Our specialists can offer payroll services in Oman as soon as you start your company here. We invite you to explore the key components of payroll in Oman and also get in touch with our local accounting firm.
Table of Contents
What is payroll?
A specific process through which salaries are calculated and distributed according to the company policies. Such a process is performed by a payroll specialist in Oman.
What is the legislation for payroll in Oman?
- Omani Labor Law (Royal Decree 53/2023),
- Social Protection Law (Royal Decree 52/2023).
NOTE:Wage Protection System (WPS) regulations also apply.
How is the payroll process done in Oman?
- accessing the employees list provided by the firm,
- calculating tax salaries,
- verifying employee leaves and benefits,
- submitting payroll execution for approval,
- distributing the salaries in the firm.
NOTE: Our payroll specialist in Oman can provide externalized services to your firm. The Labor Law applies to companies in Oman.
What are the payroll taxes in Oman?
- there is no personal income tax in Oman,
- 11.5% – 14.5% for Social Protection Fund (SPF) paid by the employer,
- 7% as employee contribution.
IMPORTANT: An 8% personal income tax might be imposed starting with January 2028 for annual income exceeding OMR 42,000.
What information is required for payroll in Oman?
- Work contracts,
- Payroll slips,
- Salary payment records,
- Social security & tax filings, etc.
Do you assist in tax inspections for companies in Oman?
Of course. Ourpayroll specialists in Omancan represent companies in various tax inspections to ensure all documents comply with the local regulations.
How are wages paid in Oman?
Monthly.
NOTE: The minimum wage in Oman is OMR 325 (around USD 845).
What is the payroll cycle in Oman?
Monthly.
Is severance pay available in Oman?
Yes. This is known as “end-of-service gratuity”. Employees must complete at least one year of employment with the company to be eligible for severance pay.
Why is externalized payroll recommended to companies in Oman?
There are many reasons why company owners in Oman choose to externalize payroll services. Here are a few of them:
- lower risks in payroll procedures,
- correct calculations and filings,
- accurate employment records,
- complete support for tax inspections in Oman,
- up-to-date with payroll legislation modifications,
- data protection,
- affordable pricing for complete payroll services and more.
If you are a foreign entrepreneur who wants to start a business in Oman, you may collaborate from the start with our payroll specialists. Feel free to get in touch with our law firm in Oman, as we can put you in contact with such specialists. Get your personalized offers today.