Payroll in Oman runs in OMR (Omani rial). Monthly payroll is standard. No statutory 13th-month bonus is mandated; end-of-service gratuity applies instead for expatriate employees not covered by the pension scheme. Statutory employer contributions apply. Gracemark operates it end-to-end, humans, not tickets.
Standard working hours are 45 hours per week (9 hours/day), reduced during Ramadan for Muslim employees, with overtime paid at premium rates under the Labour Law.
Minimum wage
Oman sets a minimum wage applicable to Omani nationals in the private sector; foreign worker pay is governed by contract rather than a uniform statutory floor.
13th-month
No statutory 13th-month bonus is mandated; end-of-service gratuity applies instead for expatriate employees not covered by the pension scheme.
Employer cost
Under the new Social Protection Law (Royal Decree 52/2023), the total PASI-related contribution rate is around 17.5% of eligible wages, split between employer and employee shares, covering pensions, work injury and unemployment insurance.
Probation
Probation periods are capped at 3 months, extendable once by agreement up to 6 months total.
Notice period
Notice periods are generally 30 days (or as agreed, up to statutory minimums), and end-of-service gratuity is payable to eligible expatriate employees based on length of service.
Two ways to run payroll in Oman
Own-entity payroll
For long-term presence in Oman. Gracemark manages statutory filings, pay runs, and year-end reporting under your entity, with a named operator on Western Asia time.
EOR-run payroll
No entity in Oman? Employ and pay talent under Gracemark's local infrastructure via EOR, onboard in typically 1–3 weeks via eor, no local incorporation.
Compliance essentials in Oman
Employment model: EOR vs. contractor vs. local entity for Oman
Mandatory benefits, social contributions and any 13th-month obligation
Termination rules, statutory notice and severance exposure
Contractor misclassification risk and how local law defines employment
Currency (OMR), payroll cycle and Arabic-language contract requirements
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