Oman – Employment Terms and Conditions

What are the standard working hours in Oman, and how is overtime regulated?

Articles 70 and 71 of the Labour Law establish that the maximum permissible working hours are 8 hours per day and 40 hours per week. The typical working week in Oman spans Sunday through Thursday, with Friday and Saturday constituting the weekend, though individual employers may operate on alternative schedules within the bounds set by law. This arrangement shares the same five-day structure common in many countries worldwide, though the specific days differ owing to the Islamic calendar.

Throughout the month of Ramadan, daily working hours for Muslim employees are reduced to a maximum of 6 hours, with the weekly cap set at 30 hours. Part-time employment must involve a minimum of 4 hours per day and cannot exceed 25 hours per week. Separate provisions govern domestic workers, who may work up to 12 hours per day but must be afforded at least 8 hours of continuous rest.

Employees may not work continuously for more than 6 hours without a break, which is generally one hour in duration. Beyond this, all workers are entitled to a weekly rest period of no fewer than 48 consecutive hours — typically Friday and Saturday — though alternative consecutive days may be agreed between employer and employee.

The combined total of regular and overtime hours must not exceed 12 hours per day. While employees must generally agree to work overtime — consent that may be built into the employment contract — Article 72 of the Labour Law carves out exceptions permitting employers to require overtime without consent in specific situations, such as conducting annual inventories, preparing budgets, completing liquidation processes, or responding to accidents and emergencies.

The rate of overtime compensation varies according to when the additional hours are worked. Daytime overtime attracts a minimum surcharge of 25% on top of the basic wage, while work performed at night — defined as the period from 9 pm to 5 am — carries a surcharge of at least 50%. Working on weekends or official public holidays entitles the employee to double pay or a compensatory rest day in lieu. Employees in managerial or supervisory positions may be excluded from overtime entitlements, reflecting the nature of their roles and the broader remuneration packages typically associated with such positions.

Employers are obligated by law to keep thorough records of all hours worked by their employees, including any overtime, and these must be made available for inspection by the Ministry of Labour on request.

What employment rights and benefits are workers entitled to in Oman?

Labour Law 53/2023 guarantees employees a minimum of 30 days of fully paid annual leave per year, which becomes accessible after the employee has completed at least 6 months of continuous service with their employer. This entitlement is considerably more generous than the statutory minimums found in many other jurisdictions — the EU Working Time Directive, for instance, sets a baseline of just 20 days.

Workers are entitled to sick leave for periods of up to 182 days in any given year, with pay calculated on a sliding scale: full salary for the first 21 days, 75% for days 22 to 35, 50% for days 36 to 70, and 35% for days 71 to 182. From July 2025, these sick leave entitlements have been extended to cover non-Omani workers as well — a meaningful expansion given that such protections previously applied mainly to Omani nationals under the social insurance framework.

Female employees are entitled to 98 days of maternity leave on full pay, comprising 14 days of leave before the birth and 84 days following it. An additional unpaid extension of up to 98 days may be taken within one year of the birth. Since July 2024, expatriate female workers have likewise become entitled to 98 calendar days of paid maternity leave, along with 7 calendar days of paid paternity leave for male employees, with these benefits funded through the social security system rather than directly by the employer.

All employees are entitled to their full salary on official public holidays. Where an employer requires staff to work on a public holiday — such as Eid al-Fitr or National Day — appropriate additional compensation must be provided in accordance with the law.

Where an employment contract is of indefinite duration, either party wishing to terminate it must provide the other with written notice of at least 30 days. The notice period may extend to between one and three months depending on how long the employee has been in service. Throughout the notice period, the employer must allow the employee 10 hours of paid time off each week to pursue alternative employment opportunities.

Upon the conclusion of an employment relationship, workers are entitled to a gratuity payment calculated at 15 days’ wages per year of service for the first three years. These entitlements extend to both Omani nationals and expatriate workers under the Labour Law, though reforms to the social insurance dimensions — including pension and unemployment support for non-Omani employees — continue to be phased in.

What are the rules around minimum wage and pay in Oman?

Oman’s minimum wage is determined by the Council of Ministers in response to prevailing economic conditions. For Omani nationals, the minimum wage stands at OMR 325 per month as of 2026, comprising a basic salary component of OMR 225 and allowances totalling OMR 100, as established under the Omani Labour Law by the Ministry of Labour. This applies to Omani workers in all employment arrangements, including full-time, part-time, and temporary positions.

This figure remained unchanged in 2026 from the previous year and has in fact not been revised since 2013. Discussions are nonetheless under way regarding a potential increase to OMR 400, a figure endorsed by the Minister of Labour as the preferred target, though a final decision is pending further assessment and consultation. For the most current minimum wage information before making any financial decisions, always consult the Oman Ministry of Labour website.

No statutory minimum wage exists for expatriate workers in Oman, whose pay is instead governed by market conditions and the terms of their individual employment contracts. In practice, expatriate compensation packages frequently incorporate additional benefits — such as housing allowances, school fees for dependent children, and transport costs — which can result in total remuneration that compares favourably with equivalent roles held by local workers.

Ministerial Decision No. 541/2013 requires that the basic salaries of Omani workers in the private sector be increased by at least 3% each year, effective from 1 January. All wages must be disbursed via officially approved banking channels. Ministerial Decision 729/2024 reduced the deadline for salary payments from 7 days to 3 days following the end of the pay period, and places the burden of proving that payment was made squarely on the employer.

The minimum wage applies uniformly across all sectors for Omani nationals, though specific allowances and supplementary benefits may differ by industry or job function. Readers seeking the most current figures or sector-specific determinations should consult the Ministry of Labour directly.

How does the employment contract system work in Oman?

The rules governing employment contracts apply equally to expatriate and Omani workers. Both may enter into fixed-term or open-ended arrangements, provided the contract clearly sets out the terms of engagement — including duties, remuneration, benefits, and the conditions under which employment may be terminated — and complies in full with Omani Labour Law. All contracts must be in written form, and where the employee is a foreign national, a copy is ordinarily submitted to the Ministry of Labour as part of the work permit application process.

The revised Labour Law introduced notable changes to fixed-term contracts. Such agreements will no longer automatically convert to indefinite-term contracts upon renewal. However, where employment continues beyond five years in total, the contract becomes unlimited in duration by operation of law. This approach diverges from certain other countries’ practices — Germany’s Part-Time and Fixed-Term Employment Act, for example, limits fixed-term contracts without objective grounds to a maximum of two years before conversion to permanent status may be required.

Probationary periods are recognised under the Labour Law. During this phase, either party may end the employment relationship with only 7 days’ written notice. Once the probationary period concludes, more robust termination protections come into effect. While employers may dismiss workers on economic grounds, any proposed redundancy is subject to review by a designated committee, which may recommend alternatives such as reduced hours, adjusted pay, or temporary leave before approving a termination.

A lawfully compliant employment contract in Oman must generally address the following elements:

• Full names and identifying details of both the employer and employee
• Nature of the role and job title
• Salary, allowances, and the schedule of payment
• Contract duration (where the agreement is for a fixed term)
• Working hours and rest day arrangements
• Terms of any probationary period
• Notice requirements for termination by either party
• Leave entitlements

Where a contract is terminated without the required notice, the terminating party is liable to pay compensation equivalent to the gross wage for the notice period or any unexpired portion of it. Employers who bring an employment relationship to an end are obliged to settle all outstanding wages and other amounts owed to the worker without delay.

How does the workplace pension system work in Oman?

Royal Decree No. 52/2023 gave rise to the Social Protection Law (SPL), which established a unified Social Protection Fund (SPF) designed to consolidate and enhance benefit provision for workers and their dependants. While the bulk of the SPL came into effect in January 2024, certain provisions are being introduced in stages through 2025 and beyond.

Mandatory enrolment in the SPF applies to all Omani nationals employed in the private sector or semi-government entities. Their contributions cover the full spectrum of insurance branches under the scheme, encompassing old-age pensions, disability and death benefits, occupational injury compensation, maternity support, and unemployment insurance. In contrast to the UK’s auto-enrolment system — where contributions accumulate in a defined contribution pot with some degree of individual choice — Oman’s SPF operates as a state-managed defined benefit arrangement for national workers.

From 2024, the contribution structure for Omani employees under the SPF is as follows:

• Old Age, Disability, and Death: Employee share 6.5%, employer share 9.5%
• Work Injuries and Occupational Disease: Employer-only contribution of 1% (salary ceiling of OMR 3,000)
• Employment Security (unemployment insurance): 0.5% each from employee and employer (1% total)
• Maternity Leave (from July 2024): Employer share of 1%
• Sick and Other Leaves: Employer share of 1% (implementation schedule subject to updates)

The maximum monthly salary taken into account for contribution calculations is OMR 3,000. The reform moves Oman away from a fragmented system of separate pension funds for different workforce categories, toward a multi-tiered arrangement capable of serving the broad formal labour market. For authoritative information on contribution rates and scheme rules, visit the Social Protection Fund (SPF) website.

What types of pension arrangements are available to expats in Oman?

For most of Oman’s history, the state pension scheme has been reserved exclusively for Omani nationals. The Social Protection Law of 2023 marks a significant departure from this position by progressively extending certain protections to foreign workers, though the full implementation is being rolled out over several years. Notably, the creation of individual savings accounts to fund end-of-service benefits for non-Omani workers will make Oman the first of the six GCC states to establish funded individual accounts for expatriate employees.

From July 2027, a mandatory savings scheme will supersede the traditional end-of-service gratuity arrangement for non-Omani workers. Under this mechanism, employers will be required to contribute 9% of each employee’s monthly basic wage into a provident fund administered by the SPF. These funds will accumulate throughout the duration of employment and become payable to the worker upon conclusion of their service in Oman. This model bears a resemblance to Australia’s superannuation system, in which employer contributions build up in an individual fund account over the course of employment and are accessed when the worker leaves service.

The accumulated balance may be released to the worker either as a single lump sum or in annual or monthly instalments, depending on their preference. This is a significant benefit for expatriates managing their retirement finances across multiple countries, as it ensures they leave Oman with tangible savings tied to their years of service.

It is important for expatriates to understand that the old-age state pension — the monthly income stream payable from retirement age — currently remains the preserve of Omani nationals through the SPF. Foreign workers are not enrolled in this component. Those with pension entitlements in their home country should investigate whether any bilateral social security agreements exist between Oman and that country, as such treaties may allow contribution periods to be aggregated or transferred. This is a rapidly evolving area, and readers are strongly encouraged to confirm the current position with the Social Protection Fund and a qualified financial adviser before making any decisions.

Expatriates seeking wider retirement savings coverage may wish to explore private or international pension vehicles — such as international SIPPs (Self-Invested Personal Pensions) available in certain jurisdictions, or employer-sponsored defined contribution plans. These fall outside Omani regulatory oversight but may carry tax recognition in the expat’s home country.

What is the retirement age in Oman, and how does the pension eligibility system work?

The SPF’s old-age pension commences payment of a monthly benefit when the insured person reaches 60 years of age. However, differentiated thresholds apply in specific circumstances. Early retirement free from actuarial reduction is accessible to men at 60 and women at 55, subject to the completion of specified service periods. A reduced early retirement pension — subject to proportional deductions — is available to men from age 55 and women from age 50, again contingent on meeting particular service requirements.

Under the Social Protection Law, the standard retirement ages — currently 60 for men and 55 for women — will be raised incrementally, advancing by one year every seven years until they reach 65 for men and 60 for women. Thereafter, the ages will be reassessed every five years in light of actuarial assessments of life expectancy and workforce capacity in Oman, with any adjustments approved by the Council of Ministers on the recommendation of the SPF Board and an independent actuary.

Distinct eligibility conditions govern certain groups, including people with disabilities, workers in hazardous or physically demanding occupations, and those affiliated with the military and security services. Mandatory scheme membership applies to Omani workers across all employment types, including those on temporary and training contracts, part-time workers, retired individuals returned to active employment, members of the Oman Council and municipal councils, and self-employed Omani nationals.

Given that the retirement age will rise gradually over time, expatriates who become eligible for participation in the Omani pension system in future should keep abreast of developments through the Social Protection Fund website. Since eligibility criteria, contribution requirements, and qualifying service periods may be subject to change, always confirm the current rules with the SPF or a licensed financial adviser rather than relying on any single source of information.

What taxes and social contributions are deducted from wages in Oman?

Perhaps the most striking financial aspect of employment in Oman — for nationals and foreign workers alike — is the complete absence of personal income tax. Because Oman imposes no tax on individuals’ employment earnings, workers receive their salary without any income tax withheld at source. This stands in marked contrast to the majority of OECD countries, where employers are required to deduct income tax from wages before they are paid.

For Omani nationals, SPF contributions deducted from the employee’s salary amount to 6.5% for Old Age, Disability, and Death insurance and 0.5% for Employment Security (unemployment insurance), bringing the total employee contribution to 7% of covered earnings. These amounts are withheld by the employer and forwarded to the SPF each month.

The position for expatriate employees is changing. Foreign workers are not currently enrolled in the old-age pension branch of the SPF, meaning no corresponding deduction is made from their wages for that element. However, the 1% employer contribution for maternity leave already applies in respect of expatriate employees, and further contributions are being phased in, including a 1% employer contribution for sick leave and work injury insurance for non-Omani employees scheduled to commence in July 2028.

From July 2027, the mandatory savings scheme replacing end-of-service gratuity for non-Omani workers will see employers contributing 9% of monthly basic wage to the SPF-managed provident fund. This is an employer-side obligation rather than a deduction from the employee’s pay, but it is relevant to the broader picture of employment costs and benefits.

There is no personal tax return requirement connected to employment income in Oman. The country introduced VAT at a rate of 5% in April 2021, but this applies to the purchase of goods and services, not to earnings from work. Workers with investment income, business activities, or complex cross-border financial arrangements should seek specialist tax advice, particularly with regard to any obligations they may have in countries where they hold tax residency. The Oman Tax Authority is the relevant official body for tax-related enquiries.

What are the rules around trade unions and collective bargaining in Oman?

Trade unions are legally permitted in Oman, and both employers and employees — including foreign nationals — are able to engage in collective bargaining, dispute resolution processes, and advocacy for workers’ interests. Expatriate workers are subject to the same rules on union participation as Omani nationals.

The General Federation of Oman Workers (GFOW) serves as the principal national trade union body. Union membership tends to be most prevalent in larger organisations and in industries such as oil and gas, construction, and manufacturing. Where collective bargaining agreements are in place, they have the capacity to establish terms and conditions above the statutory minimums on matters including wages, leave entitlements, and working conditions. That said, individual employment contracts remain the dominant mechanism through which terms are determined for most workers, particularly in the private sector.

The revised Labour Law introduced significant amendments strengthening the legal basis for collective labour agreements, reinforcing the framework within which employment terms can be negotiated collectively. Workers with concerns about their conditions of employment may also seek redress through the Ministry of Labour’s dispute resolution mechanisms. The process begins with mediation, and matters that cannot be resolved at that stage may be referred to the labour courts for adjudication.

Are there any particular employment protections or challenges that expats should be aware of in Oman?

Oman is frequently recognised as having one of the more accessible and transparent labour law environments in the Middle East for foreign workers, given that expatriates are subject to the same core employment legislation as Omani nationals. Nevertheless, certain additional requirements specifically affecting non-Omani workers must be navigated, including visa conditions, work permit procedures, and medical clearance obligations.

A fundamental aspect of expat employment in Oman is the direct connection between employment status and immigration rights. Work visas are employer-sponsored, issued under a licence granted by the Ministry of Labour, and are valid for two years with multiple-entry entitlement once residence is established. The end of an employment relationship therefore has immediate implications for the right to remain in Oman. This characteristic is shared by other GCC countries and differs considerably from systems such as those in France or Canada, where residence rights are generally independent of any particular employer.

The Labour Law expressly allows for the termination of a non-Omani employee where the purpose is to replace them with an Omani national, subject to the satisfaction of various statutory conditions. This is a direct consequence of the national Omanisation policy, which obliges employers to maintain prescribed quotas of Omani staff in their workforce. Expatriates considering long-term career development in Oman should factor this policy into their planning.

Professional qualification recognition can present a practical hurdle for some foreign workers. Those employed in accounting and finance must obtain a Professional Classification Certificate, while workers in logistics or the energy and minerals sectors require a Professional Practice Licence. Absence of the required accreditation will prevent the issue or renewal of work permits and visas. Professionals in regulated fields should therefore research recognition requirements thoroughly before committing to a relocation.

Employment contracts in Oman are ordinarily issued in Arabic, the language of official legal proceedings. Workers who do not read Arabic should ensure they obtain an accurate translation of any contract before signing. Bilingual contracts are common in multinational workplaces, but it is the Arabic text that will prevail in the event of a legal dispute. Independent legal advice prior to signing a contract is strongly recommended. The Ministry of Labour and the Social Protection Fund are the primary official bodies for employment and social insurance matters respectively.

The salaries of foreign employees must additionally be processed through the Wage Protection System (WPS), which is designed to ensure timely payment of wages, minimise salary disputes, and protect expatriates’ earnings. This represents an important safeguard against wage non-payment, which has historically been a concern across parts of the Gulf region.

Frequently asked questions

Are foreign qualifications recognised for employment purposes in Oman?

Whether a foreign qualification is recognised depends on the profession and the sector in which the worker is employed. Roles in regulated fields such as accounting, finance, engineering, and the energy sector may require holders to obtain formal Professional Classification Certificates or Professional Practice Licences from the appropriate Omani authorities. It is essential to establish whether your qualification requires official endorsement before accepting a position, since without the relevant accreditation your work permit cannot be granted or renewed. The Ministry of Labour or the applicable professional body in Oman can advise on requirements specific to your occupation.

What happens to my end-of-service savings if I leave Oman?

Under the mandatory savings scheme for non-Omani workers that is due to take effect from July 2027 through the Social Protection Fund, employer contributions of 9% of your monthly basic wage will accumulate in your individual provident fund account and become payable when your service in Oman ends. You may choose to receive the balance as a lump sum or in annual or monthly instalments. Until this scheme is operational, the existing end-of-service gratuity system remains in force, with gratuity paid directly by the employer upon termination of the employment relationship. You should confirm the current arrangements with your employer and the SPF before departing Oman.

What happens to my employment rights if my visa changes or is transferred to a new employer?

Work visas in Oman are tied to a specific employer, so moving to a different employer generally requires a formal visa transfer or a new work permit to be obtained. Entitlements accrued under Labour Law — including gratuity based on length of service — are calculated in relation to each distinct employment contract. Commencing a new contract with a new employer ordinarily resets the service period for gratuity calculation purposes, unless an express written agreement is reached to preserve previously accrued rights. Always clarify how any accumulated entitlements will be treated before agreeing to transfer to a new employer.

Can expats access the Omani state pension in retirement?

At present, the old-age pension component of the Social Protection Fund — which provides a monthly income from age 60 — is available only to Omani nationals. Expatriate workers are not enrolled in this branch. The forthcoming mandatory savings scheme from July 2027 will give expats access to a funded individual account built up during their time in Oman, which can be drawn upon at the end of their service. For broader retirement provision, private or international pension arrangements may be worth considering alongside this. Always verify the current rules with the SPF at spf.gov.om.

Is there a probationary period, and what protections apply during it?

Yes, Oman’s Labour Law allows employers to include a probationary period in employment contracts. During this time, either party may end the employment relationship on just 7 days’ written notice. Once the probationary period has been completed, comprehensive dismissal protections apply, including the standard notice requirement of at least 30 days for indefinite contracts and the full gratuity entitlement. The duration of any probationary period should be expressly stated in your contract.

Do I need to file a tax return in Oman?

Oman levies no personal income tax on employment earnings, so there is no personal income tax return to file as a consequence of working in the country. However, if you remain tax resident in another jurisdiction, you may still be obliged to report your worldwide income to the tax authorities there. It is important to seek advice from a tax professional with expertise in both Omani and your home country’s tax rules. For official guidance on tax matters in Oman, refer to the Oman Tax Authority at tax.gov.om.

Are maternity and paternity leave rights the same for expats as for Omani nationals?

Since July 2024, non-Omani employees have been entitled to 98 calendar days of paid maternity leave and 7 calendar days of paid paternity leave, with these benefits funded through the social security system rather than by the employer directly. This development substantially aligns expatriate entitlements with those of Omani nationals under the new Social Protection Law. It should be noted, however, that domestic workers are currently excluded from this provision.

What can I do if my employer fails to pay my wages on time?

Private sector employers in Oman are legally required under the Wage Protection System (WPS) to pay employees’ salaries through approved banks within 3 days of the close of each pay period. If your wages are late or withheld, you may lodge a formal complaint with the Ministry of Labour using its dispute resolution procedures. Where mediation does not produce a resolution, the matter may be referred to the labour courts. The Ministry of Labour website at mol.gov.om contains guidance on the complaints process.