Is End of Service Gratuity No Longer Available for Workers in Oman?
The Ministry of Labour reassured that end-of-service gratuity is still provided for workers in Oman, especially those not covered by the Social Protection Law. According to Article 61 of the Labour Law, employers must pay gratuity based on the worker’s basic salary and length of service. The calculation includes periods before and after the new law’s enactment on July 31, 2023. For those employed before this date, gratuity is calculated using both old and new rules, ensuring workers’ benefits are protected.
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Article 61 of the Oman Labour Law : “Without prejudice to the provisions of article 48 of this law, on the employment contract termination of workers who are not beneficiaries of the Social Protection Law the employer shall pay the worker a post service gratuity for the period of his service, not less than the basic wage for each year of his service. “
“The worker shall be entitled to the gratuity for fractions of the year proportional to the period of his service and the last basic wage of the worker shall be considered the basis for the calculation of the gratuity. The period of service that began before the enactment of this law shall be included within the period of service considered in determining the period for which gratuity is payable. “
“According to the article, the provisions of this article shall apply until the savings system stipulated in the Social Protection Law comes into force. The employer may settle the rights of the worker for the period of his service prior to the start of the savings. system to the savings system or to the worker, and in this case, the settlement must be calculated at the basic wage on the settlement date.”
For detailed information, visit Times of Oman
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