According to Times News Service, the Ministry of Labour Oman has directed employers to follow the legal requirements for end-of-service payments for employees excluded from the Social Protection Law. The ministry requires employers to calculate benefits under either the previous Labour Law or Royal Decree No. 53/2023, depending on the employment contract, and to pay eligible employees their compensation immediately after their contracts end.
Ministry of Labour Oman issues clear employer guidance
The ministry instructed business owners to follow the legal procedures for calculating and paying end-of-service benefits without delay. Employers must settle all eligible compensation once an employee’s contract concludes, in accordance with the applicable labour legislation.
The directive also reminds employers to determine benefits based on the legal framework that applies to each employment contract. This approach supports consistent implementation of labour regulations across different workplaces while protecting employee entitlements.
Oman End of Service benefit rules explained clearly
The Oman end of service benefits guidelines require employers to use different calculation methods based on when an employee signed the contract.
\Under the previous Labour Law, employers must pay employees 15 days’ basic salary for each completed year during the first three years of service. From the fourth year onward, the entitlement increases to 30 days’ basic salary for every additional completed year.
Employees hired under Royal Decree No. 53/2023 qualify for a minimum end-of-service payment equal to one full basic monthly salary for every completed year of service.
Ministry of Labour Oman clarifies benefit calculation
The ministry confirmed that employers must calculate all end-of-service payments using the employee’s final basic monthly salary. This calculation method applies to every eligible worker covered by the directive and ensures a consistent approach across organisations.
The guidance aims to improve compliance with labour legislation while helping employers apply end-of-service rules correctly and transparently.
Directive promotes Labour Law compliance
The latest instruction from the Ministry of Labour Oman provides businesses with a clear framework for managing end-of-service obligations. It also reinforces compliance with Oman end of service benefits guidelines, ensuring employers follow statutory requirements and employees receive their legal entitlements promptly at the end of their service.
