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End of service provision in the accounts

How should we book expatriate gratuity in the Oman accounts?

The situation

Gratuity under the Labour Law builds up with service, so accounts carry a provision for the amount earned.

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

For 10 expatriates on OMR 700 basic with 3 years each under the 2023 law, the provision is about 10 x 700 x 3 = OMR 21,000. Split service under the old law where relevant. Auditors expect a schedule by employee.

What to do

  1. List staff with start dates and basic wage.
  2. Split old and new law service.
  3. Compute and book the provision.
  4. Give the schedule to the auditor.

We can do this for youStatutory audit and IFRS accounts for the tax return: OMR 900

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