Oman offers a stable Gulf market with a modernised Labour Law and low direct employer taxes for expatriate staff. All-in employer cost runs around 1.12x the gross salary. Here is what to know before your first Omani hire.
Employment runs under the 2023 Labour Law, with salaries paid through the Wage Protection System and Omanisation quotas in place. Nationals are on social insurance; expatriates receive an end-of-service benefit.
A minimum wage applies to Omani nationals; there is no set minimum for expatriate workers*.
Monthly, paid through the Wage Protection System. There is no statutory 13th salary.
Paid public holidays include the two Eids and National Day, with additional days by employer.
Written contracts are required. Probation is up to three months under the new law.
For Omani nationals the employer pays social insurance; for expatriate staff the main cost is the end-of-service benefit, with a new job-security contribution added by the 2023 law.
The 2023 Labour Law added a job-security contribution and refreshed leave and termination rules, so several figures are in transition.
There is no personal income tax in Oman. Payroll compliance centres on the Wage Protection System and social insurance for nationals, which under EOR is ours.
30 days of paid leave a year under the new Labour Law.
98 days of maternity leave under the 2023 law, a substantial increase.
Paid sick leave on a scale over the course of an illness after a qualifying period.
Paternity, bereavement, and study leave are provided under the new law.
Notice applies as set by the contract and the new law, which reshaped grounds for termination.
Expatriate staff receive an end-of-service benefit scaled by tenure on departure.
Up to three months, with defined notice during it.
Work requires the proper permit; engaging staff outside it creates compliance exposure.
*All figures are estimates from public sources (2025-26), pending ops verification - same basis as the EOR cost calculator. Not tax or legal advice.
Compliant Omani contract, WPS payroll, and end-of-service benefit, handled. One invoice, flat $699 per month.