Discount on Expat Permit Fees for Firms Meeting Omanisation Targets: What It Means for Your Business in Oman
Muscat: The Ministry of Labour (MoL) has introduced a new system, based on Ministerial Decision 602/2025 issued in October, to incentivize companies that achieve Omanisation targets by offering discounts on expatriate permit fees.
Employers who meet the required Omanisation percentages will benefit from a 30 percent reduction in permit fees. Conversely, fees will be doubled for those failing to comply with these targets.
Additional advantages for compliant employers include eligibility to compete for government and private sector tenders and contracts, access to wage subsidies, and the opportunity to contribute to the national economy and support the Sustainable Development Goals.
Fee Discounts
- A 30 percent discount applies to RO 301 fees for issuing or renewing work permits, work practice licenses, and registering workers’ data for occupations under the First Category.
- The same discount applies to RO 251 fees for Second Category occupations covering issuance and renewal of work permits and licenses, and worker registration.
- RO 201 fees, applicable to Third Category occupations for similar permits and licenses, will also receive a 30 percent discount.
- For occupations categorized under the Investor Category, a 30 percent discount applies to RO 301 fees for work permits, licenses, and data registration.
Fee payments will be processed only after the MoL approves applications for work permits or the issuance/renewal of work practice licenses.
Penalties
- Employers face a RO 10 monthly fine for delays in renewing work practice licenses or registering worker data, capped at RO 500 per worker. The delay period is calculated either from the worker’s arrival date or the license expiry date. Fines apply individually to each violating worker.
- For delays in regularizing a worker’s status, natural person employers will be fined RO 15 per month, and juridical persons RO 20 per month, also capped at RO 500 per worker. This delay runs from the license expiry until the worker’s status is resolved, including departure, service transfer, absconding reports, death registration, or visa changes.
Exemptions
Employers are exempt from paying fees or late fines if the worker files a labour complaint after the employment contract expires, from the complaint filing date until final judgment. Exemptions also apply in cases of the worker’s death, visa changes, departure from Oman, or visa expiry following departure, provided the residence permit has been canceled by the Royal Oman Police.
This system aims to encourage compliance with Omanisation policies while supporting the broader goals of workforce nationalization and economic development.
Special Analysis by Omanet | Navigate Oman’s Market
The Ministry of Labour’s new incentive system offering a 30% discount on expatriate permit fees for companies meeting Omanisation targets signals a strategic push towards boosting national employment and economic sustainability. This creates a dual opportunity for businesses to reduce costs and enhance competitiveness in government and private tenders, while smart investors should consider ventures that align with Omanisation goals to capitalize on wage subsidies and regulatory compliance benefits. However, non-compliance risks hefty fines and potential exclusion from key contracts, emphasizing the importance of proactive workforce planning and Omanisation adherence.
