How to hire and pay employees in Oman

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Oman Facts and Stats

Currency

Omani Rial is the official currency of Oman. Its currency symbol is ر.ع., OMR.

Employer Costs

Estimated at 17-24% of employees salary.

Languages

Arabic is the official language of Oman and Modern Standard Arabic is taught in schools.

Population

The population of Oman is 5.223 million (based on World Bank numbers as of 2021).

Payroll frequency

Employees are paid monthly.

Hiring

Grow your team in Oman

No entity, no problem

To start growing your team in Oman, you must establish a local entity- including an account with a local bank, a local office and an address registered as a subsidiary. This
allows you to manage payroll, tax, benefits and compliance for your employees, but can take several months.

Emerald can hire and payroll your workers, quickly and compliantly with their ready to go entity. Make growing your team simple with Emerald as a global partner

Emerald can hire and payroll your workers, quickly and compliantly with their ready to go entity. Make growing your team simple with Emerald as a global partner.

Pros & Cons of hiring in Oman

In recent times, the Omani government has been changing its local policies to attract foreign investment. Tax exemptions, interest-free loans and free trade zones are some
simple examples of why Oman might be a good expansion territory in the Middle East region.

Considered a gathering spot of African and Asian empires, the country’s geographic location and 1700km long coastline has helped its economy grow steadily for several
years.

As in most countries in the Middle East, business traditions and hierarchy are very important and should always be respected. English is commonly used in business
settings.

For Omani nationals, employers need to pay 12.5% contributions to Social Security and 1% for insurance to work-related issues. This is not applicable to expatriates.

Why Oman is good for remote workers

Employees in Oman are mainly working in a traditional office or under a hybrid working model. Workers have the same rights regardless of their working location.

There is no income tax in Oman. Omani nationals must contribute 8% of their salary to Social Security.

Start growing your remote workforce now

Employer Costs
National Insurance Contributions: 14.1% of the gross salary. This covers social benefits like pensions, unemployment, and sickness benefits.
Pension Contributions:Typically between 2% to 7% of the gross salary, depending on the specific occupational pension scheme.
Vacation Pay:12% of the gross salary. This is paid as a vacation allowance, typically in the summer.
Employment

Probation

Probation periods in Norway can range anywhere between 1 to 6 months.

Emerald Technology can onboard employees in Oman within 48 hours.

Restrictive Covenants

Restrictive covenants in Norway are clauses in employment contracts that limit an employee’s ability to work for competitors, solicit clients, or use confidential information for a certain period after leaving the company, but they must be reasonable in scope, duration, and geography to be enforceable under Norwegian law.

Insurance
01.

Health Insurance:

In Norway, all citizens and residents are entitled to access numerous healthcare services without direct charges at the point of service, so the healthcare system is primarily funded through taxation, which could be general taxes or contributions to the National Insurance Scheme. Generally, health insurance contributions are not required as funding comes from general taxations, meaning that those who receive higher incomes, contribute a larger amount to the funding of the healthcare system.

02.

Social Security:

Social security contributions in Norway provide funding for many benefits such as healthcare, pensions and family support, so they are mandated by law and managed by the Norwegian National Insurance Scheme. Employers contribute around 14.1% of each employee’s gross salary and employees contribute around 8.2% of their gross income.

Leave Policy
01.

Maternity Leave:

In Oman, mothers are entitled to up to 49 weeks of maternity leave with full pay or 59 weeks with 80% pay, depending on the choice of leave duration. This leave can start up to 12 weeks before the expected due date.

02.

Paternity Leave:

Employees are entitled to 2 weeks of paternity leave post-birth. There is no mandatory law for employers to pay a salary during this period.

03.

Parental Leave (if applicable):

The combined parental leave available to parents is up to 49 weeks at full pay or 59 weeks at 80% pay. This leave can be shared between parents and includes both maternity and paternity leave.

04.

Sickness Leave:

In Oman, the first 16 days of sickness leave are covered in full by the employer. Beyond this point employees will receive their full pay from the National Insurance Scheme.

Onboarding

Onboarding

As the legal employer, Emerald Technology requires the following employee documents to ensure complete compliance:

Emerald Technology can onboard employees in Oman within 48 hours.
Termination

Resignation and Dismissal

When an employer dismisses an employee it must be with just cause and they must give them notice. The notice period starts from the day after the employer notifies the employee of the termination. Notice must be given in accordance with the following schedule at a minimum:

Notice Periods:

“Notice Periods: The notice period in Norway is formulated on the employee’s length of service:
Less than five years: 1 month,
Five years or more: 2 months,
Ten years: 3 months, Ten years and 50 years and above: 4 months,
Ten years and 55 years and above: 5 months,
Ten years and 60 years and above: 6 months.

Severance

If an employee is made redundant, they are entitled to a payment based on years of continuous service.

Severance Pay:

Severance pay is not legally required in Oman unless specified in the employment contract or collective agreements. However, employers may offer severance packages based on company policy or negotiated terms.

Time off

Statutory Time off

Employees in Oman are entitled to 25 working days of paid annual leave per year. This includes a statutory holiday allowance of 12% of the annual salary.

Public Holidays

  • New Year’s Day,
  • Maundy Thursday,
  • Good Friday,
  • Easter Monday,
  • Labor Day,
  • Constitution Day,
  • Ascension Day,
  • Whit Monday,
  • Christmas Day,
  • Boxing Day,
Emerald Technology can onboard employees in Oman within 48 hours.
Salary / Taxes

Work, Pay and Taxes

01.

Minimum Wage:

325 OMR per month.

02.

Working Time and Overtime:

The standard working week in Oman is 40 hours over 7 days. Employees are entitled to receive 140% of their normal wages for overtime, with the rate doubling for overtime on weekends. Overtime is capped at 10 hours per week and 25 hours per month.

03.

Salary Payments:

Monthly.

04.

Bonuses in Oman:

Bonuses and additional salary payments, such as a 13th or 14th-month salary, are not legally required but may be offered by employers as part of their compensation packages or collective agreements.

05.

Income Tax:

  • Up to 200,000 0%,
  • 200,001 – 600,000 1.7%,
  • 600,001 – 1,000,000 4.0%,
  • Over 1,000,000 13.4%.
Country Oman

Worker misclassification in Oman

Similar to other countries, Oman has strict rules on classifying individual contractors and full-time employees differently. Misclassifying your workers can put your business at risk of fines.

Group 1977

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