Article 39 of Omani Labour Law Royal Decree 35/2003 states that all employees are entitled to a Post Service Gratuity payment. Omani employees should all be registered under the Social Insurance Scheme with PASI (Public Authority for Social Insurance)I, Employers don’t need to make provisions for those payments. However, Employers need to make provisions for their expat staff and their end of service gratuity to be paid upon their termination/resignation.
The Calculation
For the first three years:
BASIC WAGE x 0.5 x NUMBER OF YEARS WORKED
From 3+ Years:
BASIC WAGE x 1 x NUMBER OF YEARS WORKED
*The basic wage used for the calculation shall be the basic wage the employee last received.
Article 39 also says that a Gratuity shall not be paid if the duration of continuous employment is less than 1 year.
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Dalia Sharabati
I am a Legal Consultant at a local law firm in Oman. I completed my LLB in the UK and then completed my LLM in Commercial Legal Practice and Legal Practice Course at BPP London. I am a strong believer of easily accessible legal advice to all members of the community.