Oman Payroll Process
HLB Oman Payroll Team
A brief overview
For a non-specialized, payroll is about getting your wages/salary paid on a specific date of every month. For a professional, many factors need to be considered such as payroll policy, labor law and they must also ensure that every employee gets paid the actual amount after any deductions/ additional earnings.
Every country has different processes and policies with regard to payroll and also laws and regulations for the safety of Human resources. Here we have covered some important points about the Payroll Process in Oman.
What is the frequency of salary payment in Oman?
Article 51 of Oman Labour Law states as follows,
- Employees working on a monthly wage should receive their salaries at least once a month,
- If the employee works by piecemeal, or if the work period exceeds at least two weeks the employee should be paid for the work done in the first week, and the balance should be settled one week after completion of the job.
- In other cases, the employee should be paid once every week or fortnightly. If the employee agrees in writing with his employer, he can receive his salary once every month.
Are there any statutory pay components in Oman?
Oman labor law does not specify any fixed pay components that should make up an employee’s salary.
Which are the common pay components that are normally payable to employees?
Fixed components may include Basic salary, House rent allowance and Conveyance Allowance. The variable components may include Overtime, Sales commission, Bonus, Incentives, Relocation allowances, Leave passage etc.
What is the minimum Salary in Oman?
Oman’s minimum wage is 325 Omani riyals per month for Omani nationals. There is no specified minimum wage for expatriate workers. Please refer to the following article on the ministerial decree
What are the maximum working hours in Oman?
The maximum number of working hours in Oman is nine hours per day which includes at least half an hour of rest. During the holy month of Ramadhan, the maximum number of working hours for Muslim employees is six a day.
How is Overtime Calculated?
As per Article 70, the employee must get paid extra for the additional hours worked, and the employee is entitled for overtime work plus at least 25% against their basic salary. 50% overtime is provided when an employee works on his day of rest and 100% overtime is provided when an employee works during a national holiday.
How is gratuity accrued?
As per Article 39 of Oman Labor Law, Gratuity calculation is accrued against the last drawn basic salary on the following basis.
- A service period below 3 years at 15 Days per year.
- Three Years and above at one month (30 Days) salary per year.
Please refer to our detailed article on strong