4. Types of leave

There is no information about the types of leave for this country.
Learn more about 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 wages

Week 5-6 – 50% of their wages

Week 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

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 wages

Week 5-6 – 50% of their wages

Week 7-10 – 25% of their wages

Parental leave

Parental leave is not required by Oman labor laws.

Other leave

Marriage Leave: 3 days


Bereavement Leave:

3 days in the event of the death of the son, daughter, mother, father, wife, grandfather, grandmother, brother, or sister

2 days in the event of the death of the uncle, aunt, uncle or aunt

130 days for a working Muslim wife in the event of her husband’s death

Hajj 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.

5. Employment termination

There is no information about employment information for this country.

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.

Probation period

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

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.

6. Working hours

There is no information about the working hours for this country.

General working schedule

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.

7. Minimum wage

There is no information about the working hours for this country.

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.

8. Employee benefits

There is no information about the working hours for this country.

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.

9. Taxes

There is no information about the working hours for this country.

Corporate tax

The income tax rate is the same for all kinds of business organizations, regardless of whether they are corporate or unregistered.

The income tax rate is 15% for all taxpayers except Omani proprietorships (‘establishments') and limited liability corporations (LLCs) that meet the requirements of small and medium businesses (SMEs).

Individual income tax

Oman presently does not have a personal income tax (PIT) legislation in place.

VAT, GST and sales tax

On goods and services provided in Oman, the normal rate of 5% VAT shall apply, subject to certain exclusions and zero rates established by Oman VAT legislation.

VAT is not levied on exempt supplies, and the input tax cannot be recovered. Certain financial services, for example, are examples of exempt suppliers.

Zero-rated supplies are subject to 0% VAT, and the provider may recoup the cost of the purchases made. Export of products and services outside of Oman, for example, is an example of a zero-rated supply.

10. VISA and work permits

There is no information about the working hours for this country.

Foreign visitors to Oman are normally required to get entrance visas. Tourist visas, work visas, relative/friend visit visas, family joining/resident visas, investor resident and student resident visas, and transit visas are the most common types of visas issued in Oman.

They are available as single-entry, double-entry, or multiple-entry visas for stays of up to 90 days in intervals of 180 days. The single-entry visa allows for just one visit, but the double-entry visa allows for two visits within defined durations. A multiple-entry visa permits for repeated trips to the nation in a row.

11. Employer Of Record service terms

There is no information about the working hours for this country.

Employment contracts

In Oman, employment contracts should be written in Arabic, and pay should be paid in the legally circulating currency. However, if the contract was written in a language other than Arabic, an Arabic translation document must be provided to both the employer and the employee. In circumstances of illiteracy or if the employee is not proficient in the language of the contract, the Labor Office must certify the contract. The employer is required to provide the employee with a receipt for all papers provided by the employee.

To work in Oman, all foreign workers must get a work permit. Before being eligible to apply for a foreign worker visa, the petitioning employer must have entered the country legally and met the standards outlined in the Expatriates Residence Law.

Minimum assignment length

In Oman, there are two sorts of contracts: indefinite full-time and definite part-time. A full-time employment contract is for an indeterminate duration with a specified minimum number of hours per day, while a part-time employment contract is for a defined maximum number of hours per day. The latter is used for labor that is either temporary or casual and cannot last more than six months. If a definite contract is continued to be performed after its duration has expired, the contract is considered renewed as an indefinite full-time contract.

Payment currency

Omani Rial

13.Opening a subsidiary in Oman

There is no information about the working hours for this country.

How to set up a subsidiary

Setting up an Oman subsidiary must begin with answering several questions about your organization. We suggest beginning with the actual location of your office. Different regions or places in Oman may have their own subsidiary laws that might affect your incorporation. That is why it is usually a good idea to do study in these areas before incorporating.

Depending on your business's aims and requirements, a subsidiary might take numerous distinct forms. Oman subsidiary laws will enable you to organize as a limited liability company (LLC), joint stock company, branch, commercial agency, or commercial representative office. Many businesses opt to establish as an LLC because of the advantages it provides to both the subsidiary and the parent company.

The following actions are required to establish an Oman subsidiary:

1. Paying your first capital deposit to the bank

2. Registering with the Ministry of Commerce and Industry for the Commercial Registry

3. Notifying the Finance Ministry of your incorporation and tax requirements

4. Enrolling workers in social insurance

5. Creating a corporate seal

6. Posting your registration process

Subsidiary laws

You must comply with all of Oman's subsidiary legislation, regardless of the form of subsidiary you pick. Regulations and rules differ depending on the company, therefore you must investigate the appropriate legislation after establishing your Oman subsidiary. LLCs need at least one Omani partner with a minimum ownership of 30%. Companies held entirely by GCC shareholders, on the other hand, do not need a local Omani partner.

Based on the amount of money contributed, each shareholder has limited accountability. To establish your Oman subsidiary as an LLC, you'll need at least two shareholders but no more than 40. However, LLCs do not have to worry about a minimum share capital requirement, which might assist your firm minimize the procedure and requirements.

13. Why choose Rivermate as your Employer of Record / PEO in Oman

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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