New MoL Decision on Work Permits: What It Means for Employers and Investors in Oman
The Minister of Labor has issued Resolution 602/2025, which regulates the issuance and management of work permits and work practice permits.
A work permit is the written authorization granted by the Ministry of Labor allowing an employer to hire expatriate workers in a specific profession. A work practice permit is the written approval issued to a worker to engage in a particular profession.
The validity of a work permit is set at 24 months and is non-renewable. In contrast, a work practice permit can be valid for up to 24 months and is renewable. Temporary work permits may be issued for periods shorter than 24 months upon request.
Permits may be upgraded from a lower to a higher professional category, subject to Ministry approval and payment of the corresponding fee difference.
Permit fees for non-Omani workers employed by clubs, civil society organizations, mosques, and churches are set at RO101. Employers adhering to the mandated Omanization rates receive a 30% fee reduction, while non-compliant employers face doubled fees. These rules do not apply to investor professions.
Fee payments are due after Ministry approval of permit applications or renewals. Employers who delay renewing permits or registering worker data face a monthly fine of RO10, up to a maximum of RO500 per worker, calculated from the worker’s arrival or permit expiry date. This fine multiplies according to the number of affected workers.
Additionally, late correction of worker status incurs monthly fines of RO15 for natural persons and RO20 for legal entities, capped at RO500 per worker. Delay penalties apply from license expiry until status correction or worker departure.
Exemptions from fees and fines apply in various scenarios, including when a worker files a labor complaint, dies, changes visa status, departs Oman, or if the residence permit is canceled by the Royal Oman Police. Employers may recover or request new permit fees at RO1 per worker under specified conditions such as failure to pass medical exams, visa or residency denial, worker death within 90 days of arrival, or employer death.
Late fees are also waived if the employer dies (with a one-year exemption period), if a worker requires extended medical treatment, if the worker’s passport is withheld by authorities, in cases of establishment bankruptcy or liquidation, or if the worker is imprisoned.
Certain categories are exempt from recruitment fees, including domestic workers, nannies, private drivers, private nurses, home health assistants, persons with disabilities (with valid disability cards), individuals needing special care, elders unable to care for themselves, and beneficiaries of family income support. The exemption applies for one worker per category, with possible exceptions upon social research evaluation.
Work practice permit fees vary by profession classification as approved by the Ministry:
- First-class professions: RO301
- Second-class professions: RO251
- Third-class professions: RO201
- Investor-class professions: RO301
- Domestic workers, nannies, private drivers, gardeners, home health aides, private nurses (up to 3 workers): RO101
- For 4 or more workers in these categories: RO141
- Agricultural workers and similar specified professions (up to 3 workers): RO141
- For 4 or more in these professions: RO241
- Sailors, ship mechanics/electricians: RO201
Other fees include:
- RO5 for profession changes on work permits
- RO1 for changes in wage or bonus data
- RO5 for transferring a worker’s service to another employer
This resolution aims to streamline labor regulations while supporting Omanization efforts and protecting the rights of workers and employers alike.
Special Analysis by Omanet | Navigate Oman’s Market
The new labor permits regulation emphasizes Omanization compliance by incentivizing employers with fee reductions and imposing penalties for non-adherence, creating a clear risk for businesses reliant on expatriate labor without meeting national workforce quotas. Smart investors and entrepreneurs should now prioritize strategic workforce planning, invest in local talent development, and closely monitor permit renewals to avoid costly fines and maximize operational efficiency in Oman’s evolving labor landscape.
