Payroll and Benefits Guide - Oman

Oman
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Currency

Omani Rial (OMR)
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Capital

Muscat
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Employer Taxes

12.50% 

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Date Format

dd/mm/yyyy
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Fiscal Year

1 Jan – 31 Dec

Fun Facts

The official name of Oman is the Sultanate of Oman.

The traditional attire for Omani men is called a dishdasha, while Omani women wear colorful dresses known as abayas.

Oman is known for its diverse geography, which includes mountains, deserts, and coastal areas.

Oman has a rich cultural heritage and is known for its traditional music, dance, and handicrafts.

The Sultan Qaboos Grand Mosque in Muscat is one of the largest mosques in the world and is a significant landmark in Oman.

Oman is known for its hospitality and warm welcoming culture, with Omani people known for their friendliness and generosity towards visitors.

Contributions

Employee Payroll Tax

Contribution Type Rate
Social Security 7.00%
Job Security Fund 1.00%
Oman does not have personal income tax. Employee Income Tax

Employer Payroll Tax

Contribution Type Rate
Social Security 10.50
Occupational Injury and Disease 1.00%
Job Security Fund 1.00%

Payroll

Payroll Cycle

In Oman, the payroll frequency is typically monthly.

13th Salary

There is no legal requirement for employers to pay a 13th-month payment.

Work Hours and Week

In Oman, the standard work week consists of 45 hours per week, nine hours a day. However, work hours are reduced to 30 hours a week, 6 hours a day during Ramadan.

Overtime

All work above the standard weekly hours is paid as overtime and regulated by employment contracts/collective agreements.

Leave

Annual Leave

Employees have the right to an annual leave of 30 calendar days paid at 100% of their regular salary.

Public Holidays

The local government decides each year if holidays falling on the weekend are lost or moved to a working day in lieu.

Sick Days

An employee is entitled to 10 days of sick leave compensated by the employer at 100% of their regular income.

Maternity Leave

Per Article 83, Part 5 of the Labor Law of Oman, women working in the private sector are entitled to 50 days of maternity leave covering periods before and after delivery, with compensation at 100% of their regular income.

Paternity Leave

In Oman, there are no provisions in the law regarding paternity leave.

Parental Leave

There are no provisions in the law regarding parental leave.

Termination

Termination Process

The termination process varies according to the employment and collective agreement in place and on the type of contract and reason for termination.

Notice Period

The notice period in Oman is a minimum of one month where the employee receives a monthly salary and 15 days in all other cases unless a longer period is agreed upon in the employment contract.

Severance Pay

In Oman, employers must pay severance pay based on the employee’s years of service.

Probation Period

Probation Period

In Oman, probation periods are outlined in the employee’s employment contract/collective agreement. The probation period must not exceed three months. During the probation period, no notice is required.

VISA

VISA

Foreigners are usually requested to obtain entry visas to travel to Oman.

VAT

The standard rate of VAT in Oman is 5%.