Oman's New Savings System for Expats: What Replaces Gratuity

By Ammar Aslam · Updated September 29, 2026

Oman is changing how expatriate workers receive end-of-service benefits. Instead of a lump-sum gratuity paid by the employer when you leave, a new savings system will collect monthly contributions into an account in your name. Here is what we know.

What is the savings system?

Under Oman's Social Protection Law, employers of non-Omani workers will pay 9% of the monthly basic wage into an individual savings account for each worker. The money is invested and the worker receives the balance, with returns, when leaving.

When does it start?

The start was postponed. According to reports on Royal Decree 60/2025, the system becomes mandatory in July 2027. Check the Social Protection Fund and Ministry of Labour announcements for the final date.

Gratuity until then

• Service from 31 July 2023: one month's basic wage for each year of service.
• Service before 31 July 2023: 15 days' basic wage per year for the first three years, then one month per year.

Use our Oman gratuity calculator, which splits your service at 31 July 2023 automatically.

How payouts are expected to work

• Paid when employment ends and the worker does not start a new job within a set period, when the worker leaves Oman, or in case of death or permanent disability.
• The worker can choose a lump sum or instalments.
• If a worker dies, the balance goes to their heirs.

What you should do

• Keep your salary slips and contract, which show your basic wage.
• Once the system starts, check that contributions appear in your account.
• Ask HR how service before the start date will be settled.

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