Staff and visas in Oman

The Labour Law (Royal Decree 53/2023) sets the terms of employment. A foreign-owned company must employ at least one Omani once its commercial registration is one year old. A foreign employee's right to work and live in Oman is tied to the employer.
Last checked 13 November 2026

Key facts

Working time
8 hours a day and 40 hours a week
Weekend
Friday and Saturday
Annual leave
30 days after 6 months
Notice on an open-ended contract
30 days in writing for monthly-paid staff and 15 days for others
End-of-service for foreign staff
At least one month of basic salary per year of service. A 9% employer savings fund replaces it from 19 July 2027
Social security for Omani staff
Employee 8%. Employer 14.5% from 19 July 2026
Social security for foreign staff
Employer pays 2% of monthly pay from 19 July 2026. No retirement contributions
Omanisation fine
OMR 500 to 1,000 for each Omani an employer is required to employ

01Contracts and probation

A fixed-term contract lasts up to five years. Employment counts as open-ended once total employment exceeds five years.

  • The Labour Law (Royal Decree 53/2023) came into force on 26 July 2023. It replaced Royal Decree 35/2003.
  • A fixed-term contract lasts up to five years (Article 34). It is renewable by agreement and does not convert automatically to open-ended on renewal.
  • Employment counts as open-ended once total employment exceeds five years (Article 35).
  • Probation is up to 3 months for monthly-paid staff and 2 months for others. It can be used once with an employer.
  • Either side gives 7 days' notice during probation.
Sources PwC, Sultanate of Oman: key changes to the new Oman Labour Law, September 2023 · DLA Piper, Employment law in Oman · Royal Decree 53/2023 (Labour Law), full text, Oman decree portal · Lex Mundi, Oman guide

02Notice and termination

On an open-ended contract the notice is 30 days in writing for monthly-paid staff and 15 days for others. Termination needs a valid reason.

  • The notice is longer if the contract says so.
  • Summary dismissal is limited to nine listed cases and carries no gratuity.
  • Unfair dismissal carries compensation of 3 to 12 months' gross pay or reinstatement.
  • Redundancy is allowed for economic reasons with committee approval and at least three months' notice.
  • A non-compete clause is allowed for up to two years and within the employer's area, for staff with access to confidential information.
Sources PwC, Sultanate of Oman: key changes to the new Oman Labour Law, September 2023 · DLA Piper, Employment law in Oman · Royal Decree 53/2023 (Labour Law), full text, Oman decree portal · Chambers, Doing Business In 2026: Oman

03Working time and weekend

Working time is 8 hours a day and 40 hours a week. Friday and Saturday are the weekend.

  • Ramadan: Muslim employees work up to 6 hours a day or 30 hours a week.
  • Daily ceiling: total hours including overtime cannot exceed 12 a day.
  • Overtime: paid at basic pay plus 25% by day or 50% by night.
  • Rest: at least two consecutive paid rest days a week.
Sources PwC, Sultanate of Oman: key changes to the new Oman Labour Law, September 2023 · DLA Piper, Employment law in Oman · Royal Decree 53/2023 (Labour Law), full text, Oman decree portal · Khaleej Times, Hijri New Year 1447 AH Oman holiday, December 2025 · Times of Oman, Oman announces 4-day National Day break in November

04Leave and public holidays

Annual leave is 30 days after 6 months. Maternity leave is 98 days and paternity leave is 7 days.

LeaveEntitlement
Annual leave30 days after 6 months
Sick leaveUp to 182 days with graduated pay
Maternity leave98 days
Paternity leave7 days

Sick pay

Days of sick leavePay
Days 1 to 21100%
Days 22 to 3575%
Days 36 to 7050%
After day 7035%

Public holidays in 2026, as announced by the Council of Ministers

HolidayDate
Accession DayThursday 15 January
Al Isra'a wal MirajSunday 18 January
Hijri New YearThursday 18 June
Prophet's BirthdayThursday 27 August
National DayWednesday 25 and Thursday 26 November
Eid Al Fitr and Eid Al
Adha
Announced each year after moon sighting

With the weekend, the National Day holiday gives a four-day break from Wednesday 25 to Saturday 28 November 2026.

Sources PwC, Sultanate of Oman: key changes to the new Oman Labour Law, September 2023 · DLA Piper, Employment law in Oman · Royal Decree 53/2023 (Labour Law), full text, Oman decree portal · Oman Observer, Except for Eids, Oman announces public holidays for 2026 · Times of Oman, Oman announces 4-day National Day break in November, 2026

05End-of-service

Foreign staff receive at least one month of basic salary per year of service, pro rata for part years. A 9% employer savings fund replaces it from 19 July 2027. Omani staff receive no gratuity and are covered by social security.

  • Summary dismissal carries no gratuity.
Sources PwC, Sultanate of Oman: key changes to the new Oman Labour Law, September 2023 · DLA Piper, Employment law in Oman · KPMG Oman, Doing Business in Oman 2026, July 2026

06Unions and strikes

Registered trade unions, sector unions and the General Confederation of Workers hold legal personality.

  • A strike needs approval by three-quarters of a union's general assembly and three weeks' written notice.
  • Strikes are banned in essential services such as oil, ports, airports and public transport.
Sources Royal Decree 53/2023 (Labour Law), full text, Oman decree portal · DLA Piper, Employment law in Oman · Lex Mundi, Oman guide

07Social security

Employers pay social security on each employee's contribution wage. The rates differ for Omani and foreign staff.

Employee groupEmployerEmployeeNotes
Omani employees14.5% from 19 July 20268%Employer: 11% retirement, 1% work injury, 1% maternity and paternity, 0.5% job security, 1% sick and exceptional leave. Employee: 7.5% retirement and 0.5% job security
Foreign employees2% of monthly pay from 19 July 2026No retirement contributionsEmployer: 1% maternity and paternity insurance and 1% sick and exceptional leave insurance
  • The Social Protection Law (Royal Decree 52/2023, amended by Royal Decree 60/2025) sets the rules.
  • Base: basic salary plus fixed allowances in the contract. Bonuses and overtime are excluded.
  • Ceiling: the retirement and injury branches are capped at OMR 3,000 a month. Job security, maternity and sick leave contributions have no ceiling.
  • Sick and exceptional leave: the branch started on 19 July 2026. The employer bears it in full and it has no wage ceiling.
  • Article 68 of the Social Protection Law sets the employee retirement share at 7.5% and the employer share at 11%.
Sources PwC, Social security alert GCC Q1 2026, 2026 · PwC, GCC social security employment updates, 2026 · CMS, The new Oman Social Protection Fund Law: key changes · Al Tamimi, Omani Social Protection Law: Key Timeline Extensions under Sultani Decree 60/2025 · DLA Piper, Social Protection Law under Sultani Decree No. 60/2025, 18 July 2025 · Oman Observer, New payroll, leave insurance reforms begin next week, July 2026 · PwC Worldwide Tax Summaries, Oman: Other taxes, reviewed 7 July 2026

08Omanisation

Employers must employ Omanis. The Minister of Labour sets percentages by sector, activity and profession and lists jobs reserved for Omanis.

  • Employers share a yearly localisation strategy with the Ministry of Labour and plan and train Omanis for leadership roles.
  • A foreign-owned establishment must employ at least one Omani once its registration is a year old (MOCIIP Decision 411/2025). Non-compliance can bring a comprehensive ban on services, whatever the number of employees.
  • Other establishments with 10 or more employees submit an employment plan within three months of notice from the Ministry of Labour. Establishments with fewer than 10 employees have six months.
  • Non-compliance after notice triggers an automatic ban on new licences.
  • Part-time work and minimum-wage rules cover Omani workers only.

Fines (Labour Law, Articles 143 and 144)

  • OMR 500 to 1,000 for each Omani an employer is required to employ. The employer has six months from discovery to comply and the fine doubles on repetition.
  • Employing a non-Omani in a job reserved for Omanis carries a fine of OMR 1,000 to 2,000, imprisonment of 10 days to one month, or both. The Ministry can also impose a recruitment ban of up to two years.

Other consequences

  • Work permit fees fall 30% for employers that meet the prescribed Omanisation rates and double for those that do not (Ministerial Resolution 602/2025).
  • Tender Board Circular 2025/2 tells government bodies not to contract with companies that miss their Omanisation rates.
Sources Al Tamimi, New Omanisation Mechanism for Businesses, updated 16 March 2026 · Royal Decree 53/2023 (Labour Law), full text, Oman decree portal (Articles 143 and 144) · PwC, Sultanate of Oman: key changes to the new Oman Labour Law, September 2023 · Oman Observer, MOL issues decision on work permits and work practice permits, 26 October 2025 · Oman Observer, No contracts with firms not meeting Omanisation rates: Tender Board, 2 June 2025

09Work permits and fees

The employer obtains approval from the Ministry of Labour to bring in an expatriate for a named profession. The work permit is valid for 24 months, matching the residence period, and is not renewable.

  • Ministerial Resolution 602/2025 (October 2025) sets the 24-month validity.
  • The separate work practice permit lets the worker practise the profession. It lasts up to 24 months and is renewable.

Work practice permit fees

ItemFee
First-class professionsOMR 301
Second-class professionsOMR 251
Third-class professionsOMR 201
Investor-class occupationsThe first-class fee
Changing the profession on
the permit
OMR 5
Late renewalOMR 10 a month, capped at OMR 500 per worker

Fees fall 30% for employers that meet their Omanisation rates and double for those that do not.

Sources Oman Observer, MOL issues decision on work permits and work practice permits, 26 October 2025 · Oman Observer, Labour ministry eases work permit rules, 27 October 2025 · DLA Piper, Employment law in Oman · KPMG Oman, Doing Business in Oman 2026, July 2026

10Visas and residence

A foreign employee's right to work and live in Oman is tied to the employer. Investor residency and Golden Residency are the programmes that need a qualifying investment.

  • Dependants reside through the employee's sponsorship. They cannot work without their own work permit.

Investor residency programme

The programme has run since October 2021 under Invest Oman, MOCIIP.

  • 10 years: OMR 500,000 in an Omani LLC, closed joint stock company or government bonds. Or property worth OMR 500,000. Or a company employing at least 50 Omanis. Applicant fee OMR 551.
  • 5 years: OMR 250,000 in an LLC or public joint stock company, or property of that value. Or retirement in Oman after two years of employment, with income of OMR 4,000 a month. Applicant fee OMR 326.

Golden Residency

Golden Residency launched on 31 August 2025. It gives a renewable 10-year residency from OMR 200,000 through any of seven routes.

  • A company at least one year old, with the applicant's stake worth OMR 200,000 or more.
  • A completed unit with a title deed in an integrated tourism complex.
  • Government development bonds in the applicant's name with two years left to maturity.
  • Listed shares with a market value of at least OMR 200,000.
  • A fixed deposit of OMR 200,000 or more for five years, renewable in five-year blocks.
  • A company with at least 50 Omani employees and capital of OMR 200,000 or more.
  • Nomination by a company registered under the Foreign Capital Investment Law with capital of at least OMR 200,000.

Cover extends to first-degree relatives without limit on number or age. Holders can employ up to three domestic workers. Residence is self-sponsored and does not carry a work permit.

Sources Oman Observer, MOL issues decision on work permits and work practice permits, 26 October 2025 · DLA Piper, Employment law in Oman · KPMG Oman, Doing Business in Oman 2026, July 2026 · Fragomen, Long-term residency program for foreign investors launched, 2021 · Oman Observer, Oman to launch golden residency for foreign investors on Sunday, 30 August 2025 · Oman Observer, Oman launches 10-year Golden Residency, 31 August 2025 · MOCIIP news item on Golden Residency

What changed

  • 19 July 2028Announced: work injury cover for foreign staff starts, with a 1% employer contribution. Royal Decree 60/2025 moved it from 2026.
  • 19 July 2027Announced: for foreign staff the employer pays 9% of monthly basic salary into an individual account at the Social Protection Fund. It replaces end-of-service gratuity for employment from that date. Gratuity earned before that date stays payable.
  • 19 July 2026Sick and exceptional leave insurance started, with a 1% employer contribution. The Omani employer total became 14.5% and the foreign staff employer total 2%.
  • June 2026Royal Decree 65/2026 added job security contributions for Omanis working in other GCC states.
  • 26 October 2025Ministerial Resolution 602/2025 set work permits at 24 months and tied fees to Omanisation.
  • 2 October 2025MOCIIP Decision 411/2025 required foreign-owned companies to employ at least one Omani after one year.
  • 31 August 2025Golden Residency launched, from OMR 200,000.
  • 13 July 2025Royal Decree 60/2025 amended the Social Protection Law.
  • 2 June 2025Tender Board Circular 2025/2 told government bodies not to contract with firms that miss Omanisation rates.

This page is general information, not legal or tax advice.

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