Image credit: Oman News Agency
The Ministry of Labor in Oman has issued Ministerial Decision No. 602/2025, introducing a comprehensive new regulatory framework for work licenses and practice permits. The decision brings substantial incentives, fee reductions, and exemptions for employers, marking a major regulatory shift in the Sultanate’s labor market.
According to the Oman News Agency, the move is part of the Ministry’s ongoing effort to enhance the work environment, simplify administrative procedures, and align license validity with worker residency periods, reflecting a strategic focus on streamlining labor governance in Oman.
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Officials emphasised that the new decision reinforces the regulatory framework governing employer-worker relationships, ensuring the protection of rights while reducing potential violations. At the same time, existing fees for domestic worker recruitment remain unchanged, and all related procedures are maintained to ensure that families and business owners do not incur additional financial burdens.
This approach underscores the ministry’s commitment to balancing the needs of employers with the rights of workers, while ensuring that recruitment processes remain secure, transparent, and compliant with the law.
Fee exemptions target vulnerable groups
A key aspect of the decision is its comprehensive exemptions for vulnerable populations. Individuals with disabilities, elderly persons unable to care for themselves, beneficiaries of household income support schemes, and people requiring specialised medical care are all eligible for fee exemptions when hiring domestic workers, child caregivers, private drivers, private nurses, or home health assistants.
By prioritizing these categories, the ministry demonstrates its humanitarian responsibility, ensuring essential care reaches those most in need while alleviating financial pressure on families. The move is part of a broader strategy to strengthen social solidarity and support vulnerable segments of society.
The reforms also extend the validity of work licenses for non-Omani workers from 15 months to 24 months. This measure aligns license periods with residency durations, addressing employer needs while reducing administrative and financial burdens. It also provides business owners with greater stability in workforce planning, a critical factor in effective human resource management.
In addition, the ministry has simplified administrative procedures by allowing upgrades of profession categories on work practice licenses through payment of the fee difference, eliminating the need to issue entirely new licenses. This step is designed to enhance operational flexibility and efficiency within the labor market.
The reforms further recognise the role of civil society and humanitarian institutions. Fees for recruiting non-Omani workers in qualifying organizations have been reduced from RO141 to RO101, reflecting their vital contributions to the community.
The decision also introduces a 30 per cent reduction in license fees for employers compliant with Omanisation targets, while non-compliant establishments face doubled fees. This strategic incentive encourages national workforce employment and supports Oman’s broader goals of workforce localization and labor market development.
Structured fees and penalty measures
Ministerial Decision No. 602/2025 introduces structured facilities for fee payments and delay penalties, with a maximum penalty of RO500 per worker for late license renewals or worker data registration. This measured approach encourages timely compliance while avoiding excessive financial strain on employers.
The decision also provides exemptions from fees and penalties in specified circumstances, including worker-initiated complaints after contract termination, worker death, visa changes, or departure from Oman. These measures ensure that employer-worker relationships remain fair and legally compliant.
Under the new framework, business owners can recover license fees or obtain new licenses at a nominal RO1 per worker under conditions such as worker repatriation within 90 days, failure to pass medical exams, visa non-approval, employer death, or license cancellation due to administrative or technical reasons.
Further protections include exemptions from delay penalties in cases such as chronic worker illness, passport confiscation, establishment bankruptcy, liquidation, employer death, or worker imprisonment. These provisions reflect the Ministry’s consideration for real-world employer challenges and help mitigate financial risks.
Driving labour market efficiency and social impact
The ministry confirmed that these measures are part of a comprehensive strategy to enhance Oman’s labour system, improve working conditions, and promote regulatory compliance. By combining worker protections with business flexibility, the reforms aim to support both economic growth and social welfare objectives.
Notably, the decision emphasises support for vulnerable populations, ensuring secure and organized access to essential services. Families and employers can now provide care through structured channels while meeting legal and regulatory requirements.
These reforms strengthen labor market stability, encourage regulatory adherence, and underscore Oman’s commitment to sustainable social and economic development, balancing the interests of employers, workers, and the broader community.
