Guide to employment, payroll and benefits in

Oman

Rivermate offers complete payroll, benefits and compliance services for

Oman

01. Overview

Last updated: 

August 19, 2021

Currency
Omani Rial
Capital
Muscat
Ease of doing business
70
Language
Arabic
Population
5106626
GDP growth
-0.27%

02. Grow your team in

Oman

with Rivermate

Payroll, benefits, taxes, and compliance can be difficult to manage in

Oman

, particularly if you don't have established local relationships. You can hire employees in

Oman

effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global employment solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

03. Summary

Oman, officially the Sultanate of Oman, is a nation in Western Asia located on the southeastern coast of the Arabian Peninsula. It is the Arab world's oldest independent state. The nation shares land boundaries with the United Arab Emirates to the northwest, Saudi Arabia to the west, and Yemen to the southwest, as well as maritime borders with Iran and Pakistan. It is strategically located at the mouth of the Persian Gulf. The Arabian Sea on the southeast and the Gulf of Oman on the northeast shape the coast. The UAE surrounds the Madha and Musandam exclaves on all sides, with the Strait of Hormuz and the Gulf of Oman forming Musandam's coastal boundaries. The Omani Sultanate was a dominant empire in the Persian Gulf and Indian Ocean from the late 17th century, competing for dominance with the Portuguese Empire and the British Empire. Omani power or control stretched across the Strait of Hormuz to modern-day Iran and Pakistan, as well as as far south as Zanzibar, at its height in the 19th century. The sultanate fell under the rule of the United Kingdom as its strength waned in the twentieth century. The relationship between the two empires was founded on mutual gain for over 300 years. The United Kingdom recognized Oman's strategic importance as a trading center that protected their trading lanes in the Persian Gulf and Indian Ocean, as well as their empire in India. Muscat was historically the Persian Gulf's most important trading port. Muscat was also one of the most significant Indian Ocean trading ports. From 1970 until his death on January 10, 2020, Sultan Qaboos bin Said al Said was the hereditary ruler of the kingdom, which is an absolute monarchy. Following his death, his cousin, Haitham bin Tariq, was elected as the country's new ruler.Oman is a member of the United Nations, Arab League, Gulf Cooperation Council, Non-Aligned Movement, and Organization of Islamic Cooperation. It ranks 25th in the world in terms of oil reserves. The United Nations Development Programme rated Oman as the world's most improved country in terms of development over the previous 40 years in 2010. Tourism and the trade of fish, dates, and other agricultural products account for a large portion of the economy. Oman is classified as a high-income economy, and according to the Global Peace Index, it is the 69th most peaceful nation on the planet.

04. Public holidays

05. Types of leave

Paid time off

An employee is entitled to 30 days of paid yearly leave after six months of work.

Public holidays

Oman recognizes ten public holidays.

Sick days

Employees are entitled to 10 days of fully paid sick leave.After the first 2 weeks, social security law provides the employee with payment.Week 3-4 – 75% of their wagesWeek 5-6 – 50% of their wagesWeek 7-10 – 25% of their wages

Maternity leave

Employees who are pregnant are entitled to 50 days of paid leave. Employees with the same company are only permitted to take maternity leave three times.

Paternity leave

Paternity leave is not required by Oman labor laws.

Parental leave

Parental leave is not required by Oman labor laws.

Other leave

Marriage Leave: 3 daysBereavement Leave:3 days in the event of the death of the son, daughter, mother, father, wife, grandfather, grandmother, brother, or sister2 days in the event of the death of the uncle, aunt, uncle or aunt130 days for a working Muslim wife in the event of her husband’s deathHajj Pilgrimage Leave: 15 days to perform the Hajj pilgrimage once during his service period, provided that the worker has spent a continuous year in the service of the employer.Exam Leave: 15 days a year to take the exam for the Omani worker affiliated with the study in one of the schools, institutes, colleges, or universities.

06. Employment termination

Termination process

To fire an employee, the employer must present appropriate grounds for the termination, a notice period, and a gratuity for the employee's service.

Notice period

Both parties should provide a written notice of 30 days.

Severance pay

Severance pay is 15 calendar days' basic pay for the first three years of service and 30 calendar days' basic pay for each additional year of service.

Probation period

Probationary periods are not required, however, if set in the employment contract should not exceed 3 months.

07. Working hours

General

Nine hours per day with a minimum of 30 minutes break and a maximum of 45 hours per week with a maximum of two-day weekend. During the fasting month of Ramadan, Muslim employees' hours are limited to a maximum of 30 hours per week.

Overtime

Overtime is limited to three hours per day. A minimum of 25% per hour increase during the day, 50% during the evenings, and 100% for work on weekends and official holidays. Substituting replacement hours/days for overtime hours/days is subject to the employee's written approval.

08. Minimum wage

General

The minimum monthly pay is 325 OMR, with 225 OMR being salary and at least 100 OMR being bonus. The minimum wage is no longer tied to educational attainment.

09. Employee benefits

General

Omani residents are entitled to free universal healthcare from the state. Private insurance is required for expats.

Medical benefits, education allowances, mobile phone allowances, Ramadan and Eid allowances, travel allowances, and housing allowances are all common employment perks.

10. Why Rivermate as your Employer of Record / PEO?

Establishing an entity in

Oman

to hire a team takes time, money, and effort. The labor law in

Oman

has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into

Oman

simple and effortless. We can assist you with hiring your preferred talent, managing HR and payroll, and ensuring compliance with local legislation without the hassle of establishing a foreign branch office or subsidiary. Our PEO and Global Employer of Record solutions in

Oman

give you peace of mind so you can focus on running your business.

Please contact us if you'd like to learn more about how Rivermate can help you hire employees in

Oman

via our Employer of Record / PEO solution.

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