Hiring in Oman: Complete Guide 2027
Everything you need to know about hiring and managing employees in Oman
Overview
Oman taxes no salaries today. A 5% personal income tax on annual income above OMR 42,000 starts on 1 January 2028 under Royal Decree 56/2025. Social insurance runs through the Social Protection Fund (Royal Decree 52/2023): for an Omani, 14.5% from the employer and 8% from the employee; for an expatriate, 2% from the employer since July 2026 and nothing from the pay. Expatriates also earn a gratuity of one month's basic wage per year, due to give way to a 9% savings scheme by mid-2027. Budget 10 to 15% on top of salary, before the EOR fee.
Currency
Primary Language
Payroll Tax
Pay Frequency
Overview
Employer Costs
Employer Social Contributions
Mandatory Benefits
EOR Service Fee
Total Additional Cost
Employee Deductions
Income Tax
Employee Social Contributions
Mandatory Employee Benefits
PAYROLL & SETUP
Setting Up Payroll in Oman
Payroll runs monthly in rials, paid by bank transfer through the Wage Protection System. The employing company needs a commercial registration, a Ministry of Labour file and a Social Protection Fund registration for every worker. For Omanis the Fund collects 22.5% of the contributory wage: the employer pays 11% for old age, disability and death, 1% for work injury, 1% for maternity, 1% for sick leave and 0.5% for job security; the employee pays 7.5% plus 0.5%. For expatriates the employer pays 1% for maternity and, since July 2026, 1% for sick and extraordinary leave; their work injury cover starts in 2028. The minimum wage, OMR 325 a month (225 basic, 100 allowances), protects Omanis only. Expatriates accrue a gratuity of one month's basic wage per year until the Fund's savings scheme, 9% of basic wage, replaces it by mid-2027. An EOR files the Fund returns, runs the WPS file and accrues the gratuity; the quote should show the contributions and the accrual.
Key Labor Laws &
Requirements
Employment Contracts
- Labour Law 53/2023 governs private-sector contracts
- Probation up to 3 months for monthly-paid staff, once per employer
- Minimum wage OMR 325 a month, Omanis only
Leave & Time Off
- 30 days' annual leave after six months of service
- Maternity leave of 98 days
- Sick leave insured by the Social Protection Fund, up to 182 days a year
Termination Rules
- 30 days' notice for monthly-paid staff, 15 days for others
- Expatriate gratuity of one month's basic wage per year
- A 9% savings scheme replaces the gratuity by mid-2027
COMPLIANCE
Omanisation, Work Permits and End-of-Service Compliance in Oman
An expatriate needs a work permit from the Ministry of Labour, issued to the company that will employ them, then an employment visa and a resident card from the Royal Oman Police. The Ministry ties new permits to the sponsor's Omanisation targets and keeps some professions for Omanis, so an EOR whose Omani company falls short brings no one in; a partner's company then becomes the legal employer. Labour Law 53/2023 caps probation at three months for monthly-paid staff, once per employer. Notice is 30 days (15 for others), annual leave 30 days after six months, maternity leave 98 days. The law also lets an employer end an expatriate's contract to put an Omani in the same job under its Omanisation plan, after notice to the worker.
Figures checked against official sources: Social Protection Fund (Social Protection Law, Royal Decrees 52/2023 and 60/2025); Ministry of Labour (Labour Law, Royal Decree 53/2023; Decisions 222/2013 on the minimum wage and 299/2023 on wage protection); Tax Authority (Personal Income Tax Law, Royal Decree 56/2025). Checked November 2026.
Key Challenges
- Every expatriate hire needs a Ministry of Labour work permit issued to the sponsor
- Omanisation targets and professions reserved for Omanis limit the roles a foreigner can fill
- Expatriate end-of-service gratuity: one month's basic wage per year, pro rata
- A 9% savings contribution on expatriates' basic wage replaces the gratuity by mid-2027
- Personal income tax of 5% above OMR 42,000 a year from 2028
Country Highlights
Advantages
- No tax on salaries until 2028, then 5% only on income above OMR 42,000 a year
- Nothing is withheld from an expatriate's pay for social insurance
- Maternity and sick pay are insured through the Social Protection Fund
- The rial is pegged to the US dollar, so dollar budgets hold
- Muscat runs on UTC+4: mornings overlap with Europe, most of the day with India
Popular Industries & Roles
Technology
Avg. Salary: OMR 8k-OMR 19k
Muscat's software, data and telecom teams serve the banks, the mobile operators and the digital programmes of Oman Vision 2040.
Oil & Gas
Avg. Salary: OMR 15k-OMR 40k
Petroleum Development Oman, OQ and the LNG plant at Qalhat anchor upstream and process engineering; Duqm adds green hydrogen projects.
Logistics & Ports
Avg. Salary: OMR 8k-OMR 20k
The ports and free zones at Sohar, Duqm and Salalah hire logistics and customs staff, many of the roles under Omanisation targets.
Top 3 Providers in Oman
Based on our analysis of pricing, compliance record, service quality, and customer reviews
Auxilium
- GCC EOR across 6 Gulf markets
- UAE, Saudi, Qatar, Oman, Bahrain, Kuwait
- EOR cost calculator available
- Regional compliance and work permits
Connect Resources
- UAE and Middle East EOR specialist
- MOHRE-accredited; Randstad alliance
- 1,000+ clients; 150+ UAE specialists
- Visa sponsorship and WPS payroll
Deel
- EOR in 130+ countries; owned entities in 130+
- Contractor and EOR in one platform
- 200+ integrations including Slack, Workday
- AI-powered compliance automation
Frequently asked questions
Hiring in Oman through an EOR, in short.
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How much does an employer pay on top of salary in Oman?
Employer contributions in Oman come to 14.5% Omanis, 2% expatriates; the largest mandatory line is Pension 11% (Omanis). With the other statutory benefits and a typical EOR fee, budget ~20–30% on top of gross salary.
What does an EOR charge per employee in Oman?
Published EOR fees in Oman run $350–700/mo per employee per month, with any setup fee negotiated separately. The fee is flat, so it weighs less as the salary rises.
What does an employee in Oman pay in tax and contributions?
Income tax is 0% (5% over OMR 42k from 2028) and employee social contributions are 8% Omanis, 0% expatriates (7.5% pension (Omanis)), both withheld by the employer on every pay run.
How long does it take to hire through an EOR in Oman?
2-6 Weeks once the employee's documents are in. The contract is issued by the EOR's local entity and payroll runs on the local cycle (Monthly).
Which EOR providers rank best in Oman?
Auxilium, Connect Resources and Deel hold the first three places in our ranking for hiring in Oman. The full top 10, with the questions to put to each provider before signing, is here: Top 10 EOR providers in Oman.
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