The Ministry of Labour has introduced Ministerial Decision No. 602/2025, a sweeping reform that restructures Oman’s work licensing and practice permit system. The decision brings fee reductions, exemptions, and new procedural flexibility for employers, while reinforcing worker protections and supporting vulnerable groups. It reflects the government’s broader drive to modernise the labour system, align administrative processes with residency laws, and promote both business efficiency and social welfare.
Streamlined licensing and extended validity periods
Under the new framework, the validity of recruitment and work practice licences for non-Omani workers has been extended from 15 to 24 months. This change directly responds to employers’ longstanding requests to synchronise licence durations with worker residency permits, cutting down on paperwork and associated costs. The longer validity aims to provide businesses with greater planning stability and reduce the frequency of renewals.The decision also allows employers to upgrade the professional classification of a worker from a lower to a higher category by paying only the fee difference, eliminating the need to apply for a new licence. This adjustment simplifies human resource operations and supports labour market flexibility.Administrative procedures for domestic worker recruitment remain unchanged. The Ministry clarified that maintaining current fees and processes protects both employers and domestic workers, ensuring families and small business owners face no new financial burdens.
Fee reductions, exemptions, and social support measures
A major component of the decision introduces targeted exemptions and reduced fees to support specific social groups. Individuals with disabilities, elderly persons unable to care for themselves, recipients of household income support, and those requiring specialized medical assistance are now exempt from paying fees when hiring domestic workers, caregivers, private nurses, private drivers, or home health aides.This measure is designed to ease financial pressures while enabling access to essential household and healthcare services. The Ministry stated that such exemptions strengthen social solidarity and reflect Oman’s humanitarian commitment to safeguarding vulnerable groups.Civil society organisations and humanitarian institutions also benefit under the new framework. Their recruitment fees for non-Omani workers have been reduced from RO 141 to RO 101, recognising their vital community role and encouraging broader social partnerships.The decision further introduces a 30% reduction in licence fees for establishments that meet mandated Omanisation targets. Employers that fail to comply with Omanisation requirements will pay double the standard fee. This measure is intended to promote employment opportunities for Omani nationals and encourage compliance with national workforce targets.
Flexible payments, penalty caps, and refund provisions
The regulatory update also restructures how penalties and payments are handled. A new ceiling of RO 500 per worker has been established as the maximum fine for late renewal of licences or delayed worker data registration. This approach is intended to reduce financial strain while promoting timely compliance with administrative obligations.Employers are now entitled to recover licence fees or obtain new licences for a nominal charge of RO 1 per worker in specific cases, including:
- Failure of a worker to pass medical examinations
- Visa rejection by the Royal Oman Police
- Death of a worker
- Repatriation of a worker within 90 days of arrival
- One-time service transfer within 90 days
- Employer death
- Cancellation of a licence for administrative or technical reasons
Fee and penalty exemptions are also granted in defined circumstances such as worker death, visa modification, worker departure from Oman, employer death, diagnosis of chronic illness during medical testing, passport confiscation by authorities or embassies, company bankruptcy or liquidation, and worker imprisonment.If a worker files a labour complaint after their contract ends, employers are exempt from related fees and fines. This ensures both parties are protected under Labour Law provisions and maintains balance in employer-employee relationships.
Building a balanced and sustainable labour market
According to the Ministry of Labour, Decision No. 602/2025 forms part of a broader national strategy to enhance labour market efficiency, improve working conditions, and foster long-term stability between employers and employees. By simplifying processes, reducing administrative complexity, and embedding social protection measures, the reforms aim to build a more transparent and resilient labour environment in Oman.These initiatives underscore the Ministry’s dual commitment to supporting business competitiveness while ensuring that humanitarian and social priorities, especially those concerning the elderly, people with disabilities, and low-income families, remain central to policy development. The new framework not only eases regulatory processes for employers but also strengthens rights protections and contributes to sustainable economic and social development across the Sultanate.
