Capital City
Muscat
Currency
Omani Rial
(
﷼
)
Timezone
GMT+4
Payroll Frequency
monthly
Tax Year
1 January - 31 December
Employer Tax
12.50%
Languages
Arabic
Capital City
Muscat
Currency
Omani Rial
(
﷼
)
Timezone
GMT+4
Payroll Frequency
monthly
Tax Year
1 January - 31 December
Employer Tax
12.50%
Languages
Arabic
Minimum Wage: The minimum wage for Omani nationals remains at OMR 325 per month, which is unchanged since 2013.
Working Hours: In Oman, regular working hours are 45 hours per week, Employees can work nine hours per day.
Payroll Taxes: In Oman, employers contribute about 20.5% in payroll taxes, which typically cover social security, health care, and other statutory benefits.
Average Salary: The average salary in Oman is approximately 1,800 OMR (~USD 4,675).
Hiring independent contractors has boomed in popularity because of the cost savings and flexibility they offer. It can be a great option if you require niche skills or short-term project support. Contractors allow businesses to access specialized skills quickly, without the time and cost of setting up a local entity.
However, it’s important to know the limits of this model: contractors are not a substitute for full-time employees. Relying on them for ongoing, long-term roles can create serious compliance risks, including employee misclassification, which can lead to fines, back taxes, and reputational damage.
Playroll’s contractor management solutions make it simple to compliantly engage, onboard, and pay contractors around the world. We provide clear visibility into agreements, streamline payments, and reduce compliance risks – so you can focus on getting the work done. And when you’re ready to take the next step, we can help seamlessly convert contractors into full-time employees through our global Employer of Record service.
From compliant contracts to competitive benefits, Playroll’s EOR services keep you aligned with local labor laws and regulations, safeguarding your business, so you can focus on growth.
Book a DemoBusinesses can only operate smoothly in Oman if they comply with local labor laws including drafting compliant employment contract agreements and meeting taxation and payroll obligations. Learn more about the employment laws and regulations in Oman below, to avoid any compliance issues.
The Omani government has implemented reforms aimed at streamlining employment and business procedures. Employment contracts, which can be verbal or written, must be in Arabic or a notarized Arabic translation if written. Essential components for employers in contracts include:
We can help you get a new employee started in Oman quickly, with a minimum onboarding time of just 1-2 working days. The timeline starts once the employee submits all required information onto the Playroll platform and completes any necessary local authority registrations.
For non-nationals, the Right to Work assessment (if applicable) may add up to three extra days. Additional time may be needed for follow-ups on this assessment. Please note, payroll cut-off dates can impact the actual start date. Playroll's payroll cut-off date is the 10th of each month unless otherwise specified.
In Oman, regular working hours are 45 hours per week, Employees can work nine hours per day. However, during Ramadan, work hours are reduced to 30 hours per week (six hours per day) for employees.
If an employee works beyond 45 hours per week mentioned in Article 68, the employer should pay them overtime equivalent to their basic salary, plus an extra 25% for daytime overtime and 50% for nighttime overtime.
Probation periods in Oman are determined by the employee's contract or collective agreement, typically lasting up to three months. During this period, no notice is required for termination.
The average monthly salary in Oman in 2025 stands at approximately 1,800 OMR (~USD 4,675). Salaries vary significantly based on experience, industry, and location - senior roles in sectors like oil & gas, finance, or healthcare can command several times that amount, whereas entry-level or administrative positions may earn notably less. Economic context shows modest growth and stable prices: real GDP growth is projected between 2.2–2.5%, while inflation remains low - around 0.8–1.3% - factors that help sustain wage stability and preserve purchasing power.
Employment laws in Oman can be intricate, and even unintentional mistakes in contracts, benefits, or termination processes can carry legal and reputational consequences. With an Employer of Record, you gain a local partner that ensures every hire is compliant. The EOR takes care of drafting compliant contracts, processing accurate payroll, managing contributions to statutory benefits, and handling lawful terminations if needed, all according to local employment standards.
This level of protection is especially valuable when expanding into new or unfamiliar regions. Instead of using time and resources to build in-house legal knowledge, you gain immediate access to local expertise. The EOR keeps you ahead of regulatory updates and shields your company from potential compliance gaps, so you can confidently hire and manage employees while minimizing risk. For hiring managers and founders, it's the difference between hiring with uncertainty and building your team on a legally sound foundation.
1 January - 31 December is the 12-month accounting period that businesses in Oman use for financial and tax reporting purposes.
The payroll cycle in Oman is usually monthly, with employees being paid as stipulated in the employment contract.
As of January 1, 2025, the minimum wage for Omani nationals remains at OMR 325 per month, which is unchanged since 2013. This comprises of OMR 225 as basic salary and OMR 100 in allowances. The Omani government is actively considering a proposal to raise the minimum wage for Omani workers to between OMR 360 and OMR 400 per month. The preferred figure is OMR 400, but the final decision is pending further evaluation.
There is no statutory minimum wage for expatriate workers.
A proposal is under government review to increase the minimum wage for Omani workers to between OMR 360 and OMR 400 per month, considering factors such as average monthly wages and the annual inflation rate.
Oman does not have a fixed schedule for reviewing the minimum wage; adjustments are made periodically based on economic conditions and labor market needs.
As of 2025, the average monthly salary in Oman is approximately 1,800 Omani Rials (OMR), which is roughly USD 4,675. However, this figure can vary significantly based on factors such as industry, experience, education, and location.
Average salary by occupation:
In Oman, the payment of a 13th salary or bonus is not a legal requirement. However, many employers in Oman choose to offer bonuses or additional compensation to their employees, typically during festive seasons or as a reward for performance. The provision of such bonuses is usually at the discretion of the employer and may vary depending on the company's policies and financial performance.
Employer payroll contributions are generally estimated at an additional 12.5% on top of the employee salary in Oman.
In Oman , the typical estimation for employee payroll contributions cost is around 8%.
Oman does not impose personal income tax.
In Oman, employers are required to contribute 10.5% of their employees' salaries to social security, managed by The Public Authority for Social Insurance (PASI). This system provides pensions and various other benefits for insured individuals and their dependents, ensuring financial security and support for workers and their families.
Employers in Oman must navigate specific payroll tax obligations, including social security contributions for Omani nationals and the Job Security Fund for both Omani and expatriate employees. For Omani nationals, a 20.5% social security contribution is applicable, with employees paying 8% and employers paying 12.5%.
There is a personal income tax of 5%, applicable to residents with annual income exceeding OMR 42,000 (approximately USD 109,000). Understanding and adhering to these requirements is essential to avoid penalties. Utilizing payroll management software like Playroll can help employers consolidate payroll data and stay compliant with Oman's regulations.
As of January 1, 2025, the minimum wage for Omani nationals remains at OMR 325 per month, which is unchanged since 2013.
When you’re scaling quickly, setting up local payroll systems in each new country slows you down. In Oman, the administrative load can include government registration, benefits management, and accurate, on-time payment delivery. An EOR gives you a plug-and-play solution that handles all of this while your internal team stays focused on growth, not red tape.
Key Ways an EOR Supports Payroll in Oman:
Make better business decisions by consolidating global payroll data, while seamlessly syncing your existing payroll operations.
Book a DemoIn Oman, work permits and visas are essential for employers hiring foreign workers. The process involves securing a labor license, submitting applications, and meeting specific eligibility criteria. The key visa types include the Employment Visa, Temporary Work Visa, and Employment Contracting Visa. Employers must ensure compliance with local labor regulations and timely renewals to facilitate a seamless transition for international employees.
The annual leave entitlement in Oman is 30 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.
Oman observes 8 national public holidays alongside additional state-specific holidays whose dates vary according to the Lunar calendar.
Employees in Oman are entitled to a 30-day annual leave with full pay after six months of consecutive employment at one organization. They receive 100% of their regular salary during this leave, and any unused leave can be carried over to the following year.
In the Omani private sector, women receive 98 days of maternity leave at full pay, with some organizations allowing this leave three times. In the public sector, female employees can take maternity leave up to five times during their service, although the exact duration is not specified by law. These regulations aim to support women's health and rights during pregnancy and childbirth while promoting a favorable work environment.
Male employees receive seven days of paid paternity leave, which must be taken within 98 days of the child's birth. This provision applies to both Omani and non-Omani employees across various sectors.
In Oman, employees receive sick leave for up to 182 days per year with the following payment structure: days 1-21 at 100% pay, days 22-35 at 75% pay, days 36-70 at 50% pay, and days 71-182 at 35% pay. Effective July 2025, non-Omani workers will also be entitled to sick leave benefits.
Oman does not have a separate shared parental leave policy.
For startups and small teams, managing global employee benefits isn’t just complex, it’s a full-time job. In Oman, understanding what benefits are required, how to deliver them, and how to stay compliant can be overwhelming, especially without local HR expertise. An Employer of Record removes that pressure by taking complete ownership of benefits administration, so you don't have to become an expert in local employment law.
Whether it’s healthcare contributions, pension enrollment, or statutory leave, the EOR ensures everything is delivered accurately and on time. They navigate any country-specific nuances, keep up with legal changes, and ensure each benefit is properly tracked and documented. For founders, that means fewer distractions and more time to focus on growth. Your employees get the security and support they expect from a local employer, and you get to scale your team in Oman without building complex infrastructure or worrying about compliance missteps.
Termination procedures in Oman depend on the employment agreement, contract type, and the reason for termination. Employers must have valid grounds, offer notice, and provide end-of-service gratuity. Immediate termination without notice or gratuity is only permissible for gross misconduct; otherwise, termination requires a justifiable cause.
In Oman, monthly salary employees typically have a one-month notice period, while other cases require a 15-day notice, unless specified otherwise in the contract. Written notices are mandatory, and no notice is required during the probation period.
In Oman, employers provide severance pay based on an employee's tenure as follows:
Disclaimer
THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). Playroll does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect Playroll’s product delivery in any given jurisdiction. Playroll makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.
Copied to Clipboard
As of January 1, 2025, Oman’s minimum wage rates are:
Average salary in Oman (2025) is about 1,800 OMR/month, with substantial variation depending on experience, industry, and job role; economic growth is modest and inflation low, supporting steady salary levels.
Where to next?
Your “everything you ever needed to know” guides to compliant global employment around the world.