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Oman Gratuity Formula:
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The Oman End-of-Service Gratuity is a legal entitlement for employees upon termination of employment, calculated based on basic salary and years of service. It serves as a financial recognition for the employee's service period.
The calculator uses the Oman gratuity formula:
Where:
Explanation: The formula calculates gratuity as half a month's basic salary for each year of service, based on the standard 15 days per year calculation.
Details: Accurate gratuity calculation is essential for ensuring employees receive their rightful end-of-service benefits, complying with Omani labor laws, and proper financial planning for both employers and employees.
Tips: Enter basic salary in OMR (without allowances), years of service (can include decimal values for partial years). All values must be valid (salary > 0, years > 0).
Q1: What is included in basic salary for gratuity calculation?
A: Only the basic salary component is used for gratuity calculation. Allowances, bonuses, and other benefits are excluded from this calculation.
Q2: How are partial years calculated?
A: Partial years of service are calculated proportionally. For example, 6 months of service would be calculated as 0.5 years in the formula.
Q3: Is there a maximum service period for gratuity?
A: Under Omani labor law, gratuity is typically calculated for the entire service period without a maximum limit, but specific conditions may apply.
Q4: When is gratuity payable?
A: Gratuity is payable upon termination of employment, whether due to resignation, end of contract, or employer-initiated termination.
Q5: Are there different rates for different service periods?
A: The standard rate is 15 days per year for the first 3 years, and 30 days per year thereafter, but this calculator uses the basic 15-day rate for simplicity.