Does Oman levy personal income tax on employment wages?

No. The Sultanate of Oman currently imposes 0% personal income tax on individual employment earnings.

How is the End of Service Gratuity calculated under the new Oman Labour Law?

Under Royal Decree No. 52/2023, non-Omani workers who complete at least one full year of continuous service are entitled to a gratuity calculated at the rate of one full month of basic salary for each year of service.

What is the Social Protection Fund (SPF) contribution for expatriate workers?

Under the Social Protection Law (Royal Decree No. 52/2023), expatriates contribute 1% of basic salary to the Job Security Scheme branch of the Social Protection Fund.

Oman End of Service Gratuity Calculator 2026: SPF Rules

Oman Expat Net Salary & End of Service Gratuity 2026: SPF & Royal Decree Rules

Calculate take-home pay and severance indemnity in the Sultanate of Oman for 2026: 0% individual income tax, the Social Protection Fund (SPF) system, and Royal Decree No. 52/2023 gratuity rules.

Simulequa Oman Editorial Desk

مؤلف موثق

Omani Labour & Social Protection Specialist

تاريخ النشر٢١ سبتمبر ٢٠٢٦

وقت القراءة8 min

Understanding Employment Compensation and Gratuity in Oman (2026)

Following comprehensive economic modernizations, employment relationships in the Sultanate of Oman are governed by the landmark Labour Law (Royal Decree No. 52/2023) and unified under the Social Protection Fund (SPF).

Income Tax on Wages: 0%.
SPF Job Security Contribution: 1% deducted from basic salary.
All wages are monitored through the Ministry of Labour's electronic salary transfer system, ensuring prompt monthly deposit into Muscat-based bank accounts.

2. Verified Numerical Scenario: 4 Years of Service at OMR 1,800 Basic

Consider an expatriate specialist employed in Muscat earning a monthly basic wage of OMR 1,800 (with an additional OMR 700 housing allowance = OMR 2,500 total package) completing 4 full years of service:

| Entitlement Item | Calculation Basis | Payout Value (OMR) | |---|---|---| | Monthly Basic Salary | Contractual basic rate | OMR 1,800.00 | | SPF Employee Contribution (1%) | 1% of basic wage | -OMR 18.00 | | Net Monthly Cash in Hand | OMR 2,500 package minus OMR 18 SPF | OMR 2,482.00 / month | | Gratuity Rate per Year of Service | 1 full month of basic wage | OMR 1,800.00 / year | | Number of Completed Years | 4 continuous years | 4 years | | Total Statutory End of Service Gratuity | 4 × OMR 1,800.00 | OMR 7,200.00 |

Payout Security:

Upon repatriation or contract completion, this employee receives OMR 7,200.00 (equivalent to approximately $18,700 USD) paid directly as a lump sum terminal settlement, completely exempt from Omani taxation.

3. Regulatory Sources & Verification

Labour Legislation: Sultanate of Oman, Royal Decree No. 52/2023 Promulgating the Labour Law (Articles on End of Service Gratuity). Verified on 21/09/2026.
Social Protection Fund Authority: Royal Decree No. 50/2023 Promulgating the Social Protection Law. Verified on 21/09/2026.

Compute your exact gratuity settlement in Oman:

Oman End of Service Gratuity Calculator