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Country Introduction – Oman
Capital – Muscat
Currency – Omani Rial (OMR)
Population – 5.1 million
GDP – $76.33 billion
Language – Arabic
Major Religions – Islam
The Sultanate of Oman is located in the Middle East at the south-eastern coast of the Arabian Peninsula at the confluence of the Persian Gulf and Arabian Sea.
Renowned in ancient times for its frankincense and metalworking, Oman occupies a strategically important location, for which it has long been a prize for empire builders. In the 16th century Muscat was seized by Portugal, which held the city until 1650. During the 18th century the Āl Bū Saʿīd dynasty expelled a Persian occupation and established Omani control over much of the Persian Gulf. The Āl Bū Saʿīd weathered much political turbulence but preserved its hold on power into the 21st century—largely by maintaining close relations with the United Kingdom.
The once insular country now actively encourages tourism, and travellers come from afar to enjoy its hospitality and unspoiled landscapes. Interestingly Oman has four UNESCO World Heritage sites. Coffee is the national beverage of Oman, attracting coffee aficionados from across the globe.
Contract of Employment
All employment contracts in Oman must be in Arabic and are required to state the terms of employment, termination period, probation period and compensation in OMR. Written employment contracts are legally required.
Minimum of 3 months Up to a maximum of 6 months.
The minimum notice period in Oman is 30 days for employees resigning or for employers terminating agreements.
Working week is Sunday to Thursday. 45 hours per week.
Overtime hours in excess of the 45 hours per week are paid at 1.25x the monthly salary rate. Overtime should be stated in the employment agreement.
An employee is entitled to take annual leave with full salary for a period of not less than thirty (30) calendar days, upon completion of six months of service. Based on the requirements of the work, the leave may be divided and availed at different times. An employee must take at least one two-week period of leave in two years.
If an employee leaves the employment before utilising the full annual leave available to him then he/she is entitled to seek the basic wage for the unused period of his/her accrued annual leave.
The employee must produce a medical certificate as proof of sickness. Any additional time off due to sickness is covered by Social Security at a reduced rate as follows:
– First two weeks leave: full pay
– Following two weeks leave: paid ¾ of the full salary
– Following two weeks leave: paid ½ of the full salary
– Following four weeks leave: paid ¼ of the full salary
The employee must produce a medical certificate to establish his/her sickness, and in the event of a dispute, the matter has to be referred to the medical committee, whose decision in matters of sickness is final. The employment contract may be terminated if the sickness of an employee compels him/her to discontinue work for a continuous or an interrupted period of not less than ten weeks during a year.
An employee is entitled to six (6) days of emergency leave with full salary in a year for emergency circumstances. Each block of emergency leave cannot exceed two days. The emergency leave is in addition to the thirty days annual leave period.
An employee may avail special leaves only under the following circumstances:
– 3 days in case of marriage (once only)
– 3 days in case of death (close blood relations)
– 2 days in case of the death of an uncle or an aunt
– 15 days for the performance of Al-Haj (pilgrimage)
– 130 days for a working Muslim wife in the event of her husband’s death
– 15 days during the year, in the case of an Omani employee who is also an associate student with one of the schools, institutes, colleges or universities, for the purpose of sitting an examination.
Expecting mothers are entitled to 50 days off for maternity leave, paid in full by the employer. They are allowed time off before and after the birth. Women are allowed paid maternity leave 3 times during their employment with one organisation.
There is no provision for Paternity leave.
VAT / GST:
5% VAT rate.
There is no income tax in Oman.
There are no employment contributions for foreign employees in Oman.
For Omani nationals the contributions are as follows:
Employer – 12.5% PASI of Gross Salary
Employee – 8% PASI of Gross Salary. Deducted from Employers Salary.
There are 10 days of paid public holidays in Oman.
– Isra’a Wal Mi’raj
– Eid al-Fitr Holiday
– Eid al-Adha Holiday
– Renaissance Day
– Islamic New Year
– Prophet Muhammad’s Birthday
– National Day
Employee Gratuity Payment as per law (end of employment):
Length of employment: 1 to 3 years
Gratuity: 15 days basic salary for each year of service
Length of employment: 3 years or more
Gratuity: 1-month basic salary for each year of service
Work and Residence Permits (Expatriates)
EWS can support expatriate employment in Oman. We need basic employee information and a few forms to be filled. The templates can be shared upon request.
Typically, the following documents are required:
– Passport copy
– Photo in blue background
– Diploma / School credentials with Oman embassy and MOFA stamp
In all cases, the work and residency permit is valid for two years when issued for the first time and may be renewed for a similar term there onwards. Once the worker receives his/her work and residence permit and Oman ID, they can sponsor their immediate family members to live in Oman, open local bank account and obtain a driving license.