HRsolution » COUNTRIES » Oman

Population

Oman has a population of approximately 4.5 million people (as of 2023), with about 45% of the population consisting of foreign workers. The majority of Omanis are ethnic Arabs, while the rest of the population includes people from South Asia, East Africa, and other Arab countries.

Capital

The capital of Oman is Muscat, which serves as the political, economic, and cultural hub of the country. Muscat is known for its modern infrastructure and historical architecture.

Economic Strength

Oman’s economy primarily depends on oil and natural gas, which account for a significant portion of government revenues. However, the country is increasingly working to diversify its economy to reduce dependence on fossil fuels. Other important sectors include tourism, logistics, fishing, and mining. Oman is heavily investing in infrastructure development and diversification projects, such as the Duqm Special Economic Zone.

Culture

Omani culture is deeply rooted in Islamic traditions, with the majority of the population adhering to Ibadism, a distinct branch of Islam. Omani society values hospitality, family, and community. Important religious festivals such as Eid al-Fitr (marking the end of Ramadan) and Eid al-Adha (the Festival of Sacrifice) hold great significance. Oman is also known for its rich traditions in music, dance, and handicrafts, particularly silverwork and pottery.

Currency

The official currency of Oman is the Omani Rial (OMR), one of the strongest currencies in the world. The Omani Rial is pegged to the US dollar.

Health Insurance and Social Security System

Oman provides state healthcare for its citizens, which is free for Omani nationals. Foreign workers are required to have private health insurance, typically provided by their employers. The social security system covers pensions, disability, and sick leave benefits for Omani nationals, but foreign workers are generally excluded from these benefits.

Employer Costs

Employers in Oman must contribute to the social security fund for Omani citizens. The contributions amount to about 18.5% of an employee’s gross salary and cover pensions, work-related accidents, and disability insurance. For foreign workers, employers are generally responsible for providing health insurance, as well as accommodation and meals, depending on the terms of employment.

Salary and Bonuses

Salaries in Oman vary depending on the industry, qualifications, and nationality. The minimum wage for Omani citizens is 325 OMR (approximately 750 EUR) per month. Bonuses are common, especially around religious holidays like Eid al-Fitr and at the end of the year.

Payslips

Employers are required to provide monthly payslips that detail the basic salary, any bonuses, social security contributions, and other deductions. Transparent salary records are a legal requirement.

Public Holidays

Oman has a number of public holidays, both religious and national, including:

  • Eid al-Fitr (end of Ramadan)
  • Eid al-Adha (Festival of Sacrifice)
  • National Day (18th November)

Religious holidays follow the Islamic lunar calendar, so their dates vary each year.

Working Hours

The standard working hours in Oman are 48 hours per week, spread over 6 days, with a daily work schedule of 8 hours. During the holy month of Ramadan, working hours for Muslim employees are reduced to 6 hours per day. Overtime must be paid according to legal requirements.

Vacation

Employees in Oman are entitled to 30 days of paid annual leave after completing one year of service. Additionally, they are entitled to paid time off during public holidays. Special leave for events such as weddings and family-related occasions is also available.

Sick Leave

In the event of illness, employees are entitled to up to 10 weeks of sick leave per year. The first two weeks are fully paid, the next four weeks are paid at 75%, and the final four weeks are paid at 50% of the normal salary. A medical certificate is required to claim sick leave.

Termination/Severance

Omani labor law requires a 30-day notice period for termination. If an employee is dismissed without cause after completing one year of service, they are entitled to severance pay, typically calculated as half a month’s salary for each year of employment. For employees who have been with the company for more than 10 years, the severance pay may be higher.

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