MUSCAT : In a circular issued on the application of end-of-service benefits, the ministry stated that employers must pay gratuity upon termination of employment relationships in accordance with the applicable Labour Law provisions.

The ministry clarified that for workers whose employment contracts were concluded during the period when the previous Labour Law was in force, end-of-service gratuity shall be calculated at 15 days’ wages for each completed year of service during the first three years, followed by one month’s wages for each subsequent year of service.

For workers whose contracts were concluded under the new Labour Law issued by Royal Decree No. 53/2023, the gratuity shall be calculated at not less than one basic wage for each completed year of service, the ministry said.

The circular added that the employee’s last basic wage shall be used as the basis for calculating the end-of-service gratuity.

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