Muscat – Ministry of Labour (MoL) has issued an official circular detailing the proper application of the end-of-service gratuity for workers who are not covered by the Social Protection Law.

For contracts concluded while the previous labour law was in force, the gratuity is calculated at the rate of fifteen days’ wages for each year completed during the first three years, and one month’s wages for each subsequent year.

For contracts concluded under the provisions of the new Labour Law promulgated by Royal Decree No. 53/2023, the gratuity is calculated at a rate of not less than one basic wage for each completed year of service.

Furthermore, the circular specifies that the employee’s last basic wage must be adopted as the fundamental basis for all final calculations upon the termination of the employment relationship.