Labour Ministry clarifies end-of-service gratuity
Muscat: The Ministry of Labour has issued a circular clarifying the method for calculating end-of-service gratuity for workers who are not covered by the Social Protection Law upon the termination of their employment.
According to the circular, workers whose employment contracts were concluded during the period when the previous Labour Law was in force will be entitled to end-of-service gratuity calculated at the rate of 15 days’ wages for each completed year of service during the first three years, and one month’s wage for each subsequent completed year of service.
The ministry further stated that for workers whose employment contracts were concluded under the provisions of the new Labour Law promulgated by Royal Decree No. 53/2023, the end-of-service gratuity will be calculated at a rate of not less than one basic wage for each completed year of service.
The circular also noted that, for the purpose of calculating the end-of-service gratuity, the employee’s last basic wage shall be adopted as the basis of calculation.
