Oman Leave Encashment 2026: Basic Wage In-Service, Gross Wage at End of Service
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Oman's 2023 Labour Law sets a 30-day annual leave entitlement, with an unusual twist: the wage basis for encashment changes depending on when it happens.
The entitlement
You earn 30 days of paid annual leave per year, and can retain a balance of up to 30 days carried forward.
Two different payout bases
If your employer agrees to cash out unused leave while you are still working, it is paid at your basic wage only, and needs your written consent. But when your service ends with leave still unused, the law makes encashment mandatory, and pays it at your comprehensive (gross) wage — a materially better rate.
Worked example
OMR 700 comprehensive wage, 20 unused leave days at end of service: (700 ÷ 30) × 20 = OMR 467.
Frequently asked questions
How much annual leave do Oman employees earn?
30 days per year under Royal Decree 53/2023, in force since 31 July 2023.
What salary is used for Oman leave encashment?
It depends on when: optional encashment during employment (if your employer agrees) is paid at basic wage only. Mandatory encashment when your service ends uses your comprehensive (gross) wage.
Can I cash out leave while still working in Oman?
Only if your employer agrees and you consent in writing — and only at basic wage, unlike the gross-wage rate used at end of service.
Is there a cap on carrying leave forward?
Yes — you may retain a balance of up to 30 days; the law also requires taking at least 30 days of leave at least once every 2 years.