
- Gratuity: at least one month’s basic wage per year, pro rata, with no minimum service (Article 61). The old 15-day rule was repealed in 2023.
- Non-Omanis move to a Social Protection Fund savings scheme (9% of basic wage) from a date the Fund sets, no later than 19 July 2027.
- Overtime with consent: basic plus 25% by day, 50% at night, 100% on a rest day or holiday (Article 71).
- Leave: at least 30 days a year, which cannot be taken before six months of service (Article 78).
This is general information to help you understand the topic. It is not legal advice. Rules and rates change: always check the official text on the relevant authority’s platform and consult a qualified adviser before acting.
Oman’s Labour Law was reissued by Royal Decree 53/2023 and has been in force since 31 July 2023, repealing the 2003 law. The figures below were checked on 20 October 2026 against the decree texts reproduced on qanoon.om, because the Ministry of Labour site could not be reached at the time. Check them against the Official Gazette before relying on them. This is general information, not legal advice.
End-of-service gratuity (Article 61)
Workers who are not covered by the Social Protection Law receive a gratuity of at least one month’s basic wage for each year of service, calculated on the last basic wage and paid pro rata for part-years. The law sets no minimum period of service. Service that began before the law took effect counts, and the text applies the one-month rate to all of it, although some advisers apply the old 15-day rate to service before 31 July 2023. Dismissal for the misconduct listed in Article 40 is without gratuity, and unpaid leave does not count as service.
Insured Omani workers receive no employer gratuity. For non-Omani workers, the Social Protection Law (Royal Decree 52/2023) replaces the gratuity with a savings scheme funded by a contribution of 9% of basic wage, from a date the Fund’s board sets, no later than 19 July 2027 after Royal Decree 60/2025. Gratuity for service before contributions start remains payable. The Oman gratuity calculator applies Article 61.
Overtime (Articles 71 and 72)
Overtime needs the worker’s consent, and total working time is capped at 12 hours a day. It is paid at the basic hourly wage plus at least 25% by day and 50% at night, or with time off in lieu. Work on a weekly rest day or public holiday earns the day’s pay plus 100% of the daily basic wage, or a compensatory day off. Where overtime is required without consent, for stocktaking or emergencies, Article 72 pays 50% by day, 75% at night and 200% on rest days or holidays. The Oman overtime calculator shows both.
Normal working time is 8 hours a day and 40 hours a week (Article 70), with two consecutive rest days a week (Article 77).
Annual leave (Article 78)
Annual leave is at least 30 days a year on full wage, and it cannot be taken before six months of service. A balance of up to 30 days may be carried over, and at least 30 days must be taken every two years. Non-Omani workers are entitled to a return air ticket. The Oman leave calculator shows the entitlement.
What to check
- Decide and record how you treat service before 31 July 2023.
- Track the Social Protection Fund’s start date for the savings scheme, and keep accrued gratuity on file until then.
- Record the worker’s written consent to overtime.
Sources
Frequently asked questions
Is Oman gratuity still 15 days a year for the first three years?
No. That was Article 39 of the 2003 law, repealed on 31 July 2023. Article 61 of the 2023 law gives at least one month’s basic wage for each year. Some advisers still apply the old rate to service before July 2023, so record the method you use.
Do Omani employees get gratuity from the employer?
Not if they are insured under the Social Protection Law. Article 61 covers workers who are not covered by that law.
When does the savings scheme replace gratuity for non-Omanis?
From a date the Social Protection Fund’s board sets, no later than 19 July 2027 after Royal Decree 60/2025. Gratuity for service before contributions start is still owed.
This is general information to help you understand the topic. It is not legal advice. Rules and rates change: always check the official text on the relevant authority’s platform and consult a qualified adviser before acting.
