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๐Ÿ‡ด๐Ÿ‡ฒ Oman: payroll law changes

2 tracked changes · MENAT · sources last checked 1 October 2026

Statutory and legislative payroll changes in Oman, each linked to the page it was checked against. For information only, not legal or tax advice: confirm details with the source before acting. See the terms.

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Mandatory performance-based annual increments for Omani private-sector workers

Ministerial Resolution 317/2025

Oman's Ministerial Resolution 317/2025 sets a minimum periodic increment for Omani workers in the private sector, paid annually on 1 January based on performance: 5% of basic salary for excellent, 4% very good, 3% good, 2% acceptable, and no increment for poor. Workers must have been appointed for at least six months in the establishment.

For the employer

  • Award the minimum increment (2-5% of basic salary by rating) to eligible Omani workers each 1 January.
  • Complete performance evaluations before the increment date.
  • An administrative fine of RO 50 applies per violation, multiplied by the number of workers involved.

For the employee

  • Omani workers with at least six months' service receive an annual increment of 2-5% of basic salary depending on performance rating.

In practice: On a basic salary of RO 800 with a very good rating: increment RO 32 (4%).

Applies to Omani workers in the private sector.

Source: Oman Observer - Minimum periodic increment for Omani workers in private sector · Last verified 1 October 2026

Sick leave and unusual leave insurance starts; expat work-injury cover deferred to 2028

Effective 19 Jul 2026

Sultani Decree No. 60/2025, issued 13 July 2025, amends the Social Protection Law: the sick leave and unusual leaves insurance scheme takes effect on 19 July 2026 (postponed by one year), while work injuries insurance for non-Omani workers is delayed from 19 July 2026 to 19 July 2028.

For the employer

  • Prepare for the sick leave and unusual leaves insurance scheme from 19 July 2026.
  • Do not begin work injury insurance contributions for non-Omani workers before 19 July 2028.

For the employee

  • Sick leave and unusual leaves insurance applies from 19 July 2026.

Source: DLA Piper - Social Protection Law under Sultani Decree No. 60/2025 · Last verified 1 October 2026

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