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Overview
Omani Rial (OMR)
CURRENCY
Muscat
CAPITAL
monthly
PAYROLL FRECUENCY
10
PUBLIC HOLIDAYS
0 to 12.50
EMPLOYER TAXES
13TH / 14TH SALARY
The 13th Salary in this region is usual and typically given at the end of the year.
Employee and employeer taxation in Oman
Employer
Company Payroll Contributions
- 10.50%
Social Security
- 1.00%
Occupational Injuries and Illnesses
- 1.00%
Labor Security Fund
0% - 12.5%
Total Employment Cost
Employee
Worker Payroll Contributions
- 7.00%
Social Security
- 1.00%
Labor Security Fund
0% - 8%
Total Employee Cost
Employee Income Tax in Oman
The country has no personal income tax
Payroll Contributions in Oman
Payroll Cycle
In Oman, the frequency is monthly and you can complete it effectively with payroll outsourcing. Besides, the employer must pay its workers at least once a month.
13th Salary
Employment laws do not provide for the 13th month pay.
The work week consists of 45 total hours, 9 hours a day. However, during Ramadan, these hours are reduced to 30 hours per week and 6 hours per day.
Employee Benefit in Oman
The labor law does not establish more common benefits for the citizens of Oman
Visa and work permit in Oman
By using contractor management services, you can obtain a visa for foreigners who must enter the country. In addition, Oman offers various types of visas, which include tourist visas, employment visas, and relative/friend visit visas. They also grant residence/family reunion visas, investor resident visas, student resident visas, and transit visas.
Likewise, these visas can be single, double, or multiple entries for 90-day visas with 180-day intervals. Thus, single tickets are for a single ticket, double tickets for only two tickets, and multiple tickets for consecutive visits. In any case, you can also manage these visas with the Employer of Record in Oman.
VAT in Oman
In Oman, the standard VAT rate is 5.00%.
Working Hours in Oman
General
The work week consists of 45 total hours, 9 hours a day. However, during Ramadan, these hours are reduced to 30 hours per week and 6 hours per day.
Overtime
Work contracts and collective agreements establish overtime, which are those that exceed the weekly hours. In addition, employees in Oman who are required to work overtime on regular or public holidays must not work more than 12 hours.
With the Employer of Record in Oman you can manage the payments that exceed 45 hours per week. This paid must be at 125% of the regular salary. However, this applies to daytime hours, for nighttime, the payment is 150% of the regular salary.
Working Week
Sunday to Thursday.
Employee Termination in Oman
Termination Process
Manage termination through the Employer of Record in Oman, which varies depending on the work contract and current collective agreement. Also, this process depends on the type of contract and the reason for termination. Besides, employers must provide a valid reason, a notice period, and an end-of-service gratuity.
However, the Labour Law, in article 40, establishes the circumstances of serious misconduct for the dismissal of an employee. In this case, the employer can terminate the contract without prior notice and without having to pay a bonus. Therefore, an employer cannot terminate the contract of the employee without good cause.
Notice Period
The notice period must be at least one month if the employee receives his salary monthly. However, for other employees, the notice period is 15 days but a different period may be agreed upon in the contract. With a Professional Employee Organization, you can manage and notify these notice periods in writing.
Severance Pay
In Oman, severance pay must be paid by the employer based on the years of service of each employee:
- 15 calendar days of salary for each year of service for the first 3 years of employment.
- 30 calendar days of salary for each year of service after the first 3.
Probation Period
Employment contracts and collective agreements define trial periods but must not exceed 3 months.
Employee Leaves in Oman
Paid Time Offs
Also, with the services of an Employer of Record in Oman, you will be able to manage the 30-day annual leave for your employees. In this case, the payment consists of 100% of the regular salary of the worker. However, only employees with at least 6 months of consecutive work in the company are entitled to obtain these vacations.
Public Holidays
There are 10 national holidays throughout the year.
Vacation Holidays
There are 30 vacation holidays throughout the year.
Sick Days
Employees must receive 10 days of sick leave at 100% of their regular salary. However, illnesses that last more than two weeks are paid for by social security as follows:
- 75% of salary for weeks 3 and 4 of leave.
- 50% of salary for weeks 5 and 6 of leave.
- 25% of the salary week 7 to 10 of the leave.
Paternity Leave
There is no provision of law for this license.
Paternal Leave
There is also no provision for parental leave.
Other Leave
- Bereavement leave. In this case, it is a license for the death of the father, mother, spouse, brother, grandfather, or son. Thus, the worker will receive 3 days of leave but only 2 for the death of an uncle or aunt. In contrast, a Muslim woman whose husband dies is entitled to 130 days of leave.
- Marriage license. An employee is entitled to 3 days of leave.
- Hajj pilgrimage. With this leave, an employee has 15 days to do the Hajj but only once during his/her employment. However, the employee must have one year of service to enjoy this leave.
- Exam permit. In this case, it is a permit for workers in Oman to study in one of the schools, institutes, colleges, or universities. Thus, this license is for 15 days.
Maternity Leave in Oman
The Labour Law of Oman, in article 83 (5), states that women in the private sector are entitled to 50 days of this leave. In addition, it includes periods before and after delivery, which you can pay with PEO services at 100% of salary. Likewise, employees are entitled to this leave 3 times during their entire service in the same company.
On the other hand, Civil Service Law No. 120/2004 establishes that public sector employees can take this license 5 times.
There are 50 leave throughout the year.