Payroll and Benefits Guide Oman
Last updated: Mar 03, 2026
Contribution
| Employer Payroll Contributions | |
|
10.50%
|
Social Security
|
|
1.00%
|
Occupational Injury and Disease
|
|
1.00%
|
Job Security Fund
|
| 12.50% |
Total Employment Cost |
| Employee Payroll Contributions | |
|
7.00%
|
Social Security
|
|
1.00%
|
Job Security Fund
|
| 8.00% |
Total Employee Cost
*There are no payroll contributions for foreign/expatriate workers |
| Employee Income Tax | |
| Oman does not have personal income tax. |
Employer taxes
Employee taxes
Minimum Wage
General
In Oman, the minimum wage is 325 OMR per month of which 225 OMR must be salary and the remaining 100 OMR must be paid as a bonus.
MINIMUM WAGE (PER MONTH)
Payroll
Payroll Cycle
In Oman, the payroll frequency is typically monthly. The employer must make salary payments at least once a month.
13th Salary
There is no legal requirement for employers to pay a 13th-month payment.
Working Hours
General
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
| Aspect | Regulation Details | Notes |
| Maximum Ordinary Hours | 8 hours per day or 40 hours per week, excluding mandatory breaks (Article 68). | This was reduced from the previous 45-hour work week. Overtime is any work beyond these limits. |
| Ramadan Reduction | Maximum hours for Muslim employees during Ramadan are 6 hours per day or 30 hours per week. | Overtime begins after these reduced hours. |
| Absolute Daily Cap | Total original and extra work hours must not exceed 12 hours per day (Article 70). | This effectively caps overtime at a maximum of 4 hours per day. |
| Exemptions | Employees in supervisory or managerial positions are typically exempt from the overtime rules. | The specific criteria for “managerial” status are defined by the Ministry of Labour. |
| Consent | The employer must obtain the employee’s written agreement before requiring them to work overtime, except in certain urgent circumstances. |
Mandatory Overtime Pay Rates
Overtime is compensated with a supplement paid in addition to the employee’s basic salary for the extra hours worked. The premium rate depends on the time and day of the work.
| Day/Condition | Minimum Compensation Rate (Supplement) | Total Pay Rate | Notes |
| Daytime Overtime (Working Days) | +25% of the basic hourly wage. | 125% | Applies to hours worked during the day. |
| Nighttime Overtime (9:00 PM to 5:00 AM) | +75% of the basic hourly wage. | 175% | This premium was increased by the 2023 law. This applies to overtime performed during the designated night hours. |
| Weekly Rest Day (e.g., Friday) | +100% of the basic hourly wage (Double Pay). | 200% | This premium is paid in addition to the employee’s normal basic pay for the day. |
| Official Public Holiday | +200% of the basic hourly wage (Triple Pay). | 300% | This high premium is mandated for work on an official public holiday. |
Compensation Method
| Compensation Method | Statutory Requirement | Notes |
| Primary Method (Pay) | Mandatory payment at the applicable premium rate (125% to 300%). | Overtime pay must be calculated based on the employee’s basic salary, excluding allowances. |
| Alternative Method (TOIL) | Compensatory time off in lieu (TOIL) or an agreed-upon fixed allowance may be paid instead of overtime payments in specific sectors (e.g., ports, airports), subject to Ministry approval. | For work on an official holiday, the employer may grant two additional rest days in lieu of the 300% pay, by agreement (Article 72). |
Leave
Annual Leave (vacation)
Employees have the right to an annual leave of 30 calendar days paid at 100% of their regular salary. Employees earn the entitlement following six months of consecutive employment at one organization. Unused leave can carry over into the next year.
PTO carryover
In Oman, statutory annual leave can be carried over, but generally only up to one year if not taken when due. Employers cannot forfeit accrued statutory leave with a blanket “use-it-or-lose-it” policy, and unused leave must be paid out on termination.
Public Holidays
The local government decides each year if holidays falling on the weekend are lost or moved to a working day in lieu.
Religious holidays are determined by the lunar cycle and will show as tentative until they are confirmed nearer the date of the holiday.
| Date | Day | Holiday | Notes |
|---|---|---|---|
| 1 January 2026 | Thursday | New Year’s Day | Standard holiday |
| 16 January 2026 | Friday | Al-Isra’a Wal Mi’raj (The Prophet’s Ascension) | |
| 20 March 2026 | Friday | Eid al-Fitr (End of Ramadan) | |
| 21 March 2026 | Saturday | Eid al-Fitr Holiday Period | |
| 22 March 2026 | Sunday | Eid al-Fitr Holiday Period | |
| 23 March 2026 | Monday | Eid al-Fitr Holiday Period | |
| 27 May 2026 | Wednesday | Eid al-Adha (Feast of Sacrifice) | |
| 28 May 2026 | Thursday | Eid al-Adha Holiday Period | |
| 29 May 2026 | Friday | Eid al-Adha Holiday Period | |
| 30 May 2026 | Saturday | Eid al-Adha Holiday Period | |
| 17 June 2026 | Wednesday | Islamic New Year (Hijri) | |
| 26 August 2026 | Wednesday | The Prophet’s Birthday | |
| 18 November 2026 | Wednesday | National Day | Standard holiday |
Sick Days
An employee is entitled to 10 days of sick leave compensated by the employer at 100% of their regular income. Any sickness in excess of two weeks is paid by Social Security at a reduced rate as follows:
- Week 3-4 of sickness – 75% of their wages
- Week 5-6 of sickness – 50% of their wages
- Week 7-10 of sickness– 25% of their wages
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. An employee is entitled to maternity leave three times throughout her employment in one organization. Civil Service Law No. 120/2004 allows female employees working in the public sector to take maternity leave up to five times throughout their service.
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.
Other Leave
- Bereavement leave: for the death of a father, mother, spouse, sibling, grandparent, or child, an employee is entitled to three days of leave. For the death of an aunt or uncle, two days’ leave is granted. In the event of a working Muslim woman losing her husband, the leave entitlement is increased to 130 days.
- Wedding leave: an employee is entitled to 3 days.
- Hajj Pilgrimage: an employee gets 15 days of leave to perform the Hajj Pilgrimage once during their employment following one year of service.
- Exam leave: granted to employees in Oman for the opportunity to study in one of the schools, institutes, colleges, or universities. The leave entitlement for study leave is 15 days.
PAID MATERNITY LEAVE (DAYS)
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. Employers must have sufficient grounds for terminating an employee and must provide a formal notice period and end-of-service gratuity.
An employer may terminate an employment contract without notice and without payment of end-of-service gratuity on the grounds of gross misconduct in circumstances specified in Article 40 of the Labor Law. An employer may not terminate an employment contract without good cause.
| Salary payment interval / date | Final payment on termination | Bank account / payment method requirement |
|---|---|---|
| Wages must be paid at agreed intervals (monthly or otherwise) and in practice must be paid within 7 days after the end of the wage period. | When the employment contract ends the employer must settle all wages, accrued leave, and end-of-service benefits. Settlement is expected promptly. | Under the newly introduced Wage Protection System (WPS) and regulatory guidance: salaries must be transferred into bank accounts or “financial institution accounts” in many cases, and by September 2025 at least 75% of all payments must go through the WPS. |
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.
All notices must be provided in writing.
Severance Pay
The end of service gratuity is based on the employee’s final salary. The employee is entitled to one month’s pay per each year worked.
Probation Period
In Oman, the probation period must not exceed three months.
Immigration
Foreigners are usually requested to obtain entry visas to travel to Oman. Visas for Oman are broadly categorized as a tourist visa, employment visa, relative/friend visit visa, family joining/resident visa, investor and student resident visa, and transit visa.
They can be issued as single-entry, double-entry, or multiple-entry visas for visits up to 90 days in periods of 180 days. The single-entry visa grants one-time entrance, whereas double-entry visa holders may travel twice in predetermined timeframes. A multiple-entry visa allows for consecutive visits to the country.
VAT
General
The standard rate of VAT in Oman is 5%.
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Payroll and Benefits Guide
in Oman
What’s covered in this guide:
- Employer/employee contributions
- Minimum wage
- Working hours
- Visa requirements
And more...
Public Holidays Calendar
| Date | Day | Holiday | Notes |
|---|---|---|---|
| 1 January 2026 | Thursday | New Year’s Day | Standard holiday |
| 16 January 2026 | Friday | Al-Isra’a Wal Mi’raj (The Prophet’s Ascension) | |
| 20 March 2026 | Friday | Eid al-Fitr (End of Ramadan) | |
| 21 March 2026 | Saturday | Eid al-Fitr Holiday Period | |
| 22 March 2026 | Sunday | Eid al-Fitr Holiday Period | |
| 23 March 2026 | Monday | Eid al-Fitr Holiday Period | |
| 27 May 2026 | Wednesday | Eid al-Adha (Feast of Sacrifice) | |
| 28 May 2026 | Thursday | Eid al-Adha Holiday Period | |
| 29 May 2026 | Friday | Eid al-Adha Holiday Period | |
| 30 May 2026 | Saturday | Eid al-Adha Holiday Period | |
| 17 June 2026 | Wednesday | Islamic New Year (Hijri) | |
| 26 August 2026 | Wednesday | The Prophet’s Birthday | |
| 18 November 2026 | Wednesday | National Day | Standard holiday |
Thank you for this information, i will be in oman very soon
Does employers pay directly to foreigner’s home account or omani account.
A local bank account is usually required for salary payments.
what are the deductions to be made for Expats working in Oman ? Anyone help me with the paysheet format for Omani employees and Non-Omani employees ?
There are no payroll contributions for foreign or expatriate workers therefore the pay slip will only show their salary and other applied deductions offered by the employer. Omani workers pay slip will have all the mandatory payroll items including social security and Jon security fund contributions.