Oman

Employment taxes

Good news for employees, Oman has no personal income tax. That means:

• You keep your full salary.
• No payroll deductions for income tax.
• No social security contributions for expat employees.
• Employers pay social security only for Omani nationals.

Leave policy

Annual leave: Minimum 30 days of paid vacation per year after completing 6 months of employment.

Public holidays: Oman celebrates 6 national holidays.

Sick leave: Up to 10 weeks of sick leave, paid by the employer on a sliding scale:

• First 2 weeks: 100% pay
• Next 2 weeks: 75%
• Next 2 weeks: 50%
• Last 4 weeks: 25%

Maternity leave: 14 weeks of fully paid leave for employees who have worked for one year. The employer is responsible for this pay.

Paternity leave: 7 days of fully paid paternity leave, covered by the employer.

Parental leave: Currently no statutory parental leave.

Employment termination

• Employers must provide a valid reason for dismissal, such as misconduct, low performance, by expiration of the contract, by mutual agreement, etc.
• Standard notice period is 30 days.
• Severance depends on years of service. For the first 3 years, you're entitled to 15 days of basic salary per year, and after 3 years, you get 30 days of basic salary per year.

Hiring and contracts

• Contracts must be written, in English or bilingual and signed by both parties.
• Must include: Job title, salary and allowances, working hours, contract duration, leave entitlements.
• Types of contracts: Omani labor law recognizes two main types of employment contracts, fixed-term and indefinite.
• Probation period: Most common probation period is between 3 and 6 months.

Payroll and salary payments

• Salaries are paid monthly, in Omani Riyals (OMR).
• Payments must be processed through the Wage Protection System (WPS).
• Minimum wage: National minimum wage applies only to Omani nationals and is 225 OMR base salary + 100 OMR allowance (total 325 OMR).

Benefits

Mandatory

• Severance
• Annual leave
• Sick leave
• Maternity and paternity leave

Optional

• Housing allowance
• Transportation allowance
• Annual flight ticket home
• Bonus schemes
• Private health insurance upgrades

Monthly living cost (Muscat Edition)

• Rent (1-bedroom apartment): 250–400 OMR (563–900 EUR / 650–1,040 USD)
• Utilities: 20–35 OMR (45–79 EUR / 52–91 USD)
• Internet: 25–35 OMR (56–79 EUR / 65–91 USD)
• Groceries: 80–120 OMR (180–270 EUR / 208–312 USD)
• Eating out (local meals): 1.5-3 OMR (3.40-6.80 EUR / 3.90-7.80 USD)
• Restaurant dinner: 8–12 OMR (18–27 EUR / 21–31 USD)
• Transportation: Fuel is cheap; taxi rides cost 1-4 OMR (2.25-9 EUR / 2.60-10.40 USD)
• Gym membership: 15–40 OMR (34–90 EUR / 39–104 USD)

How to get a local ID number

To live and work in Oman, you need the Resident Card, which serves as your local ID.

How it works:

1. Your employer obtains your work visa.
2. After arrival, you undergo a medical test.
3. You visit the Royal Oman Police to receive your Resident Card.

Remote workers without a local employer cannot get a resident ID unless they have a sponsored visa or an investor permit.

Social security registration

• Social security applies only to Omani nationals.
• Employers register Omani employees with the Public Authority for Social Insurance (PASI).
• Expat employees are not required or eligible for social security contributions.

Banking

Oman has a reliable banking system, and opening an account is straightforward with your Resident Card. Popular banks include:

• Bank Muscat
• National Bank of Oman (NBO)
• Bank Dhofar
• HSBC Oman
• Oman Arab Bank

To open a bank account, you’ll need a resident card, passport, employment contract, and local address.

Housing and rental process

• Most expats rent apartments or villas, and the market is flexible.
• 6 or 12-month contracts are standard.
• Rent is usually paid monthly, sometimes quarterly.
• Deposits range from 5-10% of annual rent.

Tenant rights:

• Landlords must keep the property in good condition.
• Rent increases are regulated and cannot be unreasonable.
• Tenants can file complaints with municipal authorities if needed.

Healthcare system

Oman’s healthcare system is modern, safe, and accessible.

• Employers must provide private health insurance.
• Public hospitals are available but mostly used by Omani citizens.
• Private clinics are common and reasonably priced.

Driving and public transport

• Most expats rent or buy a car, and it’s the easiest way to get around.
• Roads are well-maintained, and fuel is affordable.
• Your foreign license can be used initially, then swapped for an Omani license depending on country eligibility.
• Public transport: Bus networks exist but are limited. Taxis and ride-hailing options like Mwasalat are widely available.

Emergency and important contacts

Emergency (police, fire, ambulance): 9999

Work permit and visa requirements

All foreign nationals need a work visa to work legally in Oman. The process is the same for everyone:

1. You receive a job offer.
2. Employer applies for a work visa on your behalf.
3. You enter Oman with the visa.
4. You complete medical checks.
5. You receive your Resident Card.

You must always work for the employer sponsoring your visa. Changing jobs requires a no-objection letter and a new visa process.

Business culture and work norms

Omani workplaces are known for being calm, respectful, and relationship-focused. You can expect:

• Friendly communication
• A slower, more thoughtful pace
• Value placed on trust and personal connection
• Polite, non-confrontational work style
• Weekends on Friday & Saturday

It’s a great environment if you appreciate balance and low-stress workdays.