Oman

Employer of Record (EOR) in Oman

Only 399 EUR per employee per month

Rivermate's Employer of Record (EOR) solution helps companies hire remote employees in Oman . We take care of global payroll, taxes, benefits, compliance and HR activities. So you can focus on growing your business. Our Employer of Record (EOR) solution is beneficial to companies that want to hire remote employees in a breeze. On this page you will find employment information for Oman.

Employer of Record people
A coin
Currency
Omani Rial
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Capital
Muscat
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Region
Asia
Megaphone
Language
Arabic
Hire remote employees
Population
5106626
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GDP
$70.78 billion
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GDP growth
-0.0027
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Ease of doing business
70
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World GDP share
0.0009

1. Grow your team in Oman with Rivermate as your Employer of Record (EOR) / PEO

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 Employer of Record (EOR) solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

2. Summary

Oman, formally known as the Sultanate of Oman (Arabic: سلْطنةُ عُمان Salṭanat(u) ʻUmān), is a nation in Western Asia. It is located on the Arabian Peninsula's southern coast and crosses the Persian Gulf. Oman has land borders with Saudi Arabia, the UAE, and Yemen, as well as marine borders with Iran and Pakistan. The Arabian Sea on the southeast and the Gulf of Oman on the northeast comprise the shore. The United Arab Emirates surrounds the Madha and Musandam exclaves on all sides, with the Strait of Hormuz (which it shares with Iran) and the Gulf of Oman marking Musandam's coastline limits. Muscat is the capital and biggest city of Oman.

The Omani Sultanate was an empire from the 17th century, competing for power in the Persian Gulf and Indian Ocean with the Portuguese and British empires. Omani influence or dominance reached its apex in the nineteenth century, extending over the Strait of Hormuz to modern-day Iran, Pakistan, and as far south as Zanzibar. When the sultanate's strength collapsed in the twentieth century, it came under the control of the United Kingdom. For almost 300 years, the two empires' connections were founded on mutual benefit. The United Kingdom recognized Oman's geographic significance as a commercial center, securing their commerce routes in the Persian Gulf and Indian Ocean and protecting their empire on the Indian subcontinent. Muscat was formerly the Persian Gulf region's main trade port.

From 1970 until his death on January 10, 2020, Sultan Qaboos bin Said was the hereditary ruler of the kingdom, which is an absolute monarchy. The son of the Sultan is customarily proclaimed as the next monarch under Oman's procedures for succession to the sultanic throne. Sultan Qaboos bin Said was a childless man. In a letter, Qaboos bin Said chose his cousin, Haitham bin Tariq, as his successor, and the sultanic family acknowledged him as the next Sultan of Oman.

Oman, once a maritime empire, is the Arab world's oldest continuously sovereign state. It is a member of the Organization of Islamic Cooperation, the Arab League, the Gulf Cooperation Council, the Non-Aligned Movement, and the United Nations. It has the 22nd largest oil reserves in the world. In 2010, the United Nations Development Programme named Oman the world's most improved country in terms of development during the previous 40 years. Tourism and the trade of fish, dates, and other agricultural products contribute to its economy. According to the Global Peace Index, Oman is classified as a high-income economy and ranks as the 73rd most peaceful nation in the world as of 2021.

Hiring talented employees in a short span is not an easy task. Partnering with an Employer of Record (EOR) like Rivermate in Oman is your best option, giving your organization enough time to focus on other aspects of international expansions like project management and inventory management. The EOR takes care of all the compliance and legal issues while helping you speed up hiring using their knowledge of domestic employment practices and virtual onboarding tools. Top EORs also have provisions for the e-signing of documents to enable faster onboarding.

3. Public holidays

4. Types of leave

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

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

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 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 minimum wage 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 employee benefits 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 taxes 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 VISA and work permits 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 Employer of Record (EoR) service terms 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.

With Rivermate being your Employer of Record (EoR) in Oman, you do not have to worry about the employment contracts, as we take care of that.

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 (EOR) 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 (EOR) / PEO solution.

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