Oman EOR & PEO

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Hire in Oman

Oman has an available labor force of over 2.3 million from a population of approximately 4.5 million. Its workers are well-educated and highly skilled, with a strong work ethic and excellent interpersonal abilities. While unemployment in Oman is low, competition for jobs is high, and employees are driven to exceed performance expectations.

Many citizens have specialist knowledge and experience in sectors including IT, engineering, healthcare, tourism, maritime industries, and e-commerce with high levels of cultural understanding and the ability to work harmoniously in diverse teams. Average wages vary greatly depending on industry, age, and background but employers should expect a high productivity-to-cost ratio from employees comfortable with remote and office-based working.

Facts & Stats

hire employees in Oman

What Is a Oman EOR?

An Employer of Record (EOR) is a service that brings together local workers in Oman with foreign employers seeking to expand their workforce. There are many reasons a business may wish to employ staff in a new territory, including lower wage requirements, strategic benefits of the location, and access to cultural understanding.

Recruiting in a new country, however, can be costly, time-consuming, and fraught with complications. As an established local expert, an EOR helps navigate the complexities of establishing a new workforce while assuming all human resources responsibilities and legal liabilities on behalf of the foreign client. This makes the process quick and efficient and allows businesses to recruit in Oman without trepidation.

You will often see the term Professional Employer Organization (PEO) used interchangeably with EOR. While these two services are similar in many ways, there is a key distinction. An EOR acts as a legal employer with Oman on behalf of its clients, removing the need for the foreign business to establish a legal entity within the country. A PEO acts only as a recruiter and human resources management service, so any business using one is still required to set up a local entity before it can begin employing local workers.

Save Money And Time with A Oman EOR

What Are the Benefits of a Oman EOR?

When hiring in Oman, the merits of working with an EOR become quickly and clearly apparent. Using this service allows foreign companies to save time and money while reducing risk and removing barriers, both legal and cultural.

Some specific benefits of working with an Oman EOR include:

No entity needed: The legal requirement to establish an entity within Oman before beginning to recruit a local workforce is the biggest barrier for any foreign business. It is complex, expensive, and cannot be completed quickly. An EOR acts as a proxy entity, removing this hurdle completely.
Efficient onboarding: Working with an EOR allows any business to begin their recruitment in Oman immediately. More than this, it grants access to a talent that is vetted by experts with a strong knowledge of local cultures. This increases the likelihood of obtaining the best talent with the minimum expenditure of resources.
Outsourced liability: Handling the complexities of human resource management and employment law is one of the toughest challenges any business faces. When operating in an unfamiliar territory, the potential for complications is even greater. A knowledgeable and experienced EOR will assume full responsibility for every aspect of employee management, including full legal liability, should any issues arise.
Continuity of service: As an organization exclusively responsible for hiring and maintaining workforces, an EOR is perfectly positioned for ongoing recruitment, retention, and replacement. It will maintain awareness of legal or cultural changes and local events that may affect any or all of these processes. This ensures clients experience maximum efficiency and minimum disruption.

Horizons is Best IN Class

Why Choose Horizons?

Horizons stands out as a Oman EOR through:

A strong regional presence in the Middle East, meaning senior management are on the ground to deal with any issues.
Client-focused infrastructure. Horizons won’t oversell you on products and services you don’t need. Horizons offers the easiest platform to compliantly hire and pay people worldwide.
Cost-effective solutions. At $299 per employee, per month, no EOR in Oman is more affordable. The cost is 100% transparent (onboarding, offboarding, deposit, no extra charges).
A customer-first culture. Horizons is an efficient bootstrapped company. It is not an externally-funded company burning investor cash to aggressively acquire new clients. Horizons is the only EOR that grows with its customer, reflecting the level of care and personal attention provided to each customer. Horizons will carefully advise on the best setup in each country: the type of contract needed, how to structure your benefits, and how to offboard a person while minimizing the risk of conflicts and extra cost
A long-term partnership. Horizons is the only EOR platform with a recruitment arm — a direct response to client demand. If any employee is leaving, or if our clients want to explore a new country, Horizons can recruit new candidates directly for the client. Horizons is:
- The only EOR doing this in-house — no subcontracting
- The only EOR doing this without a retainer — clients are only charged upon success
- The only EOR charging just a 2% fee per month.

Step-by-step Oman EOR

How Does a Oman EOR Work?

At its core, an Oman EOR is a facilitator of employment. By establishing a triangle of mutually beneficial relationships, an EOR allows local people to find work and foreign businesses to find talent. It then manages the administration of arrangements between these parties to ensure they are legally compliant and fair to all parties.

The main responsibilities of an EOR are:

Hire your employees: The first task any EOR will complete after agreeing to work for a client is recruiting. If an EOR has an existing pool of talent, it may approach individuals already on its books. If not, it will advertise and interview to get the right people for each role.
Manage employment contracts and onboarding: Once the right candidates have been found and terms of employment have been agreed. An EOR will draft contracts to be signed and begin the onboarding process. They will ensure every recruit is legally entitled to work and all local regulations are met before completing their handover to the client.
Process payroll and handle employment taxes: Once contracts are signed, an EOR becomes the worker’s legal employer. As such, it assumes responsibility for completing payroll and ensuring all taxes are paid. While the funding for this will ultimately be covered by the client company, the employee and tax payments are made directly by the EOR to both the worker and the authorities.
Administer benefits: Wages and taxes are not the only responsibilities of an employer when compensating their workers. Social security payments, bonuses, and other agreed benefits must also be arranged and administered for every worker. So long as any employee remains under contract with the EOR, all benefits must be taken care of.
Take care of exit procedures: It may last just days, or 40 years, but every employment ends eventually. An EOR remains responsible for its workers from the moment a contract is signed until all exit procedures have been completed. Whether termination is due to the completion of the role, the fault of the employee, or any other circumstances, the EOR will be aware of all legal requirements and expectations and will manage the end of every working relationship with the same care and professionalism as the start.

stay compliant with Oman labor laws

Labor Laws

After removing the need to establish an entity in Oman, one of the most important functions of an EOR is to ensure compliance with local labor laws. These can range from contract requirements to holiday entitlement and severance payments.

Employment contract types

When an employment contract is drafted in Oman, several mandatory clauses must be featured. These include the details of each party, details of the role, start date, working hours, salary, holiday entitlement, and notice period. The contract itself can then take one of four main forms:

Permanent: Issued by Royal Decree 35/2003, the Oman Labour Law states a permanent contract is for full-time work with no predefined end date that can be offered to both Omani and expatriate employees. A similar but less formal arrangement, known as an Appointment Decision, can be made for Omani nationals only.

Fixed-term: The Civil Transactions Law, issued by Royal Decree 29/2013, defines a fixed-term contract in Oman as one that establishes full-time employment with a specified end date within five years of commencement. If a fixed-term employee continues in the same role after five years, their contract is automatically transformed into a permanent one.

Part-time: Similar in almost every respect to a permanent contract, a part-time contract in Oman is simply one in which the agreed working hours are less than a standard work week. Part-time employees are entitled to most permanent and fixed-term benefits on a prorated basis.

Temporary / Sahem: Regulated by the Ministry of Labour, a temporary or Sahem contract is one for the completion of fixed tasks or project work with defined parameters. These should be no longer than one year in duration.

Project-based

Fixed-term

Indefinite

Working hours in Oman

The Oman Labor Law dictates no worker should be expected to work more than 8 hours in a single day, or 40 in a working week, and no more than 12 hours with overtime. During Ramadan, Muslim workers’ standard hours should be reduced to 6 hours per day or 30 hours a week. Where overtime is agreed upon, employers should pay 125% of standard hourly wages during the day, 150% overnight, and either double pay of time in lieu of rest days.

Overtime must be compensated in the following way:

Holiday Schedule in Oman [2024]

Employers must observe eight national public holidays each year by allowing paid time off or making overtime arrangements. Many of these are centered around the Islamic calendar, with others marking Sultan Qaboos Mourning Day in January, Renaissance Day in July, and Oman National Day in November. Various states also have additional holidays, which must be factored into any contract of employment.

Date	Holiday name
11 Jan, 2024	Accession Day of Sultan Haitham bin Tarik
8 Feb, 2024	Isra and Mi’raj
10 Apr, 2024	Eid al-Fitr
9 Apr, 11 Apr to 13 Apr	Eid al-Fitr Holiday
16 Jun, 2024	Day of Arafah
17 Jun, 2024	Eid al-Adha
18 Jun to 20 Jun	Eid al-Adha Holiday
7 Jul, 2024	Muharram
16 Sep, 2024	The Prophet’s Birthday (Tentative Date)
18 Nov, 2024	National Day
19 Nov, 2024	National Day Holiday

Paid time off

In addition to public holidays and annual leave, other types of paid time off that should be offered to Omani workers include leave for maternity, paternity, study, and – for Muslim workers – Hajj. 15 days can be offered to perform Hajj on just one occasion, while 15 days of paid leave per year should be given to Omani nationals who are studying and need to sit exams. Certain personal or family circumstances also trigger leave entitlement, including three days for marriage and three days for the death of a close family member.

Sick leave in Oman

For sickness, workers in Oman are entitled to a maximum of 10 weeks each year. The first two weeks are paid at full rate, the next four at 75%, and the final four at 50%. A doctor’s note will usually be requested for absences lasting three days or more.

Less than 6 months of sick leave:

(percentage of regular wages owed to the employee)

Over 6 months of sick leave

In order for employees to receive the full wages due to them, workers must present a valid medical certificate from a certified doctor to their employer.

Maternity leave in Oman

Maternity leave is set at 98 days, while paternity is three days.

Annual leave in Oman

According to Royal Decree No 35/2003 and its amendments, every permanent full-time worker in Oman is entitled to 30 calendar days of paid annual leave. These are accrued on a month-by-month basis. Any not taken can be carried over or, if all parties agree, paid at a standard hourly rate. Timing of annual leave is determined by mutual agreement, though workers are expected to take two consecutive weeks at least once every two years. Leave entitlement is pro-rated for part-time workers.

Termination & severance in Oman

When permanent employment in Oman is ended early with no fault from the worker, written notice must be given. The standard period when salary is paid monthly is 30 days. This can be reduced to 15 days when other payment arrangements are in place. During probationary employment, which should last no longer than three months, just seven days’ notice is required. Unless the termination is due to gross misconduct, severance must be paid. This is calculated at one month’s salary per year worked for expatriate employees. For Omani nationals, it should be 15 days’ salary for each of the first three years, rising to 30 days’ salary for each additional year.

Oman's compulsory social security contributions

Social security contributions are mandated by the government to ensure the welfare of employees in the private sector. These contributions are primarily directed towards the Public Authority for Social Insurance (PASI). Employers are required to contribute 10.5%, employees are required 7% whiles the Omani government also contributes 5.5% to the social security fund.

Social security covers various benefits such as old age pension, disability, survivor benefits, health and maternity benefits.

Oman social security for foreigners

Typically, foreign employees are not covered by the mandatory social security scheme in Oman. Instead of PASI benefits, foreign employees are entitled to an end-of-service gratuity, which is a lump sum payment made by the employer upon termination of employment. This is calculated based on the employee’s length of service and final salary.

Individual income tax

Oman does not levy personal income tax on salaries, wages, or other income earned by individuals. This policy applies to both Omani citizens and foreign residents working in Oman.

Health insurance

Omani nationals have access to government-funded healthcare services through the Ministry of Health. These services include free or subsidized medical care at public hospitals and clinics. Some employers may offer additional private health insurance to their Omani employees, providing access to private healthcare facilities and broader coverage options.

Most expatriates in Oman receive health insurance through their employers as part of their employment benefits. Employers are generally required to provide health insurance coverage to their expatriate employees, which typically includes access to private hospitals and clinics.

hassle-free Omanis compensation & benefits

Compensation & Benefits

Oman compensation laws

While there is no mandated minimum wage for expatriate workers, Ministerial Decision 13/1979 stipulates every Omani national should be paid at least OMR 225 per month with a further OMR 100 going towards bonuses, housing, and transportation.

13 month salary in Oman

Oman has no requirement to pay a 13th-month salary or bonuses for employees of any kind.

Social security for Omanis nationals

For Omani nationals, a 17.5% social security contribution should be paid on all earnings. This is divided into 7% of salary from the employee and 10.5% from the employer.

Oman Employer Of Record Peo

Navigation

Hire in Oman

What Is a Oman EOR?

What Are the Benefits of a Oman EOR?

Why Choose Horizons?

How Does a Oman EOR Work?

Labor Laws

Employment contract types

Working hours in Oman

Compensation & Benefits

Frequently asked questions

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Frequently asked questions

What are the requirements for hiring expatriates in Oman through an EOR?

When hiring in Oman, there are two types of workers available: Omani nationals and expatriates residing within the country. Both are protected by basic labor laws, which mandate maximum hours, holiday entitlement, sick leave, and termination protocols. While Omani nationals must be paid a minimum wage, however, there is no such requirement for expatriate employees.

How does an EOR in Oman ensure compliance with local tax laws?

When operating in Oman, it is the responsibility of an EOR to ensure full compliance with all local labor laws and regulations. This includes tax laws, whether applicable to the client, the workers, or the EOR itself. As a local employment expert, an EOR must maintain current knowledge of all tax requirements and obligations.

Oman EOR & PEO

Start hiring in Oman

Simple, compliant hiring with Horizons EOR & PEO

Hire in Oman

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EOR Platform

EOR Cost

Time-to-hire

Contracts

Local benefits

180+ Countries

hire employees in Oman

What Is a Oman EOR?

Save Money And Time with A Oman EOR

What Are the Benefits of a Oman EOR?

Horizons is Best IN Class

Why Choose Horizons?

Step-by-step Oman EOR

How Does a Oman EOR Work?

stay compliant with Oman labor laws

Labor Laws

Employment contract types

Project-based

Probationary period

Termination

Severance

Fixed-term

Probationary period

Termination notice period

Severance

Indefinite

Probationary period

Termination notice period

Severance

Working hours in Oman

Overtime must be compensated in the following way:

For a regular workday:

For a rest day:

For a statutory holiday:

Paid time off

Under 1 year of employment

1-10 years of employment

10-20 years of employment

20+ years of employment

Sick leave in Oman

Less than 6 months of sick leave:

Under 1 year of employment

1-10 years of employment

10-20 years of employment

20+ years of employment

Over 6 months of sick leave

Under 1 year of employment

1-3 years of employment

3+ years of employment

Maternity leave in Oman

Annual leave in Oman

Termination & severance in Oman

Oman's compulsory social security contributions

Oman social security for foreigners

Individual income tax

Health insurance

hassle-free Omanis compensation & benefits

Compensation & Benefits

Oman compensation laws

13 month salary in Oman

Social security for Omanis nationals

Hire in Oman in 24h without your own local entity.

Frequently asked questions

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