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Oman rolls out new labour reforms: Longer licenses, fee cuts announced

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Muscat: Oman’s Ministry of Labor has announced new labour reforms under Ministerial Decision No. 602/2025, introducing longer work-license validity, lower fees, and exemptions for several worker categories.

The new rules are aimed at improving the labour environment, simplifying procedures, and aligning work-license validity with worker residency periods. Officials said the move reinforces the relationship between employers and employees while ensuring protection of rights and reducing violations.

Under the reforms, work licenses for non-Omani workers will now be valid for 24 months instead of 15, reducing administrative and financial burdens on employers.

The Ministry has also granted fee exemptions for individuals with disabilities, elderly people, and low-income families hiring domestic workers, drivers, or caregivers.

Companies that meet Omanisation targets will receive a 30 per cent fee reduction, while those that fail to meet localisation goals will face higher charges.

The reforms also cut recruitment fees for non-profit and humanitarian organisations from RO 141 to RO 101, and introduce a maximum penalty of RO 500 per worker for late renewals.

Officials said the decision supports Oman’s efforts to create a fairer and more efficient labour system while balancing business needs and worker rights.

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