Employing Workers in Oman
Employing Workers in Oman
Country Snapshot
- Population: ~5.30 million (2025 est.)
- Expatriates: ~43%
- Omani Nationals: ~56.7%
- Capital: Muscat
- Other Governorates: Batinah, Dhofar, Al Sharqiyah, etc.
- Currency: Omani Rial (OMR)
- Official Language: Arabic (English widely used in business)
The Sultanate of Oman is located on the southeastern coast of the Arabian Peninsula. The capital, Muscat, is the main administrative and commercial center, and Oman has a mixed topography — mountains, desert, coastal plain — influencing population distribution, economy, and labor patterns.
Hiring & Compliance: Overview
MasdarEOR is a fully licensed, in-country Employer of Record (EOR) provider in Oman. We manage all employment obligations on behalf of clients—ensuring full compliance with local labor and immigration laws.
- A valid Oman trade license is required to directly sponsor employees.
- Expatriates must be sponsored under a registered Omani entity—either a client’s own license or an EOR platform such as Masdar.
- Non-compliance with sponsorship and labor laws may result in fines, bans, or deportation.
Why Use an EOR in Oman?
MasdarEOR offers a strategic alternative for companies that:
- Do not have a legal entity in Oman.
- Face limitations with visa quota availability.
- Prefer to outsource local hiring, payroll, and compliance management.
- Seek to meet Omanization obligations without direct headcount.
MasdarEOR can legally employ both expatriates and Omani nationals on our license, giving clients immediate access to workforce deployment without establishing a local entity.
Omanization Quotas & Support
The Sultanate of Oman mandates private sector companies to hire a minimum number of Omani nationals under the national Omanization policy.
- Quota requirements vary by license type, sector, and employee headcount.
- Penalties apply to non-compliance, especially for entities with 50+ staff.
MasdarEOR can manage Omanization on the client’s behalf by:
- Employing eligible Omani candidates on our EOR platform.
- Ensuring full Ministry of Labour registration and Social Protection Fund (SPF) pension compliance.
- Providing local talent sourcing and quota tracking support.
Employment Contracts
- Dual language: English and Arabic
- Currency: Salary must be stated and paid in OMR
- Contract Type: Fixed-term only (≤ 5 years, renewable)
- Job Titles: Subject to availability in Oman systems and tied to academic qualifications and Omanization policies. Not all titles are available and changes can occur without prior notice.
- Must define: job title, start date, salary and allowances, probation period, and termination terms
Working Hours & Public Holidays
- Standard: 8 hours/day, 48 hours/week
- Workweek: Sunday to Thursday
- Ramadan: 2-hour daily reduction for Muslim employees
- Overtime:
- Overtime must be paid at 25% of the hourly wage during regular working days.
- Overtime must be paid at 50% of the hourly wage during the night.
- Overtime on weekend or holidays: 100% for over time worked.
Paid public holidays include:
- New Year’s Day
- Eid Al Fitr
- Eid Al Adha
- Islamic New Year
- Prophet Muhammad’s Birthday
- National Day
Leave Entitlements
Annual Leave
30 calendar days (after 1 year), pro-rated in first year
Sick Leave
- First 1-21 days: full pay
- Next 22-35 days: 75% pay
- Next 36-70 days: 50% pay
- Next 71-182 days: 35% pay
Maternity Leave
98 days paid (including up to 14 days pre-birth)
Parental Leave
7 days paid.
Hajj Leave
15 days paid Hajj leave, for Muslim employees with one year of service.
Probation & Termination
3 months of probation
7 days’ notice requirement during probation
Post-Probation Notice
30 Days
End of Service (EOS) Gratuity
Resignation:
- Under 1 year: No gratuity
- After 1 year: 30 days’ basic salary for each year of service
Payroll Compliance
- Salary Payment: OMR only
- WPS (Wage Protection System): Mandatory for all salaries
- Payslips: Issued monthly
- Frequency: Monthly salary cycle
- No income tax in Oman
- Repatriation: Not mandated by law; depends on contract or agreement
Health Insurance
- Not Mandatory under the Oman law
Why Choose MasdarEOR?
- MoHRE-licensed entity with authority to sponsor expatriate and national workers
- In-house visa, PRO, HR, legal and payroll infrastructure across Omani jurisdictions
- End-to-end onboarding, documentation, payroll, and offboarding
- Omanization quota solutions via direct EOR employment of nationals
- No hidden third-party costs — all services managed by Masdar directly
