Oman Employment, Benefit and Payroll Guide

Oman Employment, Benefit and Payroll Guide

Kuwait offers a favorable business environment, with a robust economy, a high standard of living, and a strategic location in the Gulf region. Expanding your business in Kuwait can provide you with access to a range of opportunities in various sectors, from oil and gas and construction to finance and healthcare. The government of Kuwait has implemented a range of economic reforms to attract foreign investment and promote economic growth, including the introduction of new business regulations, investment in infrastructure, and support for small and medium-sized enterprises. Kuwait is also home to a highly skilled and diverse workforce, with a strong focus on education and training. With its strategic location, diversified business environment, and skilled workforce, Kuwait is an ideal destination for businesses looking to expand in the GCC region.
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Key Facts

Capital City: Kuwait City
Currency:  Kuwaiti Dinar (KWD)
National holiday: National Day, February 25th
Language: Arabic (official), English
Population: 4.3 million (2021 estimate)
Payroll Cycle: Monthly
VAT: 0%
Time zone: AST (Arabian Standard Time), UTC+3
International dialing code: +965
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Oman Payroll and Labor Laws

Kuwait has a stable and open business environment, with a favorable tax regime and streamlined business regulations. The country offers a range of investment incentives, including tax exemptions, subsidies, and loans, to attract foreign investment and promote economic growth. Kuwait also has a well-developed financial sector, with a range of banking and investment services available to businesses and individuals.

Overall, having a good understanding of Kuwait's business and labor laws is crucial for companies looking to establish or expand their operations in the country. By complying with these laws and regulations, companies can ensure that they are providing their employees with fair and equitable treatment, while also avoiding any potential legal issues or penalties. With its favorable business environment, skilled workforce, and supportive government policies, Kuwait is an attractive destination for businesses looking to expand in the GCC region.


Social Security 10.5%
Occupational Injury and Disease 1.00%
Job Security Fund 1.00%

Total Employment Cost 12.50%
Social Security 7.00%
Job Security Fund 1.00%

Total Employee Cost 8.00%

Minimum Wage

In Oman, the minimum wage is 325 OMR per month, of which 225 OMR must be salary, and the remaining 100 OMR must be paid as a bonus.


Payroll Cycle
In Oman, the payroll frequency is typically monthly. The employer must make salary payments at least once a month.
13th Salary
There is no legal requirement for employers to pay a 13th-month payment.

Working Hours

In Oman, the standard work week consists of 45 hours per week, nine hours a day. However, work hours are reduced to 30 hours a week, 6 hours a day during Ramadan.
All work above the standard weekly hours is paid as overtime and regulated by employment contracts/collective agreements. When an employee is requested to work overtime or on holidays, the maximum is set at 12 hours a day.

All overtime hours in excess of 45 hours a week are paid at an overtime compensation rate of 125% of the employees’ regular wage for daylight hours and150% for hours worked at night.
Working on a Friday earns 1.5x regular salary and a compensatory day off.

Working on a national holiday earns 2x regular salary.


Paid Time Off
Employees have the right to an annual leave of 30 days, paid at 100% of their regular salary. Employees earn the entitlement following six months of consecutive employment at one organisation.
Public Holidays
Oman has 10 public holidays.
Sick Days
An employee is entitled to 10 days of sick leave compensated by the employer at 100% of their regular income. Any sickness in excess of two weeks is paid by Social Security at a reduced rate as follows:

Week     3-4 of sickness – 75% of their wages
Week     5-6 of sickness – 50% of their wages
Week     7-10 of sickness– 25% of their wages

Maternity Leave
Per Article 83, Part 5 of the Labor Law of Oman, women working in the private sector are entitled to 50 days of maternity leave covering periods before and after delivery, with compensation at 100% of their regular income. An employee is entitled to maternity leave three times throughout her employment in one organisation. Civil Service Law No. 120/2004 allows female employees working in the public sector to take maternity leave up to five times throughout their service.
Paternity Leave
In Oman, there are no provisions in the law regarding paternity leave.
Parental Leave
There are no provisions in the law regarding parental leave.
Other Leave
Bereavement leave: for the death of a father, mother, spouse, sibling, grandparent, or child, an employee is entitled to three days of leave. For the death of an aunt or uncle, two days’ leave is granted. In the event of a working  Muslim woman losing her husband, the leave entitlement is increased to 130     days.

Wedding leave:
an employee is entitled to 3 days.Hajj Pilgrimage: an employees gets 15 days of leave to perform the Hajj Pilgrimage once during their employment, following one year of service.

Exam leave:
granted to employees in Oman for the opportunity to study in one of     the schools, institutes, colleges, or universities. The leave entitlement     for study leave is 15 days.


Termination Process
The termination process varies according to the Employment Agreement and the Collective Agreement in place and on the type of contract and reason for termination. Employers must have sufficient ground for terminating an employee and must provide a formal notice period and end-of-service gratuity.
Notice Period
The notice period in Oman is 30 days for both employees resigning and employers dismissing an employee. All notices must be provided in writing.
Severance Pay
In Oman, employers must pay severance pay based on the employee’s years of service:

15 calendar days’ basic pay for each year of service for the first three years.

30 calendar days’ basic pay for each year of service above three years.

Probation Period
In Oman, probation periods are outlined in the employees’ employment contract collective agreement. The probation period must not exceed three months.


Foreigners are usually requested to obtain entry visas to travel to Oman. Visas for Oman are broadly categorised as a tourist visa, employment visa, relative/friend visit visa, family joining/resident visa, investor resident and student resident visa, transit visa.

They can be issued as single-entry, double-entry, or multiple-entry visas for visits up to 90 days in periods of 180 days. The single-entry visa grants one-time entrance, whereas double-entry visa holders may travel twice in predetermined timeframes. A multiple-entry visa allows for consecutive visits to the country.

Value Added Tax (VAT)


Employ Your Staff Compliantly in the GCC with Auxilium's Expert Guidance

Are you planning to expand your business in the GCC region and looking to employ staff compliantly?

Look no further than Auxilium! Our team of experts can provide you with guidance on the complex payroll and labor laws in the GCC countries, ensuring that you are fully compliant with local regulations.

We can help you with everything from setting up payroll and social security contributions to navigating the various labor laws and regulations in the GCC countries.

With our expert guidance, you can focus on growing your business while we take care of the compliance. Contact us today to learn more about how we can help you employ your staff compliantly in the GCC region and ensure peace of mind.
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