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$249/month
$49/month
2% of gross salary / month
Oman has an available labor force of over 2.3 million from a population of approximately 4.5 million. Its workers are well-educated and highly skilled, with a strong work ethic and excellent interpersonal abilities. While unemployment in Oman is low, competition for jobs is high, and employees are driven to exceed performance expectations.
Many citizens have specialist knowledge and experience in sectors including IT, engineering, healthcare, tourism, maritime industries, and e-commerce with high levels of cultural understanding and the ability to work harmoniously in diverse teams. Average wages vary greatly depending on industry, age, and background but employers should expect a high productivity-to-cost ratio from employees comfortable with remote and office-based working.
Hire in Oman, and pay employees through our platform or app.
Our Oman EOR solution is the most affordable on the market.
Fast Oman onboarding, hire in as little as 24 hours.
We draft compliant Oman labor contracts.
We manage all Oman mandatory benefits.
It doesn’t stop with Oman — we hire employees globally.
An Employer of Record (EOR) is a service that brings together local workers in Oman with foreign employers seeking to expand their workforce. There are many reasons a business may wish to employ staff in a new territory, including lower wage requirements, strategic benefits of the location, and access to cultural understanding.
Recruiting in a new country, however, can be costly, time-consuming, and fraught with complications. As an established local expert, an EOR helps navigate the complexities of establishing a new workforce while assuming all human resources responsibilities and legal liabilities on behalf of the foreign client. This makes the process quick and efficient and allows businesses to recruit in Oman without trepidation.
You will often see the term Professional Employer Organization (PEO) used interchangeably with EOR. While these two services are similar in many ways, there is a key distinction. An EOR acts as a legal employer with Oman on behalf of its clients, removing the need for the foreign business to establish a legal entity within the country. A PEO acts only as a recruiter and human resources management service, so any business using one is still required to set up a local entity before it can begin employing local workers.
When hiring in Oman, the merits of working with an EOR become quickly and clearly apparent. Using this service allows foreign companies to save time and money while reducing risk and removing barriers, both legal and cultural.
Some specific benefits of working with an Oman EOR include:
Horizons stands out as a Oman EOR through:
At its core, an Oman EOR is a facilitator of employment. By establishing a triangle of mutually beneficial relationships, an EOR allows local people to find work and foreign businesses to find talent. It then manages the administration of arrangements between these parties to ensure they are legally compliant and fair to all parties.
The main responsibilities of an EOR are:
After removing the need to establish an entity in Oman, one of the most important functions of an EOR is to ensure compliance with local labor laws. These can range from contract requirements to holiday entitlement and severance payments.
When an employment contract is drafted in Oman, several mandatory clauses must be featured. These include the details of each party, details of the role, start date, working hours, salary, holiday entitlement, and notice period. The contract itself can then take one of four main forms:
Permanent: Issued by Royal Decree 35/2003, the Oman Labour Law states a permanent contract is for full-time work with no predefined end date that can be offered to both Omani and expatriate employees. A similar but less formal arrangement, known as an Appointment Decision, can be made for Omani nationals only.
Fixed-term: The Civil Transactions Law, issued by Royal Decree 29/2013, defines a fixed-term contract in Oman as one that establishes full-time employment with a specified end date within five years of commencement. If a fixed-term employee continues in the same role after five years, their contract is automatically transformed into a permanent one.
Part-time: Similar in almost every respect to a permanent contract, a part-time contract in Oman is simply one in which the agreed working hours are less than a standard work week. Part-time employees are entitled to most permanent and fixed-term benefits on a prorated basis.
Temporary / Sahem: Regulated by the Ministry of Labour, a temporary or Sahem contract is one for the completion of fixed tasks or project work with defined parameters. These should be no longer than one year in duration.
No probationary period.
At completion of the project.
Not applicable
Typically up to 3 months
30 days
Up to 3 years is 15 days salary per year of service
More than 3 years is 1 month salary per year of service
Maximum 2 years' basic salary
Typically up to 3 months
30 days
Up to 3 years is 15 days salary per year of service
More than 3 years is 1 month salary per year of service
Maximum 2 years' basic salary
The Oman Labor Law dictates no worker should be expected to work more than 8 hours in a single day, or 40 in a working week, and no more than 12 hours with overtime. During Ramadan, Muslim workers’ standard hours should be reduced to 6 hours per day or 30 hours a week. Where overtime is agreed upon, employers should pay 125% of standard hourly wages during the day, 150% overnight, and either double pay of time in lieu of rest days.
125% of the standard hourly rate
200% of the standard hourly rate
200% of the standard hourly rate
Employers must observe eight national public holidays each year by allowing paid time off or making overtime arrangements. Many of these are centered around the Islamic calendar, with others marking Sultan Qaboos Mourning Day in January, Renaissance Day in July, and Oman National Day in November. Various states also have additional holidays, which must be factored into any contract of employment.
| Date | Holiday name |
|---|---|
| 12 Jan 2025 | Accession Day of Sultan Haitham bin Tarik |
| 27 Jan 2025 | The Prophet’s Ascension |
| 31 Mar – 3 Apr 2025 | Eid al-Fitr Holiday |
| 5 Jun 2025 | Arafat Day |
| 6 Jun to 10 Jun 2025 | Eid al-Adha |
| 27 Jun 2025 | Islamic New Year |
| 5 Sep 2025 | The Prophet’s Birthday (Tentative Date) |
| 18 Nov 2025 | Oman National Day |
In addition to public holidays and annual leave, other types of paid time off that should be offered to Omani workers include leave for maternity, paternity, study, and – for Muslim workers – Hajj. 15 days can be offered to perform Hajj on just one occasion, while 15 days of paid leave per year should be given to Omani nationals who are studying and need to sit exams. Certain personal or family circumstances also trigger leave entitlement, including three days for marriage and three days for the death of a close family member.
no leave entitlement
15 days of paid leave annually
15 days of paid leave annually
15 days of paid leave annually
For sickness, workers in Oman are entitled to a maximum of 10 weeks each year. The first two weeks are paid at full rate, the next four at 75%, and the final four at 50%. A doctor’s note will usually be requested for absences lasting three days or more.
(percentage of regular wages owed to the employee)
no leave entitlement
10 weeks of paid leave annually
10 weeks of paid leave annually
10 weeks of paid leave annually
Unpaid (unless specified in the employment contract or under special circumstances)
Unpaid (unless specified in the employment contract or under special circumstances)
Unpaid (unless specified in the employment contract or under special circumstances)
In order for employees to receive the full wages due to them, workers must present a valid medical certificate from a certified doctor to their employer.
Maternity leave is set at 98 days, while paternity is three days.
According to Royal Decree No 35/2003 and its amendments, every permanent full-time worker in Oman is entitled to 30 calendar days of paid annual leave. These are accrued on a month-by-month basis. Any not taken can be carried over or, if all parties agree, paid at a standard hourly rate. Timing of annual leave is determined by mutual agreement, though workers are expected to take two consecutive weeks at least once every two years. Leave entitlement is pro-rated for part-time workers.
When permanent employment in Oman is ended early with no fault from the worker, written notice must be given. The standard period when salary is paid monthly is 30 days. This can be reduced to 15 days when other payment arrangements are in place. During probationary employment, which should last no longer than three months, just seven days’ notice is required. Unless the termination is due to gross misconduct, severance must be paid. This is calculated at one month’s salary per year worked for expatriate employees. For Omani nationals, it should be 15 days’ salary for each of the first three years, rising to 30 days’ salary for each additional year.
Social security contributions are mandated by the government to ensure the welfare of employees in the private sector. These contributions are primarily directed towards the Public Authority for Social Insurance (PASI). Employers are required to contribute 10.5%, employees are required 7% whiles the Omani government also contributes 5.5% to the social security fund.
Social security covers various benefits such as old age pension, disability, survivor benefits, health and maternity benefits.
Typically, foreign employees are not covered by the mandatory social security scheme in Oman. Instead of PASI benefits, foreign employees are entitled to an end-of-service gratuity, which is a lump sum payment made by the employer upon termination of employment. This is calculated based on the employee’s length of service and final salary.
Oman does not levy personal income tax on salaries, wages, or other income earned by individuals. This policy applies to both Omani citizens and foreign residents working in Oman.
Omani nationals have access to government-funded healthcare services through the Ministry of Health. These services include free or subsidized medical care at public hospitals and clinics. Some employers may offer additional private health insurance to their Omani employees, providing access to private healthcare facilities and broader coverage options.
Most expatriates in Oman receive health insurance through their employers as part of their employment benefits. Employers are generally required to provide health insurance coverage to their expatriate employees, which typically includes access to private hospitals and clinics.
While there is no mandated minimum wage for expatriate workers, Ministerial Decision 13/1979 stipulates every Omani national should be paid at least OMR 225 per month with a further OMR 100 going towards bonuses, housing, and transportation.
Oman has no requirement to pay a 13th-month salary or bonuses for employees of any kind.
For Omani nationals, a 17.5% social security contribution should be paid on all earnings. This is divided into 7% of salary from the employee and 10.5% from the employer.
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When hiring in Oman, there are two types of workers available: Omani nationals and expatriates residing within the country. Both are protected by basic labor laws, which mandate maximum hours, holiday entitlement, sick leave, and termination protocols. While Omani nationals must be paid a minimum wage, however, there is no such requirement for expatriate employees.
When operating in Oman, it is the responsibility of an EOR to ensure full compliance with all local labor laws and regulations. This includes tax laws, whether applicable to the client, the workers, or the EOR itself. As a local employment expert, an EOR must maintain current knowledge of all tax requirements and obligations.
Holiday Schedule in Oman [2025]
