Payroll Requirements and Benefits for Expats in Oman
Employment in the Gulf is considered to be not only lucrative but ambitious too. With tax benefits, high visibility and comfortable lives as some of the key advantages, the Gulf is one of the most searched locations, in terms of employment.
What many do not look for is Oman. It does not receive the attention it deserves, and it is mostly due to ignorance. Ironically, Oman has been ranked as the second-best in GCC and seventeenth in the world. The parameters based on which the countries were ranked include quality of life, job prospects, ease of settling down and having a right work-life balance.
In UAE, Bahrain, Kuwait and Qatar made of deserts and shopping malls. Oman, on the other hand, is filled with natural beauty combined with vast landscapes. This adds to Oman’s value as one of the most loved countries in the GCC,
Did you know that over 45% of Oman’s population is made up of expats?
If you are thinking of moving to a foreign country for work, here is why Oman is a good choice.
- In a country dependent heavily on its oil reserves, the number of job opportunities is only likely to increase more than ever.
- The salary packages are comprehensive and satisfying
- The country is a pleasure to live in
- Oman welcomes highly skilled expats to work in the country
- The percentage of expats is high, therefore ensuring that fitting in never an issue
Salaries in Oman are on the rise in the year 2019 based on recent submitted salaries and reports. Salaries in 2019 are 2% higher than those of 2018. The trend suggests a slow but continuous increase in pay in 2020 and the future years. These numbers will differ slightly from industry to another.
Understanding the payroll requirements is vital before entering a new market. The payroll process refers to the steps taken to pay the employees each pay period. It involves a meticulous calculation of employees’ hours worked, their pay grade and rate, leave taken and subsequent deductions. Processing payroll ensures employees are paid based on their employment status and other Department of Labor (DOL). This process has a lot of moving parts. Missing something out can have severe consequences for both the employee as well as the organization on the whole. It is not only a critical activity, but a tricky one as well. The presence of a specialist to ensure that all regulations are taken care of can take the load off the organization.
Payroll processing requires the following
- Employer Identification Number
- Employee information
- Withholdings and deductions
- Payroll related fees paid by the employer or other parties (not be employees)
- End of year payroll tasks
Errors in payroll are expensive and can harm the reputation and bring a black mark to the resource.
Read here to know more about the payroll requirement in UAE
Benefits of expats in Oman
- Health insurance set to cover over 2 million expats: The mandatory health insurance scheme branded as ‘Dhamani’ is expected to provide coverage to an estimated two million expatriates living and working in the Sultanate in addition to visitors to the country. It also includes a number of optional benefits such as pregnancy, birth, child health, dental and eye care which are additional benefits the employer may include in the basic and compulsory coverage as agreed with the worker and the ability of the establishment to provide these benefits.
- End-of-service benefits: The employee is entitled to such end-of-service benefits, provided that he or she has served for a period of at least one year.
- Accommodation for expats: The new employees will be provided with accommodation in a luxurious hotel or a furnished apartment for at least one month.
- Government provides a stimulus for expats to own companies: The government is making an effort to attract expatriates to own businesses and create long-term living more accessible in the Sultanate, with a spike of new legislation that is aimed at boosting the economy. The government is also highlighting its free zones and logistics areas in Suhar, Duqm and Salalah and actively seeking foreign ownership to boost developments. This is a win-win situation for both Oman as well as expats.
New labour laws to protect expat workers in Oman
The Ministry of Manpower in Oman has introduced new regulations to protect the rights of the expat workers in the country. For example, when the employer absconds and the no-objection certificates are not reported; the law steps in to protect the employees. Companies against which more than five complaints are made are also being investigated.
Oman has proven to be a country that is very good for the career of expats. What is required to enter such new markets is the presence of a global employment partner such as Future Focus Infotech to walk you through the ever-changing regulations. Give us a call and we can go through the intricate procedures to ensure that nothing comes between you and a successful stay in Oman.