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Oman offers 30% expat permit fee discount to firms meeting Omanisation targets

• By Anjum Khan
Oman offers 30% expat permit fee discount to firms meeting Omanisation targets

The Ministry of Labour has introduced a new incentive framework offering private sector firms a 30% discount on expatriate permit fees if they meet prescribed Omanisation targets, in a move aimed at accelerating national workforce participation.

Under the new system, companies that comply with the required Omanisation percentages will benefit from reduced permit fees, while those that fail to meet the quotas will face a doubling of the applicable fees. The ministry said the policy is designed to encourage stronger alignment with national employment objectives.

In addition to the fee incentive, compliant employers will be eligible to compete for government and private tenders that require adherence to Omanisation quotas. 

They may also access wage subsidies and other support measures intended to strengthen the national economy and advance the Sultanate’s Sustainable Development Goals.

Discount structure by category

The 30% fee reduction will apply across multiple occupational categories:

The ministry clarified that payment of the stipulated fees will be required only after approval of the work permit or licence application.

Penalties for delays

The regulation also outlines financial penalties for late compliance. Employers will incur a delay fine of RO10 per month for failing to renew a Work Practice License or register worker data on time, capped at RO500 per worker. 

The delay period will be calculated from either the worker’s arrival date or the licence expiry date, depending on the case.

Separate penalties apply for delays in regularising a worker’s status:

These fines will also be capped at RO500 per worker and calculated from licence expiry until the worker’s status is resolved, whether through departure, transfer, absconding report, death registration, or visa change.

Exemptions 

Employers will not be required to pay the prescribed fees or delay fines in certain circumstances. These include cases where a worker files a labour complaint after contract expiry (from filing until final judgment), as well as situations involving the worker’s death, visa change, or permanent departure from Oman, provided the residence permit has been cancelled by the Royal Oman Police.

The ministry said the measures form part of broader efforts to balance labour market needs while strengthening opportunities for Omani nationals in the private sector.