Employer of Record in Oman

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.

Businesses 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.

Employment Contract Requirements

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:

• Identification of both parties
• Commencement date
• Employee's compensation and other benefits
• Workplace

Onboarding Process

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.

Working Hours in Oman

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.

Overtime in Oman

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 Period in Oman

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.

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.

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:

• Rapid Payroll Setup: Onboards employees quickly with ready-to-go infrastructure.
• End Administration: Handles salary, tax, and benefits with no extra internal resources.
• Vendor Simplicity: Consolidates payroll across countries for centralized oversight.
• No Entity Required: Operates legally, saving your business the time and resources needed for local incorporation.

In 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.

Mandatory Leave Entitlement in Oman

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.

Public Holidays In Oman

Oman observes 8 national public holidays alongside additional state-specific holidays whose dates vary according to the Lunar calendar.

Paid Time Off in Oman

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.

Maternity Leave In Oman

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.

Paternity Leave In Oman

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.

Sick Leave In Oman

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.

Parental Leave In Oman

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 Process in Oman

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.

Notice Period in Oman

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.

Severance in Oman

In Oman, employers provide severance pay based on an employee's tenure as follows:

• 15 calendar days' basic pay per year for the initial three years.
• 30 calendar days' basic pay per year beyond three years of service.