Payroll, HR and Omanisation services in Oman

The legal framework

• Labour Law (Royal Decree 53/2023) covers employment contracts, working hours, leave, termination and end-of-service.
• Social Protection Law (Royal Decree 52/2023) created the unified Social Protection Fund. It sets contributions for Omani employees and is reforming benefits, including arrangements for expatriate end-of-service, under transitional timetables.
• Wage Protection System (WPS). Salaries must be paid through Omani banks or approved channels under WPS, so the Ministry of Labour can verify payment.
• Omanisation decisions from the Ministry of Labour set sector targets and reserve certain occupations for Omani nationals.

Our payroll and HR services

• Monthly WPS payroll processing and payslips
• Employment contracts and policies aligned with the 2023 Labour Law
• Social Protection Fund registration and contribution calculations for Omani staff
• End-of-service calculations and provisions
• Leave, overtime and final settlement calculations
• Omanisation tracking and Ministry of Labour reporting
• Coordination with our PRO team for work permits and visas

Omanisation in practice

Your Omanisation percentage affects how many work permits you can get, the fees you pay and your eligibility for government contracts. Practical steps include planning hiring early, using national employment and training programmes, and keeping records that show compliance. Read our Omanisation rules guide.

Who needs this service

Companies hiring their first employees in Oman, foreign-owned companies without an in-house HR team, and growing businesses that need to keep WPS payroll, social protection and Omanisation reporting in order as headcount rises.

What employers must do

How our payroll service works

1. Set-up: employee records, contracts, salary structures, WPS and social protection registration.
2. Monthly payroll: salary calculation, WPS file, payslips and contribution reports.
3. Joiners and leavers: contracts, permits, visas, final settlements and cancellations.
4. Reporting: payroll journals for your accounts and Omanisation status.

Common mistakes

• Paying salaries outside WPS, which leads to penalties and blocks new permits.
• Hiring before checking Omanisation status, then being refused expatriate permits.
• Missing social protection registration for new joiners.
• Underestimating end-of-service liabilities in the accounts.

Why MakeMyCompany

We combine payroll with PRO services and employment visas, so every hire, permit and payment is consistent. Read more in Omanisation rules, Oman employment law for employers and the Social Protection Fund.

Situations we handle

Payroll and HR needs change with company size:

• First hires: setting up contracts, payroll and social insurance.
• Growing team: monthly payroll, leave and end-of-service calculations.
• Omanisation targets: planning hiring and reporting.
• Audit by the labour authority: providing correct records.

What to prepare for payroll and HR

1. Employee contracts and visa details.
2. Salary and allowance structure.
3. Social insurance registrations.
4. Leave and attendance records.
5. Omanisation plan, if relevant.

Frequently asked questions

Is WPS mandatory in Oman?

Yes. Employers must pay wages through the Wage Protection System so the Ministry of Labour can confirm salaries are paid on time.

Do expatriate employees get end-of-service benefits?

Yes. End-of-service entitlements apply under the Labour Law, and the Social Protection Law is changing how these are funded through transitional arrangements. We keep your calculations aligned with the current rules.

Do I need to hire Omanis?

Most companies must meet the Omanisation target for their sector, and some job titles can only be filled by Omanis. Small, new companies may have phased requirements.

Can you run payroll for a company with only one or two employees?

Yes. Small payrolls still need WPS, contracts and contributions, and outsourcing keeps them compliant at low cost.

Do you help draft employment contracts?

Yes. See our guide on drafting employment contracts in Oman.

Do all companies need to hire Omani employees?

Many activities have Omanisation targets. The requirement depends on the sector and company size. We check your target.

How is end-of-service pay calculated?

It follows the Labour Law, based on years of service and salary. We calculate it for you.

Do I need to pay through the Wage Protection System?

Yes. Employers must pay salaries through the system. We set it up.