Global EOR Services in Oman
Find, Hire & Pay Employees in Oman
Expanding into Oman offers access to a strategic Gulf market with a growing economy and business-friendly environment. However, navigating Omani labor laws, payroll, and compliance requirements can be challenging without local expertise. A Global Employer of Record (EOR) helps businesses hire employees in Oman legally, without setting up a local entity, ensuring compliance with the Oman Labour Law and related regulations.
Why Use Global EOR Services in Oman?
Effortless Market Entry: Hire local talent swiftly without the need for entity establishment.
Regulatory Compliance: Ensure adherence to Afghan labor, tax, and social security laws.
Cost Optimization: Reduce overhead expenses by avoiding entity setup and administrative burdens.
Operational Focus: Delegate HR and compliance tasks while concentrating on core business activities.
🇴🇲Oman: A Comprehensive Guide to Employment and Labor Practices
Using a Global EOR in Oman simplifies hiring and payroll while ensuring compliance with local labor laws. This is especially beneficial if you want to test the market before investing in a full legal entity.
Key Facts
Official Name: Sultanate of Oman
Capital: Muscat
Population: ~4.6 million (2025 est.)
Official Language: Arabic (English widely used in business)
Currency: Omani Rial (OMR)
Time Zone: Gulf Standard Time (GMT+4)
Government: Absolute monarchy under the Sultan
Economic Overview: Diversified economy with focus on oil & gas, logistics, tourism, mining, and manufacturing. Active Vision 2040 program to reduce oil dependency.
Business Language: English is commonly used in contracts, HR, and corporate communication.
Ease of Doing Business: Oman is business-friendly, with free zones, low taxation, and government incentives for foreign investment.
Corporate Tax: Standard corporate income tax rate is 15% (except for exempted sectors and free zones).
Personal Income Tax: 🚫 No personal income tax on salaries and wages.
Social Security Contributions: Employers must contribute for Omani nationals (but not expatriates).
Workforce: Large expat workforce, especially from South Asia, working alongside Omani nationals under the government’s “Omanization” policy.
Key Industries Hiring Expats: Oil & gas, construction, healthcare, IT, education, and logistics.
Employment Laws and Policies in Oman
Oman’s employment relationships are governed mainly by the Oman Labour Law (Royal Decree No. 35/2003, as amended), along with ministerial decisions, social security laws, and occupational safety regulations.
Key aspects include:
Employment Contracts
Must be in writing and in Arabic (translations may be attached).
Should outline job title, salary, working hours, benefits, leave entitlements, and termination terms.
Both fixed-term and indefinite contracts are allowed.
Probationary period: Up to 3 months for skilled workers and 1 month for unskilled workers.
Working Hours
Standard working hours: 45 hours per week / 9 hours per day (reduced to 30 hours during Ramadan for Muslim employees).
Overtime compensation:
1.25x normal wage for extra hours.
1.5x for night shifts.
2x for work on rest days or public holidays.
Leave Entitlements
Annual Leave: 30 days of paid annual leave after 6 months of service.
Sick Leave: Up to 10 weeks, paid on a sliding scale (100% pay for first 2 weeks, then 75%, 50%, 25%).
Maternity Leave: 50 days fully paid leave.
Public Holidays: 9–14 days per year, depending on religious and national observances.
Payroll, Tax & Contributions
Personal Income Tax: 🚫 No personal income tax in Oman.
Social Security:
Employers contribute 11.5% of gross salary.
Employees contribute 7%.
Additional 1% employer contribution for work injury insurance.
Payroll must be in Omani Rial (OMR) and processed in compliance with Wages Protection System (WPS).
Health & Safety
Employers must provide a safe workplace under the Occupational Safety and Health Regulations.
Safety training, protective equipment, and medical care are mandatory in hazardous sectors.
Work injury compensation is covered under social security and employer liability.
Termination & Severance
Notice Period:
30 days for monthly paid employees.
15 days for other categories (unless contract specifies longer).
End of Service Gratuity (for expatriates not under Omani social security):
15 days’ pay per year for first 3 years.
1 month’s pay per year thereafter.
Termination for misconduct is allowed but must follow strict legal procedures.
Non-Discrimination & Equality
The law prohibits discrimination in employment based on gender, origin, language, religion, or social status.
Omanization policies require employers to prioritize hiring Omani nationals, with specific quotas for industries.
Opening a Legal Entity in Oman
Companies looking to establish a direct presence in Oman can set up a legal entity. Common structures include:
Limited Liability Company (LLC) – Most common for foreign investors.
Requires at least 2 shareholders.
Minimum capital: OMR 150,000 for wholly foreign-owned; OMR 20,000 if with an Omani partner.
Branch Office – Requires a contract with an Omani government entity.
Representative Office – For market research and promotion only (not allowed to conduct business).
Joint Stock Company (SAOC/SAOG) – For larger projects, with higher capital requirements.
Steps to Incorporate:
Reserve trade name and register with the Ministry of Commerce, Industry & Investment Promotion (MOCIIP).
Obtain approvals from relevant ministries (depending on business activity).
Register with Oman Chamber of Commerce & Industry (OCCI).
Register with the Public Authority for Social Insurance (PASI) for employee contributions.
Open a local corporate bank account.Process overview:
Reserve company name with Vanuatu Financial Services Commission (VFSC)
Register company, submit Memorandum & Articles of Association
Appoint local registered agent (mandatory for ICs)
Obtain business license (if operating locally)
Register with VNPF
Set up local payroll and accounting
Timeline: Typically 2-4 weeks, depending on entity type.
Popular Global EOR Providers Supporting Oman
(They often partner with in-country firms for local compliance.)
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