Hiring in Oman

The terms set out role, salary in OMR, working time, leave, notice and any restrictive covenants. The EOR is the counterparty to the employee, which is what removes the need for your own entity.

Arabic is the legal contract language, so bilingual Arabic and English contracts are standard. The contract must also be approved by the Ministry of Labour.

Fixed-term contracts can run up to 5 years including renewals. Beyond that, the contract is treated as indefinite.

Set probation from day one. Probation can only be used once with the same employer, and it cannot run past the statutory cap.

Some EORs shorten probation as policy because they, not you, carry the dismissal risk. Ask before you agree a start date.

Agreed overtime is paid at the basic hourly rate plus at least 25% by day and 50% at night, with a cap of 12 working hours a day.

Muslim employees work no more than 6 hours a day during Ramadan, so plan delivery around it. Put the overtime position in writing either way.

Up to 30 unused days can roll over and any balance is paid out at gross wage on exit, so track leave from day one. Expatriate employees are also entitled to a return ticket home for annual leave as agreed in the contract.

Maternity leave is 98 days and paternity leave 7 days, both on gross wage. Paid sick leave runs up to 182 days a year on a sliding scale, and since July 2026 the Social Protection Fund reimburses it for insured Omani employees from day 8, so confirm which side the EOR carries.

Either side may terminate on notice or pay in lieu. Poor performance needs a written warning and at least 6 months to improve, and redundancy needs prior approval from a Ministry of Labour committee.

The EOR runs the process as the legal employer and will want the paperwork in order, including final pay, unused leave and the end-of-service gratuity for expatriates. Arbitrary dismissal claims exist, with compensation capped at 12 months' gross wage, so keep a documented reason.

The gratuity is at least one month's basic wage per year of service. A 9% employer-funded savings scheme replaces it no later than 19 July 2027, and gratuity earned before the switch is still owed.

Private medical cover is standard for professional roles, and housing and transport allowances are common in expatriate packages. EORs often bundle benefits through a group scheme. Ask what is included in the fee and what is billed on top.

Employer contributions add 14.5% on top of the monthly wage for Omani nationals, with the pension and work injury branches capped at a wage of OMR 3,000 a month. That is before the EOR fee.

The 2028 income tax is the trap. Senior hires on multi-year packages may cross the threshold, and the collection rules are still being set, so ask how the EOR will handle filing.

Ask whether the EOR sponsors directly or refers to a partner. A partner-model EOR often cannot sponsor at all, and Omanisation ratios and the list of jobs reserved for Omanis apply to the sponsor, not to you.

Set start dates after approval, not before.

Get the data processing terms in the service agreement, not just the privacy notice. Cross-border transfers are tightly controlled and carry the heaviest fines under the law.

Ask where payroll data is hosted and who in the partner chain can see it.

Most activities now allow 100% foreign ownership with no statutory minimum capital, but the running cost is the point: commercial registration renewals, Chamber of Commerce membership, audit, PRO services and your own Omanisation obligations set an annual floor.

Permanent establishment risk is about what people do, not where payroll sits. Revenue-generating activity can create exposure regardless of the employment route.