New Rule in Oman: End-of-Service gratuity for Domestic Workers (Ministerial Decision No. 574/2025)

Domestic workers in Oman such as housemaids, nannies, drivers, and caregivers—are set to benefit from a new regulation on end-of-service gratuity announced by the Ministry of Labour under Ministerial Decision No. 574/2025.

This law clearly outlines how domestic workers are to be compensated when their employment comes to an end, providing financial security and transparency for both workers and employers.

Key Points for Domestic Workers

1. Guaranteed End-of-Service Gratuity
   • When the employment relationship ends, the employer must pay the worker half a month’s wage for each year of service.
   • This applies to all domestic workers who complete the minimum service requirement.
2. Partial Years Count Too
   • If you worked for part of a year, you are still entitled to gratuity based on the months completed.
3. Deductions for Debts
   • If a worker owes money to the employer (for example, salary advances or other agreed amounts), the employer can deduct these from the gratuity before payment.
4. Effective Date
   • The gratuity is calculated only from the date this new regulation takes effect—not from years worked before it.
5. Two-Year Minimum Service
   • To qualify, a domestic worker must complete at least two (2) years of service. Workers who leave before completing two years are not entitled to gratuity.

For Domestic Workers: What This Means

• You are now legally protected with end-of-service pay, giving you more security when your contract ends.
• Even if you worked less than a full year beyond the two-year requirement, you will still get a proportional payment.
• This ensures your hard work and loyalty are recognized.

For Employers: What This Means

• Employers of domestic workers must plan ahead to meet gratuity obligations.
• The law provides clarity and fairness, reducing disputes between households and domestic staff.
• Deductions are allowed, but only for genuine amounts owed by the worker.

Final Word

With Ministerial Decision No. 574/2025, Oman has strengthened the rights of domestic workers, ensuring they are fairly compensated at the end of their service. This move not only improves the welfare of workers but also promotes a more transparent and balanced employment relationship inside Omani households.