Access top-tier candidates worldwide with our Global Talent Acquisition and recruitment services.
Onboard top talent quickly and compliantly with our Employer of Record service.
Adopt a human-centric approach to employee management, ensuring compliance.
Jump to:
Omani Rial is the official currency of Oman. Its currency symbol is ر.ع., OMR.
Estimated at 12.5% of employees salary.
Arabic is the official language of Oman and Modern Standard Arabic is taught in schools.
The population of Oman is 5.223 million (based on World Bank numbers as of 2021).
Employees are paid monthly.
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.
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.
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
| Social Security: | 12.5% of Omani national's salary |
| Insurance: | Typically 1% for insurance to work-related issues |
Healthcare
Education allowance
Ramadan and Eid allowances
Travel allowance
Mobile phone
Housing allowance
Probation periods in Oman must be detailed in the employee’s employment contract and should not exceed three months.
Emerald Technology can onboard employees in Oman within 48 hours.
It is permissible to have restrictive covenants contained in the contract of employment, provided that the employee has become acquainted with the employer’s clients or confidential information and the covenants are reasonably drafted in relation to duration, geographic scope and the nature of the business to be protected. Parties are permitted to include a liquidated damages clause in the contract of employment, as it is not possible to obtain an injunction in Oman. Non-compete clauses typically last no longer than 6-12 months, and customer non-solicit clauses no longer than 12-24 months. Employee non-solicits are also permissible and should last no longer than 12-24 months.
The Ministry of Health offers free universal health care to all Omani nationals and expatriates working in the government sector, including access to mental health services and associated medicines. The expatriate workforce in the private sector is mostly covered by employer-provided insurance.
The employee contributes 7% of their salary to Social Security, in addition to the employer contribution of 10.5%.
The employer is required to contribute as follows:
Social security: 10.5%
Occupational Injury and Disease: 1%
Job Security Fund: 1%
Women working in the private sector are entitled to 50 days’ maternity leave covering periods before and after delivery, with compensation at 100% of their regular income.
An employee is entitled to maternity leave three times throughout her employment in one organisation.
There are no provisions in Omani law regarding paternity leave.
An employee is entitled to 10 days’ sick leave at 100% of their regular income, paid by their employer. Any further sick leave is paid by Social Security at a reduced rate as
follows:
Week 3-4: 75% of basic salary
Week 5-6: 50% of basic salary
Week 7-10: 25% of basic salary
As the legal employer, Emerald Technology requires the following employee documents to ensure complete compliance:
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: | The termination process varies according to the employment contract in place and on the type of contract and reason for termination. Employers must have reasonable grounds for terminating an employee All notices must be provided in writing. When dismissing an employee, employers must grant severance pay based on the employee’s length of service. 0-3 years: 15 calendar days’ basic salary |
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. |
Following six months of continuous service at one organisation, employees are entitled to 30 days’ annual leave, paid at 100% of their regular salary.
In Oman, the minimum wage is 325 OMR per month, of which 225 OMR must be salary, and the remaining 100 OMR must be paid as a bonus.
The standard work week comprises 45 hours per week (9 hours per day). During Ramadan, work hours are reduced to 30 hours per week (6 hours per day). Any hours
worked outside of this must be paid as overtime and regulated by employment contracts / collective agreements. When an employee is asked to work overtime or during
holidays, this should not exceed 12 hours per day. All overtime hours in excess of 45 hours per week are paid at an overtime compensation rate of 125% of the employees’
regular salary for daylight hours and 150% for hours worked at night
Monthly.
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.
Oman does not have personal income tax.
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.
Start a conversation on how we can assist you to grow your remote team.
