What every Oman HR manager should know about EOSB in 2026

End-of-service benefits (EOSB) are among the most frequently miscalculated figures on Oman payrolls. Here's how to get them right every time — and where teams usually slip up.

What governs EOSB?

Oman private-sector end-of-service benefits are governed by the Oman Labour Law. Since the 2020s reform, most insured employees are covered through mandatory social-insurance contributions, with legacy lump-sum gratuity still applying to service completed before an employee was brought under the scheme. The headline rule is simple in principle, but the details — which service counts as "legacy" and how it's paid out — are what trip teams up.

The core rule

For continuous service completed under the legacy scheme:

• One month of basic wage for each year of continuous service.
• Service after an employee is brought under the social-insurance scheme is covered by contributions instead of a lump sum.

"The rule of thumb: multiply one month's basic wage by the number of years of legacy service completed."

A worked example

Take an employee with a monthly basic wage of OMR 650 who has completed 6.4 years of legacy service, ending on contract completion:

• Total = 6.4 years × OMR 650 ≈ OMR 4,160.

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Let the system handle it

In Oman HRM, EOSB is computed automatically from basic wage, years of service and the leaving reason, with a transparent breakdown you can review before approval and payment — and support for Oman plus five other GCC countries.

Try the live calculator to see the same logic that's built into the product.