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Payroll in Oman
Payroll in Oman runs in OMR on a monthly payroll is standard. cycle, with statutory employer contributions and no statutory 13th-month bonus is mandated; end-of-service gratuity applies instead for expatriate employees not covered by the pension scheme.. Gracemark operates it end-to-end, humans, not tickets.
Currency
OMR, Omani rial
Payroll cycle
Monthly payroll is standard.
Working week
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 [4](https://www.zimyo.me/guides/employment-guide-for-oman/).
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
Get a payroll quote for Oman
Send your headcount and salary band. We reply with employer burden, net-to-gross, and setup timeline, no sales scripts.
Deeper guide
Hiring guide: Oman →
Employ without entity
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