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Oman has no personal income tax, PASI pension for Omani nationals (employer 11.5%), ESG for expats (15 days/year rising to 1 month/year), and Omanisation quota requirements. Rippling handles PASI, Ministry of Labour, and Oman Labour Law compliance.
Oman is a Gulf state with a moderate, open society and significant oil and gas revenues. Muscat is the primary business hub. Oman is diversifying its economy through tourism, logistics, and technology. Oman has no personal income tax and uses work visa sponsorship for expatriate employees. Oman is a smaller but stable GCC EOR market, commonly combined with UAE or Saudi Arabia coverage.
| Contribution | Rate | Notes |
|---|---|---|
| PASI (Omani nationals) | 11.5% | Omani nationals only; expats exempt from pension |
| Occupational hazard insurance | 1% | All employees including expats |
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| Contribution | Rate | Notes |
|---|---|---|
| PASI (Omani nationals) | 7% | Omani nationals only; expats exempt |
| Income tax | 0% | No personal income tax in Oman |
No personal income tax in Oman. Zero employer withholding obligation on employment income.
ESG (expats): 15 days/year (years 1–3); 1 month/year (years 3+). Paid within 7 days of last day. Notice: minimum 1 month. Omanisation quota must be maintained post-termination. Work visa must be cancelled on termination.
Omanisation is Oman's mandatory programme requiring private sector employers to hire minimum percentages of Omani national employees, which varies by sector (typically 10–35%). Employers who fail to meet their Omanisation quota cannot process new work visa applications. EOR manages Omanisation quota compliance through the EOR entity's combined workforce across multiple client companies.
Oman has no personal income tax on employment income. All employees — Omani nationals and expatriates — pay zero income tax on their salaries. This is a major draw for international professionals. Corporate tax applies to companies but not to individual employment income.
End of service gratuity (ESG) for expat employees: 15 days' basic salary per year for the first 3 years; 1 month per year thereafter. Paid on termination or resignation (after 1 year of service). Must be paid within 7 days of the last working day. Rippling EOR tracks ESG accrual.
Oman's minimum wage for Omani nationals in the private sector is OMR 325/month (2024). There is no statutory minimum for expatriate workers. Market rates for expats are set by supply and demand.
