How Oman’s 30% Discount on Expat Permit Fees for Meeting Omanisation Targets Can Boost Your Business Efficiency
Muscat: The Ministry of Labour has introduced a new incentive system offering discounts on expatriate permit fees to companies that meet Omanisation targets.
Employers who comply with the required Omanisation percentages will receive a 30% reduction in permit fees. Conversely, companies failing to meet these targets will face doubled fees.
The Ministry has emphasized that compliant employers will be eligible to bid for government and private tenders, where meeting Omanisation quotas is a prerequisite. Additionally, such employers can benefit from wage subsidies, thereby supporting the national economy and helping achieve Sustainable Development Goals.
Specifically, the 30% discount applies as follows:
- RO 301 fees for issuance or renewal of Work Permits and Work Practice Licenses, and registration of worker data for occupations in the First Category.
- RO 251 fees for Work License issuance, Work Practice License issuance and renewal, and worker data registration for Second Category occupations.
- RO 201 fees for Work License issuance or Work Practice License issuance and renewal, and worker registration for Third Category occupations.
- RO 2301 fees for Work License issuance, Work Practice License issuance and renewal, and data registration for occupations under the Investor Category.
Fee payment is required only after the Ministry approves applications for Work Permits or Work Practice Licenses.
If an employer delays renewing a Work Practice License or registering worker data, a penalty of RO 10 per month will be imposed, capped at RO 500 per worker. The delay period is calculated from the worker’s arrival or license expiry date, with fines applied individually for each violation.
For employers who are natural persons, the monthly fine for delaying worker status regularization is RO 15; for juridical persons, it is RO 20 per month. This fine applies from license expiry until the worker’s status is regularized, whether by departure, transfer of services, absconding report filing, death registration, or visa changes. The total fine per worker cannot exceed RO 500.
Exceptions to fee and fine payments include cases where a worker has filed a labor complaint after their contract expiry until a final judgment is reached, or instances involving the worker’s death, visa changes, departure from Oman, or visa expiry after departure, provided the Royal Oman Police have canceled the residence permit.
This policy aims to reinforce Omanisation compliance while supporting the national workforce and economic development.
Special Analysis by Omanet | Navigate Oman’s Market
The Ministry of Labour’s new incentives for Omanisation present a strategic opportunity for businesses to reduce operational costs by up to 30% on expatriate permit fees while aligning with national employment goals. However, non-compliance risks significant financial penalties and exclusion from lucrative government and private tenders, making Omanisation compliance a critical factor for sustainable business growth and competitive advantage. Smart investors and entrepreneurs should now prioritize local talent integration and proactive workforce planning to maximize these benefits and navigate regulatory requirements effectively.
