Is overtime calculated on basic salary or gross salary in Oman?
On basic salary. Allowances such as housing and transport are excluded from the overtime rate.
Calculate overtime pay under Oman Labour Law (Royal Decree 53/2023). Enter the basic monthly salary and overtime hours, and the calculator applies the three legal rates — 1.25x for daytime overtime, 1.5x for night work between 9 PM and 5 AM, and 2x for weekly rest days and public holidays.
Overtime pay at the rates set by Royal Decree 53/2023 — 1.25× daytime overtime, 1.5× night work (9 PM – 5 AM), and 2× weekly rest days & public holidays.
| Hourly rate | — |
| Regular-day overtime (1.25×) | — |
| Weekly rest day / holiday overtime (2×) | — |
| Night overtime (1.5×) | — |
| Total overtime pay | — |
| Total monthly pay (basic + overtime) | — |
Calculated on basic salary per Oman Labour Law (Royal Decree 53/2023). This is a guide, not legal or payroll advice — confirm your company's rate basis with HR. Free calculator by TAOMAN — our attendance software calculates this automatically from your biometric punches.
Calculation method
Standard working hours under Royal Decree 53/2023 are 8 hours per day and 40 hours per week. Time worked beyond that is overtime, and Article 71 calculates the additional wage using the employee's basic salary. Housing, transport, and other allowances are not included in the overtime rate.
First, the monthly salary is converted to an hourly rate. A common formula in Oman divides the basic salary by 30 days and then by 8 hours — that is, by 240. Some companies calculate on 26 working days instead, dividing by 208, which produces a slightly higher hourly rate. The calculator supports both; confirm the basis used in your employment contract or payroll policy.
The hourly rate is then multiplied by the overtime hours and the legal rate for when those hours were worked:
| When the overtime was worked | Rate |
|---|---|
| Daytime overtime beyond normal working hours | 1.25x hourly rate |
| Night overtime, 9 PM to 5 AM | 1.5x hourly rate |
| Weekly rest days and public holidays | 2x hourly rate |
Example
An employee has a basic salary of 400 OMR. On the 30-day basis, the hourly rate is 400 ÷ 240 = 1.667 OMR. In one month they work 6 daytime overtime hours on regular days, 4 hours on a weekly rest day, and 3 night overtime hours between 9 PM and 5 AM.
| Item | Calculation | Amount (OMR) |
|---|---|---|
| Daytime overtime | 1.667 x 1.25 x 6 hours | 12.500 |
| Weekly rest day overtime | 1.667 x 2 x 4 hours | 13.333 |
| Night overtime | 1.667 x 1.5 x 3 hours | 7.500 |
| Total overtime pay | — | 33.333 |
| Total monthly pay | 400 basic + 33.333 overtime | 433.333 |
Ramadan schedule
During Ramadan, working hours for Muslim employees are capped at 6 per day and 30 per week. Overtime therefore starts after 6 hours in a day, not 8. The hourly rate formula itself does not change — only the threshold moves. This is one of the most common payroll mistakes we see each year: schedules left on the standard 8-hour profile in the first week of Ramadan, flagging half the workforce short on hours or miscalculating their overtime.
Shift handling
The night window runs from 9 PM to 5 AM, which crosses midnight. Payroll systems that assign hours to calendar dates split a night shift into two short days and can miss the night overtime hours entirely. If you run night shifts, your attendance system must credit hours to the shift they belong to, not the date the clock showed.
Important limits
This calculator follows the normal overtime rates in Article 71 of Royal Decree 53/2023 and calculates on basic salary. It does not handle compensatory time-off agreements, emergency overtime under Article 72, sector-specific exemptions, or employment contracts with terms above the legal minimum. For those cases, speak to your HR or legal advisor.
Ministerial Decision 729/2024 requires private-sector wages to be transferred through the Wage Protection System (WPS), subject to its exemptions and implementation requirements. Calculated overtime should therefore flow into your normal payroll and WPS process rather than being handled separately in cash.
Attendance automation
This page exists because we see the same overtime errors in payroll every month — and fixing them by hand is exactly what attendance software is for. Our biometric attendance systems capture the punches, and the attendance software applies these rates, the Ramadan caps, and night-shift midnight handling automatically, producing payroll-ready output for your WPS process.
Questions
On basic salary. Allowances such as housing and transport are excluded from the overtime rate.
For normal overtime agreed with the worker, the minimum rates are 1.25 times the hourly rate for daytime overtime, 1.5 times for night overtime between 9 PM and 5 AM, and 2 times for work on weekly rest days and public holidays under Royal Decree 53/2023.
A common method divides the basic monthly salary by 30 days and then by 8 hours, or by 240 in total. Some companies use 26 working days, or 208 hours. A 400 OMR basic salary is 1.667 OMR per hour on the 30-day basis.
For Muslim employees, the maximum is 6 hours per day and 30 hours per week. Overtime starts after the sixth hour in a day during Ramadan.