Labour Ministry Introduces Package of Incentives,
Reductions, Exemptions for Work Licenses, Permits

Muscat, 26 Oct
(ONA) — The Ministry of Labour has issued Ministerial Decision No. 602/2025,
establishing a new regulatory framework for work licenses and practice permits
that introduces substantial incentives, fee reductions, and exemptions for
employers. This significant regulatory update forms part of the Ministry’s
ongoing commitment to enhancing the work environment, streamlining
administrative procedures for business owners, and ensuring alignment between
license validity and worker residency periods within the Sultanate of Oman.

The Ministry
emphasized that this decision strengthens the regulatory framework governing
employer-worker relationships, ensures comprehensive protection of rights, and
reduces violations, while maintaining existing fees for domestic worker
recruitment. All procedures concerning domestic worker recruitment remain
unchanged to safeguard the rights of both workers and employers, ensuring
families and business owners face no additional financial burdens.

This
regulatory development reflects the Ministry’s dedication to protecting all
stakeholders’ interests and facilitating access to essential services through
organized and secure channels, in full compliance with applicable laws and
regulations. The measures are designed to foster greater stability in the
labour market and establish effective oversight of recruitment processes.

The decision
introduces comprehensive fee exemptions for several vulnerable categories,
including persons with disabilities, elderly individuals incapable of
self-care, beneficiaries of the household income support scheme, and
individuals requiring specialized medical care when recruiting domestic
workers, child caregivers, private drivers, private nurses, and home health
assistants.

This policy
direction demonstrates the Ministry’s commitment to strengthening social
solidarity and ensuring essential support services reach the most vulnerable
segments of society. It reflects the state’s humanitarian responsibility in
protecting individual rights and enabling access to necessary care, while
simultaneously alleviating financial pressures on families and enabling them to
provide organized and secure care for their members.

A key
provision of the decision extends the validity period of work licenses,
increasing the duration for recruitment and work practice licenses for
non-Omani workers from 15 to 24 months. This responds to employer needs and
synchronizes license validity with worker residency periods, thereby reducing
administrative and financial burdens while providing business owners with
enhanced stability in human resource planning and workforce management.

The decision
enables business owners to upgrade profession categories on work practice
licenses from lower to higher classifications through payment of the fee
difference, eliminating the requirement for new license issuance. This
significant administrative simplification enhances operational flexibility
within the labour market.

In support of
community institutions, the decision reduces fees for recruiting non-Omani
workers for qualifying civil society organizations and humanitarian
institutions from RO 141 to RO 101, acknowledging their vital community and
humanitarian roles while strengthening partnerships and social responsibility.
The decision also introduces a 30 percent reduction in license fees for
employers compliant with mandated Omanisation rates, while non-compliant
establishments face doubled fees – a strategic incentive to promote national
workforce employment and achieve Omanisation targets.

The regulatory
framework introduces structured facilities for fee payments and delay
penalties, establishing a maximum penalty cap of RO 500 per worker for delays
in license renewal or worker data registration. This measured approach aims to
alleviate financial pressures on business owners while encouraging timely
regularization of worker status.

The decision
provides exemptions from fees and penalties in specified circumstances,
including worker-initiated labour complaints after contract termination, worker
death, visa status modifications, or worker departure from Oman. These
provisions ensure employer-worker relationships remain governed by Labour Law
provisions while maintaining equitable balance between rights and obligations.

Business
owners and individuals may recover license fees or obtain new licenses for
workers at a nominal fee of RO 1 per worker under specific conditions,
including: worker failure to pass medical examination; visa non-approval by
Royal Oman Police; worker death; worker repatriation within 90 days; one-time
service transfer within 90 days; employer death; or license cancellation for
administrative or technical reasons.

The decision
further exempts employers from delay penalties in defined circumstances,
including: employer death; diagnosis of chronic worker illness during medical
examination; passport confiscation by government authorities or embassies;
establishment bankruptcy; establishment liquidation; or worker imprisonment.
These provisions demonstrate thoughtful consideration of employer circumstances
while mitigating financial pressures.

The Ministry of Labour confirmed these
measures constitute an integral component of a comprehensive strategy to
develop Oman’s labour system, enhance labour market efficiency, improve working
conditions, and promote regulatory compliance. These reforms contribute
significantly to sustainable economic and social development, ensure worker
rights protection, support business community needs, and emphasize humanitarian
and social dimensions – particularly through support for elderly and vulnerable
groups to ensure effective and secure access to essential services and
assistance.

— Ends/Khalid