SPF vs End-of-Service Gratuity in Oman (2026): Who Gets What
Reviewed by Fahad Alamri, Founder
Published · Last updated
Who gets the Social Protection Fund and who gets Article 61 gratuity, side by side: what each costs the employer and the employee, on which wage, when it is paid and which dates change for non-Omani staff between 2026 and 2028, with the law for each.
Key takeaways
- Omani employee: Social Protection Fund, 8% employee and 14.5% employer on the gross wage; no gratuity from the company
- Non-Omani employee: Article 61 gratuity, one basic month per year of service, on basic pay only
- The OMR 3,000 monthly ceiling applies to the pension and work-injury branches only
- Non-Omani branches: sick leave from 19 July 2026, savings no later than 19 July 2027, work injury from 19 July 2028
- Service before 31 July 2023 follows the older gratuity rate
The short version
Omani employees belong to the Social Protection Fund: the employee pays 8% and the employer 14.5% of the gross wage, and the company owes no gratuity. Non-Omani employees outside the fund's pension get end-of-service gratuity under Article 61 of the Labour Law: one basic month per year of service, paid when employment ends. The fund brings non-Omani staff in branch by branch from 2026 to 2028.
Omani and non-Omani employees, side by side
Same rows for both. Sources: Royal Decree 53/2023 (Labour Law), Royal Decree 52/2023 and Royal Decree 60/2025 (Social Protection Law).
| Omani employee | Non-Omani employee | |
|---|---|---|
| What covers them | The Social Protection Fund. | Article 61 gratuity from the employer, plus the fund's branches as they start. |
| What the employee pays | 8% of the gross wage. | Nothing to the fund until a branch they join charges them. |
| What the employer pays | 14.5% of the gross wage. | Gratuity of one basic month per year of service; plus the fund's branches as they start. |
| Wage base | Gross wage: basic plus fixed allowances. | Basic pay only, for gratuity. Allowances are excluded. |
| Ceiling | OMR 3,000 a month, on the pension and work-injury branches only. | Not applicable to gratuity. |
| When it is paid | Contributions by the 15th of the following month (Articles 58 and 155). | Gratuity when employment ends; pro rata for part of a year. |
| Sick-leave branch | From 19 July 2026. | From 19 July 2026, for the categories the fund's board sets (Article 121). |
| Savings branch | Not applicable. | Employer pays 9% of the basic wage, no later than 19 July 2027; service from that day moves to the fund. Service before it stays under Article 61. |
| Work-injury branch | In force. | From 19 July 2028 (Royal Decree 60/2025). |
| Service before 31 July 2023 | Not applicable. | Older rate: 15 days' basic wage a year for the first three years, then 30 days (Ministry of Labour clarification). |
What changes on 19 July 2027
When the savings branch starts for expatriates, the employer begins paying 9% of the basic wage to the fund, and service from that day is covered by the fund instead of Article 61. Gratuity accrued before that day stays owed under Article 61. See the gratuity guide for five worked cases and the Social Protection Fund guide for the rates.
Choose by who the employee is
- For an Omani employee, register and contribute to the fund. The company owes no gratuity. SPF in payroll.
- For a non-Omani employee, accrue Article 61 gratuity on basic pay now, and add each fund branch from its start date.
- For a company with both, SmartPRO applies the right rule to each employee. Payroll for Oman.
Frequently asked questions
- Do Omani employees get end-of-service gratuity from the company?
- No. They are covered by the Social Protection Fund, to which the employer pays 14.5% and the employee 8% of the gross wage.
- What is the gratuity for an expatriate employee in Oman?
- One basic month per year of service under Article 61 of the Labour Law, on basic pay only, paid when employment ends.
- When does the Social Protection Fund apply to expatriates?
- Branch by branch: sick leave from 19 July 2026 for the categories the board sets, employer-paid savings no later than 19 July 2027, and work injury from 19 July 2028.
- Does the OMR 3,000 ceiling apply to every branch?
- No. It applies to the pension and work-injury branches only.
- What happens to gratuity when the savings branch starts?
- Service from that day is covered by the fund. Service before it stays under Article 61.
Official sources
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