Employer of Record in Oman

Hiring Employees in Oman With An EOR

Hiring in Oman can seem complex – but with the right facts and tools, it’s simple. This guide walks you through the local job market, shows how Employer of Record services guarantee compliance, and highlights the key labor laws you need to know.

Hiring Employees In Oman
Employer Of Record In Oman

Capital City

Muscat

Currency

Omani Rial

 (

)

Timezone

GMT+4

Payroll Frequency

monthly

Tax Year

1 January - 31 December

Employer Tax

12.50%

Languages

Arabic

Jesse Weisz

R&D Analyst

Last Updated

September 15, 2025

In This Guide

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Employment Guide For Hiring in Oman

Looking to grow your team in Oman? It’s a great way to tap into new talent and fresh markets – but hiring across borders comes with its own set of hurdles. From understanding local labor laws to managing payroll and staying compliant, it gets complex if you don’t have local HR support.

Playroll’s full-service Employer of Record platform handles all the heavy lifting so you can hire confidently in Oman without setting up a local entity. In this guide, we’ll break down everything you need to know about hiring employees in Oman, including employment contracts, payroll, statutory benefits, and compliance with local labor laws.

What to Know Before Hiring employees in Oman

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.

Labor Laws: An Employer of Record acts as the legal employer for workers in Oman, taking on key responsibilities to ensure compliance with local labor laws and regulations. 

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).

How to Hire Employees In Oman

Hiring in Oman for the first time can be overwhelming, especially when navigating unfamiliar employment laws. So, how do you get started? There are three main ways to hire in Oman: Set up your own legal entity, hire independent contractors, or use an EOR service to handle payroll and global HR for you. Below, we’ll walk you through each option in detail.

1. Set Up A Local Entity In Oman

Setting up a local entity in Oman is the traditional route for businesses that want to build a long-term presence in a new market. It allows for direct hiring, fine control over operations, and compliance with local labor laws.

That said, the process is rarely simple. It involves navigating complex legal structures, extensive registration procedures, ongoing payroll administration, and local tax obligations. Beyond the administrative burden, the costs of incorporation, maintaining local offices, and hiring compliance experts can quickly add up.

For companies operating with slim margins or testing new markets, these financial and operational commitments often make setting up a local entity an unfeasible option compared to more flexible and cost-effective solutions.

2. Use An Employer Of Record In Oman

An Employer of Record (EOR) acts as the legal employer for workers in Oman, taking care of compliance, payroll, and local labor regulations. This makes it fast and straightforward to bring on talent without the cost and complexity of setting up a local entity. For businesses looking to test new markets or scale teams across borders with confidence, EORs offer a flexible, low-risk solution.

The Employer of Record in Oman is responsible for:

  • Employment Compliance: Ensure all employment contracts comply with Oman's labor laws and regulations, including proper classification of employees.
  • Payroll Management: Calculate, process, and distribute employee salaries in accordance with Oman's payroll laws, including deductions for taxes and social security contributions.
  • Tax Filing and Contributions: Handle the registration, filing, and payment of employer taxes and social security contributions to the relevant authorities.
  • Employment Contracts: Draft and maintain compliant employment agreements, detailing salary, benefits, working hours, and termination terms in line with Oman's legal requirements.
  • Benefits Administration: Provide mandatory employee benefits as required by Oman's labor laws, such as health insurance, pension contributions, and statutory leave.

3. Hire Independent Contractors 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.

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Labor Laws in Oman

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.

Average Salary In Oman

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.

Not sure what to pay in Oman? Compare fair, local salaries with our free benchmarking tool.
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Working Hours in Oman

Minimum Wage in Oman

How an Employer of Record Helps You Hire in Oman

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.

Payroll Management in Oman

Fiscal Year in Oman

1 January - 31 December is the 12-month accounting period that businesses in Oman use for financial and tax reporting purposes.

Payroll Cycle in Oman

The payroll cycle in Oman is usually monthly, with employees being paid as stipulated in the employment contract.

Minimum Wage in Oman

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.

Average Salary in Oman

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:

  • IT Support: The average monthly salary for IT support roles in Muscat is around 300–452 OMR, depending on experience and specific responsibilities.
  • Fast-Moving Consumer Goods (FMCG): Professionals in the FMCG sector in Muscat can expect an average monthly salary of approximately 2,507 OMR, with total compensation potentially reaching up to 2,757 OMR.
  • Times of Oman Employees: Employees working at the Times of Oman reportedly have an average annual salary of 30,490 OMR, which translates to about 2,540 OMR per month.

Bonus Payments in Oman

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.

Employment Taxes in Oman

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 12.5% on top of the employee salary in Oman.

Tax TypeTax Rate
Social Security10.5%
Occupational Injury and Disease1%
Job Security Fund1%

Employee Payroll Tax Contributions

In Oman , the typical estimation for employee payroll contributions cost is around 8%.

Tax TypeTax Rate
Social Security7%
Job Security Fund1%

Individual Income Tax Contributions

Oman does not impose personal income tax.

Income BracketTax Rate
Above OMR 42,0005%

Pension in Oman

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.

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The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in Oman tailored to your needs.

Employment Taxes and payroll in Oman

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.

How an EOR Helps You Run Payroll in Oman

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.

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Work Permits & Visas in Oman

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.

Annual Leave & Company Policies In Oman

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.

Holiday Date
Sultan's Accession Day 11-12 January
Isra and Mi'raj (Prophet Muhammad's Ascension) January-February, date varies
Eid al-Fitr March-April, date varies
Renaissance Day 23 July
Eid al-Adha June, date varies
Islamic New Year June-July, date varies
Prophet Muhammad's Birthday September, date varies
Oman National Day 18-19 November

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.

Annual Leave and Company Policies In Oman

Employee Benefits in Oman

Using an Employer of Record to Administer Benefits in Oman

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 and Severance Policies in Oman

Employment Termination and Severance Policies in Oman

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.

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.

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ABOUT THE AUTHOR

Jesse Weisz

Jesse is an experienced R&D Analyst at Playroll, a leading Employer of Record (EOR) provider. With a strong background in data analysis and market research, Jesse specializes in identifying emerging trends and driving innovation in global HR solutions. She is an all-rounder, critical thinker and success-seeker (often inextricably linked to being a late-night tea drinker).

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FAQs About Hiring in Oman

What is the minimum wage in Oman?

As of January 1, 2025, Oman’s minimum wage rates are:

  • OMR 325 per month for Omani nationals.
  • There is no statutory minimum wage for expatriate workers.
  • Adjustments are made periodically based on economic conditions and labor market needs.

What is the average salary in Oman?

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.

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