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Oman is located in the south eastern part of the Arabian Peninsula in South west Asia. It shares borders with the United Arab Emirates, Saudi Arabia, and Yemen, and it has a long coastline along the Arabian Sea and the Gulf of Oman.
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Oman’s economy is diverse, with oil and gas being significant contributors. The government has been working to diversify the economy by investing in non-oil sectors such as tourism, logistics, and manufacturing.
By hiring in Oman, you contribute to the local economy and help support the development and sustainability of the country’s job market.
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Oman has a government-mandated minimum wage, and no worker in Oman can be paid less then this mandatory minimum rate of pay. The minimum wage stands at 325 OMR per month.
Standard Working Hours
The standard working hours is 45 hours per week, usually 9 hours per day. This is reduced to 6 hours per day during Ramadan.
The standard work week is Sunday – Thursday.
Compensation for all hours worked beyond the regular weekly schedule is designated as overtime and is subject to regulation through employment contracts or collective agreements.
The payroll cycle is typically monthly. Salaries must be paid at least once a month.
Paid time off
Workers are entitled to a yearly vacation of 30 days on the calendar, with compensation set at 100% of their standard salary. This privilege accrues after completing 6 continuous months of service with a single employer. Any unused leave can be carried forward to the subsequent year.
Employees who are unable to fulfill their job responsibilities due to illness or injury typically have sick leave entitlement. The specifics of this entitlement, including its duration, are typically outlined in employment agreements, company policies, or collective bargaining agreements.
Employees are granted sick leave for a period of 10 days, during which they receive compensation equivalent to their regular full income. If the illness or injury persists for more than 2 weeks, the responsibility for payment shifts to the Social Security system and pay is dependant on the length of sickness.
Women are entitled to 50 days of full pay maternity leave before or after delivery, as per the employee’s preference. This leave was granted for female employees who had completed 1 year of continuous service with the employer. If the employee has not completed 1 year of continuous service, they are then entitled to 10 days of maternity leave with full pay.
The laws in Oman do not contain any provisions concerning paternity leave.
Termination of Employment
Employers in Oman could terminate employment contracts for various reasons, including poor performance, redundancy, violation of company policies, and other valid reasons.
However, termination had to be done in accordance with the labour laws and regulations, ensuring that due process was followed, and the employee’s rights were respected.
Employers must have sufficient grounds for terminating an employee and must provide a formal notice period and end-of-service gratuity. In cases of termination, employees with at least three years of service are entitled to receive a severance pay. The amount of severance pay depended on the length of service and the employee’s basic salary.
The notice period is at least 1 month for employees with a monthly salary and 15 days for all other cases, unless a more extended timeframe is mutually agreed upon within the employment agreement. All notices must be provided in written form. Additionally, during the probationary period, no mandatory notice period is mandated.
In Oman, the probationary periods are dependant within the employee’s employment contract or collective agreement. These probation periods are not permitted to extend beyond 3 months.
Oman’s visa rules include various categories including tourist visas issued upon arrival or through an electronic system, work visas tied to employment contracts, and residence permits for foreign.
A sponsor, usually an employer, is necessary for all. Work visas require sponsorship, and residence permits are obtained after entry. Visa renewal is common, and dependent visas for family members are often permitted.
These visas are available in single-entry, double-entry, or multiple-entry forms, permitting stays of up to 90 days within any 180-day period. A single-entry visa grants entry once, while a double-entry visa enables two trips within specified timeframes.
The standard rate of VAT in Oman is 5%.