Muscat: The Ministry of Labour has urged business owners to strictly follow the legal guidelines regarding end-of-service payouts for employees excluded from the Social Protection Law.According to an official directive on post-employment entitlements, management must disburse all required compensation immediately upon the conclusion of a worker's contract in compliance with statutory labour requirements. Key Calculation Criteria(i) Contracts under the Previous Labour LawFor agreements executed prior to the recent legal updates, severance is determined using a tiered structure:• Years 1 to 3: Equivalent to 15 days of pay per full year worked.• Year 4 onwards: Equivalent to 30 days of pay for every additional completed year.(ii) Contracts under the New Labour Law (Royal Decree No. 53/2023)For staff hired under the updated legislative framework, payouts must equal a minimum of one full basic salary for every year of completed service.Calculation BaseAll end-of-service benefits must be computed using the employee's final drawn basic monthly salary.
Ministry of Labour mandates strict adherence to end of service payout guidelines
According to an official directive on post-employment entitlements, management must disburse all required compensation immediately upon the conclusion of a worker's contract







