For small businesses in Muscat

HR software in Muscat for small businesses

Oman's Labour Law, issued by Royal Decree No. 53 of 2023, cut working hours to 40 a week, the Wage Protection System has been phased in until 2026, and the Social Protection Fund collects social insurance for Omanis. HR FLARE keeps people, leave and OMR payroll together.

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What are working hours in Oman under the new law?

A maximum of eight hours a day and 40 hours a week, down from nine and 45, with a daily break of at least one hour. In Ramadan, six hours a day and 30 hours a week for Muslim employees. The law took effect on 26 July 2023.

Who regulates employment in Muscat?

The Ministry of Labour for the law and wage protection, the Social Protection Fund for social insurance.

Topic	Authority	What it means for you
Labour law	Ministry of Labour	Royal Decree No. 53 of 2023, which repealed the 2003 law
Wage protection	Ministry of Labour and financial institutions licensed by the Central Bank of Oman	Wages transferred within three days of the end of the pay period, under Ministerial Decision No. 729 of 2024
Social insurance for Omanis	Social Protection Fund (SPF)	Employer 11% old age, disability and death, 1% work injury, 0.5% job security, 1% maternity, 1% sick leave. Employee 7.5% and 0.5%. Wage ceiling OMR 3,000
Expatriate end of service	Social Protection Fund	The savings scheme replacing gratuity is postponed to 19 July 2027

WPS, phased in

The Ministry of Labour applies the Wage Protection System to all private sector companies, with payments going through banks and financial institutions licensed by the Central Bank of Oman. In 2025 it required 75% workforce coverage from September wages and 90% from November wages, with full compliance expected in 2026. Wages must be transferred within three days of the end of the pay period.

HR FLARE does not create the Oman WPS file today. It keeps each employee's payroll record in OMR, and the bank prepares the file and makes the transfer.

Leave and social insurance

Annual leave is at least 30 paid days. Omani employees contribute to the Social Protection Fund under the Social Protection Law. Expatriates are being brought into work injury, sick leave and maternity insurance, and the savings scheme that will replace end of service gratuity, funded by a monthly 9% of salary, has been postponed to 19 July 2027.

Holidays in Oman

Holidays are set by Royal Decree No. 88 of 2022 as amended by Royal Decree No. 15 of 2025. Eid al-Fitr runs from 29 Ramadan to 3 Shawwal, Eid al-Adha from 9 to 12 Dhu al-Hijjah, and National Day is now 20 and 21 November instead of 18 and 19 November.

Since 2026 the government announces the holiday calendar in advance and moves single day holidays next to the weekend: in January 2026, the Sultan's Accession Day was observed on Thursday 15 January and Isra and Mi'raj on Sunday 18 January. From June to August, work at exposed sites is banned from 12:30 to 3:30 pm.

Typical HR tasks in Muscat

Paying every employee through WPS within three days of month end.
Setting rosters to 40 hours a week, and 30 hours in Ramadan for Muslim staff.
Registering Omani employees with the Social Protection Fund and paying contributions.
Adjusting holiday dates in the system when the advance calendar comes out each year.
Moving outdoor work outside the summer ban hours.

How HR FLARE helps in Muscat

Real capabilities in the product today. The free plan covers up to 5 employees.

Payroll in OMR

Gross, deductions, net and payslips in OMR, with a full record of every run.

Public holidays

Islamic holidays are pre-computed from the Umm al-Qura calendar, and you shift any date to match the official announcement in Oman.

Configurable weekend

Friday and Saturday or any days your company uses, and leave is counted on that basis.

Hijri dates

Dates show in Hijri next to Gregorian, which makes Ramadan and Eid planning easier.

Arabic and English

A full right to left Arabic interface, and every user picks their own language.

AI assistant and MCP

Ask about your team in your language, or connect HR FLARE to Claude or ChatGPT over MCP.

What HR FLARE does not do

No Oman WPS file: your bank prepares the file and pays salaries; HR FLARE keeps the payroll record.
No SPF calculation: Social Protection Fund contributions are calculated and paid outside HR FLARE.
Data location: data is hosted in Europe; in-country hosting is not available.

Frequently asked questions

What are the WPS compliance deadlines in Oman?

The Ministry of Labour required 75% workforce coverage from September 2025 wages and 90% from November 2025 wages, with full compliance expected in 2026. Wages are transferred within three days of the end of the pay period.

When is Oman's National Day holiday now?

On 20 and 21 November, after the amendment by Royal Decree No. 15 of 2025. Before that it was 18 and 19 November.

How much does an employer pay to the Social Protection Fund for an Omani employee?

The employer share totals 14.5%: 11% old age, disability and death, 1% work injury, 0.5% job security, 1% maternity and 1% sick leave, with a wage ceiling of OMR 3,000 a month.

Has expatriate end of service gratuity been abolished in Oman?

Not yet. The savings scheme that will replace it, funded by a monthly 9% of salary, is postponed to 19 July 2027, so the current gratuity applies until then.

Does HR FLARE run payroll in OMR?

Yes. You can set the Omani rial as the company currency, so payroll records and payslips show in OMR. The WPS file and contributions go through your bank and the fund.

Sources

Last reviewed 30 September 2026. This page is general information, not legal advice: always confirm with the official authority.

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