Savings scheme replacing gratuity
Will the savings scheme replace gratuity?
The situation
A 9 percent employer savings scheme is due by 19 July 2027.
The law
- Social Protection Law, Royal Decree 52/2023 (savings system for non-Omanis): Employer savings contribution of 9 percent of basic wage, start date set by the Fund board, no later than 19 July 2027
- 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 savings system will have employers pay 9 percent of basic wage, starting by 19 July 2027 at the latest. Periods covered by savings contributions may no longer build gratuity, while earlier periods keep it. Watch for the Fund's rules on the switch.
What to do
- Watch for the Fund board start date.
- Split service at the start date.
- Keep gratuity for earlier periods.
- Pay savings contributions after the start.
We can do this for youEnd of service gratuity for non-Omani staff: OMR 50