As of July 2022, the estimated population of Oman is 4.5 million.
The currency in Austria is the Omani rial (OMR). The currency symbol is ﷼
While Oman's Labor Code does not explicitly define permanent employment, it does define indefinite-term contracts as those that: Are concluded without specifying their duration Are concluded for a period exceeding 5 years If the original and renewed contract period exceeds 5 years If the contract is not written or is a written contract with a fixed term, and its term has expired, and the 2 parties continue to implement it without a written agreement between them If the employment contract is concluded to complete a specific job, and this takes a period exceeding 5 years If the employment contract concluded to complete a specific work is renewed, and the period of completion of the original work and the work for which the contract was renewed exceeds 5 years If the employment contractis concluded to complete a specific work, and its 2 parties continue to implement it after the completion of this work without an explicit agreement to renew it Indefinite term contracts can be terminated at any time by either party by giving a notice at least 30 days in advance for employees on a monthly wage and 15 days for all others.
Oman's Labor Code requires employment contracts to be concluded in writing, written in the Arabic language, and drawn up in 2 copies. If the contract is drafted in a language other than Arabic, at least 1 copy in Arabic must be annexed to the agreement and approved by the 2 parties to the contract. If the contract is not made in writing, it is considered to be made for indefinite term. The contract must include the following information: Name of the employer or establishment and address of the workplace Name, date of birth, qualifications, designation, address, and nationality of the employee, as well as the nature of their job Nature and type of work and duration of the contract, if applicable Basic salary and allowances and other remuneration to which the employee is entitled The notice period for termination of employment Probationary period, if any Commitment to respect religions and religious beliefs, the laws of the Sultanate of Oman, its customs and traditions, and not to engage in activities that harm the security of the country. If any of the parties to the contract cannot read or write or does not understand the contract's language, it must be authenticated by the competent authority according to the law. Employers can include a non-compete clause in an employment contract if the employee's work involves access to knowledge of work secrets or knowledge of the employer's clients. Such a clause must specify the location, type of work, and period of restriction, provided the place does not lie beyond the geographical area in which the employer carries out their activity, and the specified period does not exceed 2 years. The employer may not adhere to the agreement if they terminate the contract unjustly. Employers also have the right to demand compensation from the employee if they violate the clause.
Under the most recent Omani Labour Law, temporary and casual work are expressly recognised but only lightly regulated in the primary legislation. Casual work is defined as work that does not fall within the employer’s usual activity and does not exceed 6 months. Temporary work is defined as work that, by its nature, must be completed within a fixed period. Beyond these definitions, as of the year 2025, the law does not set out detailed rules governing the rights, duration, or contractual treatment of temporary or casual workers.
Per Oman's Labor Code, an employee cannot be placed on probation for a period exceeding 3 months if they receive their monthly wages. The probationary period cannot exceed 2 months if the employee receives their wage in any other manner. An employee cannot be placed on probation more than once with the same employer. Also, any probationary period must be included in the service period if the employee has completed it. In all cases, any probationary period must be specified in the employment contract. After a notice of not less than 7 days to the other party, any one of the parties may terminate the contract during the probationary period if it becomes clear that continuation of employment is not suitable.
Oman's labor law stipulates that the standard workweek is 40 hours weekly or 8 hours daily, not including an hour per day for rest and eating. The period of continuous work must not be more than 6 hours. The maximum working hours for Muslim employees during Ramadan are 30 hours per week and 6 hours per day. Working hours for minors cannot exceed 6 hours per day. Part-time work must be at least 4 hours per day and must not exceed 25 hours per week. Employees working more than the standard working hours are eligible for overtime. The total working hours in a day, including overtime, cannot exceed 12 hours.
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Oman's Labor Code entitles all employees to a paid annual leave of 30 days. Employees can only take annual leave once they have worked for their employer for at least 6 months. Employers can grant special unpaid leave at the employee’s request, during which the employee must pay all Social Protection Fund contributions; the leave counts toward the employee’s service period but is excluded from the calculation of end-of-service gratuity. Except for minors' leaves, it is permissible to divide an employee's annual leave according to work requirements. Employees who do not utilize their annual leave can accumulate up to 30 days of leave. They must go on leave for at least 30 days once every 2 years. If the employee agrees to receive compensation in lieu of their annual leave, the employer must pay employees their regular daily wage for any days of annual leave that the employee has not taken, and such an agreement must be in writing. Employees are entitled to receive their regular daily wage for the balance of their annual leave if they leave their employer before exhausting such leave.
Oman's Labor Code entitles employees whose illness is certified to 182 days of annual sick leave. The leave is granted as follows: First 21 days of leave with full pay 21st to 35th day of leave with 75% of gross pay 36th to 70th day with 50% of gross pay 71st to 182nd day with 35% of gross pay. Effective July 19, 2026, employers are liable to pay 1% of an employee's wages to the Sick Leave and Extraordinary Leave Insurance Branch of the Social Protection Fund to cover sick leave benefits. The employer must cover the wages for the first 7 days, and the remaining sick leave will be covered by the Sick Leave and Extraordinary Leave Insurance Branch. A medical certificate must prove the employee's illness. In the event of a dispute, the matter will be referred to the Medical Commission.
Oman's labor law grants 98 days of maternity leave to female employees, during which the employee receives their full salary. This includes 14 days of prenatal leave and 84 days of postnatal leave. There is an option to extend the leave by another 98 days within a year of childbirth as unpaid leave. Employees also get 98 days leave in case of adoption, provided the child is under the age of 3 months. Maternity leave benefits are paid from the maternity leave insurance branch of the Social Protection Fund. Employers are obligated to pay the monthly contributions of the maternity leave insurance branch at the rate of 1% of the wage per month. The amount of benefit paid during the leave is equal to 100% of the employee’s wage. To be eligible for maternity allowance, the pregnancy must have progressed more than 25 weeks. If the child dies after the 25th week, the insured employee is still eligible for full maternity leave with pay.
Oman's labor law introduced a paid paternity leave for 7 days for fathers. This leave must be taken within 98 days of the child's birth. In case of mother's death during childbirth, the remaining maternity leave is transferred to the father. Paternity leave benefits are paid from the maternity leave insurance branch of the Social Protection Fund. Employers are obligated to pay the monthly contributions of the maternity leave insurance branch at the rate of 1% of the wage per month. The amount of benefit paid during the leave is equal to 100% of the employee’s wage.
Per Oman's Labor Code, if an employment contract is for an indefinite duration, either of the parties may terminate it after giving written notice of at least 30 days to the other party. If the contract is terminated without notice, the party who terminates the contract must pay the other party compensation equal to the gross wage for the notice period or the remaining part thereof. A notice of termination issued by the employer to a worker on leave or public holiday will not begin until the day following the end of the leave or holiday. Employers must grant the employees a notice period, 10 hours paid off time per week to search for a new job. During probation, contracts can be terminated by giving a notice of 7 days. A fixed-term contract ends automatically upon expiry without notice, unless the contract stipulates a notice obligation.
Per Oman's Labor Code, employees who are not beneficiaries of social insurance end of service benefits are entitled to an end of service gratuity depending on their employment length. The amount of severance pay is equal to a month's wages for each year of service. The last basic wage of the employee is used for calculation. This end of service gratuity does not apply if the employee is entitled to benefits under the Social Protection Law.
Oman's new social security system includes both contributory and non-contributory benefits. The legal age is 60. This age is set to increase to 65 for both, increasing by 1 year every 7 years. To be eligible for benefits, the insured must have a registered service period of at least 20 years (including the previous social security system). Early retirement can be requested for men who reach the age of 55 and women who reach the age of 50, provided they have completed 20 years of service. There are provisions for early retirement at reduced benefit rates. The pension amount depends on the number of years of service and the average wage. Effective August 27, 2025, eligible employees with severe disability who have completed 15 years of service may retire at 50 without a pension deduction, and at 45 with applicable pension deductions. Employees are eligible if they hold a severe disability certification that is issued by the Ministry of Social Development. The system also has a non-contributory universal benefit for elderly Omanis or residents of Oman at the rate of OMR 115 (Omani rials) per month. This benefit can be combined with all pensions and benefits, except disability benefits and widows' benefits. Starting July 2027, Oman will implement a mandatory savings scheme for non-Omani employees, requiring employers to deposit 9% of an expat’s basic salary into the Social Protection Fund. The accumulated funds, along with investment returns, will be paid out to the expatriate employee upon the termination of their service in Oman.
Oman's Social Protection Fund covers pensions for beneficiaries after the death of an insured person before retirement, provided the deceased had paid at least 6 consecutive monthly contributions immediately preceding their death or 12 nonconsecutive monthly contributions, including 3 months immediately before death. Eligible beneficiaries include children and spouses. The pension amount is 0.5% for each year of service in addition to 50% of the relative average wage of the deceased employee. The death pension is paid at the rate of 100% for an initial period of 6 months from the date of death of the insured, and it is redistributed according to the following percentages after that: 3 or more dependents - 100% 2 dependents - 80% 1 dependent - 60% In case of death due to occupational accidents or diseases, the survivors are entitled to a monthly pension equal to 75% of the relative average wage, provided that it shall not be less than an adult pension. There is also a non-contributory universal benefits scheme for widows and orphans, paid at a maximum of OMR 80 (Omani rials) per month.
Oman's Social Protection Fund provides disability pensions to qualified beneficiaries. Insured persons under the age of retirement are eligible to receive a disability pension if they are assessed with a disability, are unable to work, and fulfill the conditions for contributions. The amount of disability pension due to a non-occupational disability is 50% of the average wage of the employee, plus 0.5% for each year of service. In case of disability due to occupational accidents or diseases, the employees are entitled to benefits, depending on the type and degree of disability. They are also entitled to receive treatment, medical care and rehabilitation services in government hospitals and medical centers. There is a universal non-contributory benefit paid to all Oman residents who have a permanent disability. The amount of benefit is OMR 130 (Omani rials) per month.
Oman has enacted a Personal Income Tax Law under Royal Decree No. 56/2025, marking a significant shift in its tax system. Although there is currently no personal income tax in force, the new law will take effect on January 1, 2028. It introduces a 5% tax on annual taxable income exceeding OMR 42,000 (Omani rials). The tax year will run from January 1st through December 31st. A tax resident is any individual who is present in Oman for more than 183 consecutive days. Tax residents are taxed on their worldwide income. Tax returns must be filed within 6 months of the end of the tax year. For individuals who earn only a salary or a pension, they may request their employer to file their return on their behalf. The employee must also file a declaration that they have no other sources of income.
Visa Categories
The following categories of visas are available in Oman:
Foreign nationals who wish to work in Oman must obtain a work permit and a work visa. The visa is granted under a license from the Ministry of Labour. Work visas are valid for 2 years and can be used for multiple entries once residence is granted. Employers are required to obtain a written approval (Labor Authorization) issued by the Ministry to the employer to recruit non-Omani manpower to work in a specific occupation. Labor Authorization is issued for is 24 months, and is non-renewable. The authorizarion is granted if the employer has complied with the prescribed percentages of Omanization. Employers may not hire non-Omani people in jobs that are considered 'Omanized.' Foreign workers in the accounting and finance sectors require a Professional Classification Certificate, while those in the logistics or energy and minerals sectors require a Professional Practice License. Failure to obtain the required accreditation will prevent the issuance or renewal of work permits and visas. The following requirements must be met to be eligible for a work visa: The visa must be issued at the request of the employer. The employee must be over 21 years of age and under 60 years of age. The employee's occupation must be the same as that mentioned in the work permit. The following documents must be submitted to obtain a work visa: 2 photographs Copy of passport, valid for at least 6 months Copy of labor permit Copy of medical certificate Copy of approval from the Ministry of Manpower for conducting the job in Oman. Work permits allow employees to work in a specific occupation. The validity of a work permit is 24 months, renewable. It is permitted to amend the occupation specified in the Labor Authorization and the work permit from a lower category to a higher category, provided that the approval of the ministry is obtained and the fee difference between the two categories is paid.
