Basic wage base
Is gratuity on basic or gross?
The situation
Gratuity is computed on the employee's last basic wage, unless the contract gives a wider base.
The law
- Labour Law RD 53/2023 and MOL circular (August 2026) on gratuity: Non-Omanis not under the Social Protection Law: at least one basic wage per year under the new law; old law periods 15 days a year for the first 3 years then one month
What it means for you
The MOL circular uses the employee's last basic wage. With OMR 700 basic and OMR 300 allowances, gratuity uses OMR 700 unless the contract says otherwise. For 4 completed years under the new law that is OMR 2,800.
What to do
- Read the contract for the gratuity base.
- Use last basic wage unless the contract says more.
- Compute the amount.
- Explain the basis to the employee.
We can do this for youEnd of service gratuity for non-Omani staff: OMR 50