Hiring in Oman means navigating a detailed framework of statutory leave entitlements, mandatory insurance, and social protection contributions that apply differently to Omani nationals and expatriate workers. Understanding exactly what you owe your workforce, and how recent reforms like the Social Protection Fund (SPF) change those obligations, is essential for compliant, competitive hiring. This guide walks you through every benefit and leave category so you can build a compliant employment package from day one.
Annual leave
Employees in Oman are entitled to 30 calendar days of paid annual leave once they’ve completed six months of continuous service. Leave accrues on a pro-rata basis during the first six months, and entitlements restart each year thereafter.
Carry-forward and payout rules
Employees can carry forward up to 30 unused leave days into the following year. If employment ends before an employee has taken all accrued leave, you must pay out the unused balance as part of the final settlement. There’s no discretion here: it’s a statutory obligation under the Labour Law.
Public holidays
Oman observes 9 public holiday occasions, which typically translate to 13 to 14 calendar days per year. The government announces the exact dates annually, and Islamic holidays shift each year because they follow the lunar calendar.
| Holiday | Date |
|---|---|
| Accession Day | 11 January |
| Renaissance Day | 23 July |
| National Day | 20–21 November (2 days) |
| Islamic New Year (1 Muharram) | Date varies each year |
| Prophet’s Birthday (12 Rabi’ al-Awwal) | Date varies each year |
| Prophet’s Ascension (27 Rajab) | Date varies each year |
| Eid al-Fitr (1–3 Shawwal) | Date varies each year (3 days) |
| Eid al-Adha (10–13 Dhu al-Hijjah) | Date varies each year (4 days) |
Because Eid al-Fitr and Eid al-Adha each span multiple days, the total calendar days of public holidays can fluctuate between 13 and 14 depending on the year. Plan your workforce scheduling around the government’s annual announcement.
Sick leave
Oman’s sick leave entitlement covers up to 182 days per year on a sliding pay scale. The structure reduces the employer’s cost burden as absences extend, while still providing employees with meaningful income protection across the full period.
Sick leave pay scale
| Period | Pay rate |
|---|---|
| Days 1–21 | 100% of gross wage |
| Days 22–35 | 75% of gross wage |
| Days 36–70 | 50% of gross wage |
| Days 71–182 | 35% of gross wage |
Spf sick leave coverage for expats
From July 2024, the SPF covers sick leave costs for non-Omani employees beyond the first seven days. As the employer, you pay the first seven days at the full gross rate yourself. From day eight onwards, the SPF funds the entitlement through its 1% sick leave and maternity insurance contribution. This scheme fully matures two years after implementation, so it’s worth tracking how it applies to your workforce as the rules bed in.
Maternity leave
Female employees are entitled to 98 days of paid maternity leave. Up to 14 days of that can be taken before the expected delivery date, provided the employee submits a medical certificate. The SPF’s maternity and paternity insurance scheme, funded by a 1% employer contribution, covers both Omani and non-Omani mothers.
Employer obligations during maternity leave
You’re responsible for continuing employment protections throughout the 98-day period. On return, the employee is entitled to one hour of paid nursing time per day for the 12 months following their return to work. This nursing break doesn’t reduce the employee’s regular wage and can’t be offset against annual leave.
Unpaid childcare leave
Employees may take up to one year of unpaid childcare leave after their paid maternity leave ends. The position remains job-protected during this period. However, the employee is responsible for covering all SPF contributions that would normally fall on both parties during the unpaid leave.
Paternity leave
Fathers are entitled to 7 days of paid paternity leave, which must be taken within 98 days of the child’s birth. The child must be born alive for the entitlement to apply. This right covers both Omani and expatriate fathers under the SPF scheme, so you’ll need to administer it consistently across your entire workforce regardless of nationality.
Special paid leave
Oman’s Labour Law grants employees additional paid leave for specific personal events. These entitlements are statutory and can’t be absorbed into annual leave balances.
| Event | Entitlement |
|---|---|
| Own marriage | 3 days (once during service) |
| Death of father, mother, grandparents, or siblings | 3 days |
| Death of uncle or aunt | 2 days |
| Death of wife, son, or daughter | 10 days |
| Death of husband (non-Muslim female employee) | 14 days |
| Death of husband (Muslim female employee) | 130 days |
| Hajj pilgrimage (Muslim employees, after 1 year of service) | 15 days (once during service) |
| Exam leave for Omani employees (school, college, or university) | Up to 15 days/year |
| Patient accompaniment leave for Omani employees (spouse or up to second-degree kin) | Up to 15 days/year (100%); up to 30 days/year under SPF (days 16–30 at 50%) |
The patient accompaniment leave is worth particular attention: under the SPF, Omani employees can extend this leave to 30 days, with the first 15 days paid at 100% and days 16 to 30 paid at 50%. You should confirm whether the SPF contribution arrangement applies to each individual case before approving extended leave.
Mandatory health insurance (dhamani)
All employees holding a work permit in Oman must be covered under the Unified Health Insurance Policy, known as Dhamani. This isn’t optional: coverage is a condition of the work permit system, and you’re responsible for enrolling employees and paying the full premium.
Coverage levels
| Coverage category | Annual limit |
|---|---|
| Inpatient | OMR 3,000 |
| Outpatient | OMR 500 |
| Repatriation of mortal remains | OMR 1,000 |
| Total annual cap | OMR 4,500 |
The policy covers inpatient and outpatient care, emergency treatment, physician fees, diagnostics, and medications. You must also cover eligible dependants (a spouse and children under 21) under the same policy. Enrolment and administration happen through the e-Dhamani digital platform, which you’ll need to familiarise your HR team with.
Note that the government health insurance scheme, which is built into the visa cost, covers treatment at government hospitals separately. Dhamani is the private insurance layer that sits on top of this.
Social insurance and pension contributions
Your contribution obligations differ depending on whether an employee is an Omani national or an expatriate.
Omani nationals: pasi pension
Omani employees must be registered with the Public Authority for Social Insurance (PASI). The employer contributes 11% of gross salary, and the employee contributes 7.5%. These contributions fund the employee’s pension and long-term social security benefits.
Expatriate employees: spf contributions
Expatriate employees don’t participate in PASI. Instead, they fall under the Social Protection Fund (SPF), which currently requires a 1% employer contribution covering sick leave and maternity/paternity insurance. This rate and scope are set to expand significantly from 2027.
The 2027 savings scheme
From 2027, a new mandatory savings scheme will replace the current end-of-service gratuity for expatriate employees. Employers will be required to contribute 9% of each expatriate employee’s gross salary into an individual savings account. This is a material change to compensation costs for any business with a predominantly expat workforce, and it’s worth modelling the impact on your payroll now.
Repatriation air ticket
Non-Omani employees are entitled to one return air ticket to their home country when they take annual leave and plan to return to work. As the employer, you’re responsible for providing or funding this ticket. It’s a frequently overlooked statutory benefit, particularly for smaller employers, so make sure it’s accounted for in your employment contracts and HR policies.
Supplementary benefits in competitive oman packages
Beyond the statutory floor, most competitive employers in Oman offer housing, transport, and education allowances to attract and retain talent, particularly for managerial and professional roles. These are especially standard in expat packages, where housing costs are significant. From January 2026, Omani nationals are also entitled to a mandatory annual performance-based salary increment of between 2% and 5%, so you’ll need to factor incremental salary growth into your compensation planning from the outset.
How an EOR manages benefits compliance in oman
Managing Oman’s benefits landscape means tracking statutory leave types, SPF contribution rates, Dhamani enrolment cycles, and upcoming regulatory changes like the 2027 savings scheme, all simultaneously, for a workforce that may be split between nationals and expats with different entitlement structures. An Employer of Record (EOR) takes on full legal responsibility as the employer of record in Oman, handling PASI and SPF registrations, Dhamani enrolment, payroll contributions, and leave administration on your behalf.
Using an EOR also means you’re automatically covered as Oman’s social protection landscape evolves. When the 2027 savings scheme replaces gratuity, your EOR adjusts payroll structures and contribution rates without you needing to engage local counsel or renegotiate contracts. For companies scaling quickly or managing a mixed-nationality workforce, EOR services reduce compliance risk and administrative overhead significantly.
If you work with independent workers, it’s worth noting that contractors in Oman sit outside the Labour Law framework, so the entitlements in this guide don’t apply to them. Misclassifying an employee as a contractor is a serious compliance risk, and the distinction matters even more given Oman’s mandatory insurance and social contribution requirements.
Get started with RemotePass
If you’re hiring in Oman and want to stay fully compliant without building a local entity, RemotePass can help. From Dhamani enrolment and SPF contributions to annual leave tracking and the 2027 gratuity transition, RemotePass handles the detail so you can focus on growing your team. Book a demo at https://remotepass.com/demo to see how it works.
