EOS or End of Service is the payment that an employee receives from the company that they are working at after they have completed 12 months of continuous service to them or after they leave the company as a compensation of their service.
The calculation of an employee’s End of Service payment in Oman depends in which situation they are coming out from. For example, if the reason of the end of their service is because they have reached the retirement age their benefit would be computed as follows:
Years of service (No. of months / 120) x Last Basic Salary x Pension
If the employee is an Omani National employed in a Government Sector, the Law of Pensions and End of Service Benefits dictates that they are entitled to a monthly pension salary from the date when they have reached the retirement age. However, if the Omani National wasn’t able to complete the legal period of pension entitlement which is 10 years, the employee would then be entitled gratuity in accordance to the Article 30 and 32 of the said law. The calculation would then be:
Settlement for the work days (number of days in service/365 x Last Basic Salary x gratuity)
+
Settlement for the months and years of service (years of service x Last basic salary x2)
Another case is when an employee decides to resign but is already nearing the retirement age, five years or the remaining period before they reach the retirement age is added to their service period or whichever is lesser. The computation would then be as follows:
Settlement for the days (number of days /356 x Last Basic Salary x pension)
+
Settlement for the months and years (number of years x Last Basic Salary x pension)
If the reason for the end of the employee’s service is death, the employee is entitled for a pension equal to 50% of his basic salary or pension. The computation would then simply be:
Last Basic Salary x 50%