17 February, 2021
New fees for obtaining work permit to recruit non-Omani Workforce
Oman’s Ministry of Labour (“MOL”) issued a Ministerial Decision (“MD”) No. 12/2021 published in the Official Gazette on 31 January 2021, introducing an increase in the fees related to obtaining work permit for recruiting non-Omani workforce. This is part of a series of initiatives taken by the Omani government recently with the aim of addressing nationalisation program targets by making the national labour force less expensive for employers to recruit. It is also aiming at serving the objective of optimising non-oil revenue of the country amid current economic conditions caused by COVID-19.
The introduced new fees are ranging between OMR 140, which is for work permit of domestic workers and the like, to OMR 2,000, which is for top positions as classified by the MOL and specified professions set out in the MD or for employees with monthly salary of OMR 4,000 & above, regardless of their occupation.
Special consideration is given to Small-&-Medium-Enterprises (“SMEs”) of which the respective fees for obtaining work permit can be as low as OMR 100 during the first two years of establishment subject to meeting certain conditions.
The new fees will be effective within 90 days from the date of issuance of the MD in the Official Gazette i.e. by 1st May 2021.
Prior to MD 21/2021
Fees for obtaining work permits for recruiting non-Omani workforce were increased for the last time in year 2016, via MD 340/2016. The fees at that time were ranging between OMR 140, for domestic workers and the like, to OMR 200 for farm workers and camel breeders, and OMR 300 for any other occupations. There were no significant changes to the respective fees from year 2016 till last month when the above-mentioned legislation amended via MD 21/2021 introducing a hike in the fees at more than 5 times of previous fees for certain cases, and specifying the fees based on the levels and types of profession and occupations.
In line with the country’s nationalisation program and in order to address the increasingly demand for jobs by national job-seekers, the Omani government took a step forward and increased the fees for obtaining work permit for recruiting non-Omani workforce with the aim of making the national workforce more attractive and less expensive for the employers. This initiative is also aiming at meeting the country’s objective of optimising the non-oil revenue of the state.
Beside the significant increase in the fees, the MD has also made those fees specific to different levels of positions and different types of profession and occupations. Below is a summary of the major amendments introduced in relation to the respective fees and other provisions :
Fees for obtaining/ renewal of work permit
The respective new fees are various in amount based on the occupations and salary range. The highest fee is OMR 2,000 which is for obtaining and renewing work permit for recruitment of non-Omani workforce at high-level professions and certain specified professions as set out in the MD (see Professions List) or non-Omani workforce with monthly salary of OMR 4,000 and above irrespective of occupation. The lowest fee is at OMR 140 which is for obtaining and renewing work permit for domestic workers and the like.
Temporary Work Permits
The MD has also introduced amendments to work permit fees related to certain professions and occupations of which temporary work permits can be obtained, when necessary, and which are for a period between 4 months to 9 months only. Different fees have been determined based on the profession whether it is of high profession, medium profession, or technical and specialised professions as specified by the MOL.
Work Permits in the Case of SMEs
Furthermore, reduced fees have been specified for the SMEs within their first two years of establishment, except in the case of recruiting non-Omani workforce for the professions specified in the MD (see Professions List). Those reduced fees are available to the SMEs, as mentioned above, subject to fulfilling the below conditions :
The enterprise shall be owned by owners who are dedicated to managing it - other than retirees - registered with the SMEs Development Authority, and insured by the Public Authority for Social Insurance, and that the age of the employer ranges between 22 (twenty two) and 40 (forty years)
The benefit shall be available to one enterprise only and not for other enterprises owned by the same owner
At least one Omani shall be employed if the license application is for a number of 6 (six workers) to 10 (ten workers). This condition is not required to be fulfilled in the case of the license application is for number of non-Omani workers less than 6.
The below tables illustrates the respective new fees for obtaining or renewing work permits for the non-Omani workforce, including the license/renewal fee of OMR 1 per work permit :
Sr.No | Work permit to recruit & register the data of non-Omani workforce (non SMEs) | Total Fee for Registration including OMR 1 fee for Issuance/Renewal per worker |
1 | For occupation of high level professions as specified by the MOL and professions listed in the MD (refer to Professions List) or Monthly salary of OMR 4,000 and above irrespective of occupation |
2,001 |
2 | For occupation of medium level professions as specified by the MOL or Monthly salary of OMR 2,500 to OMR 3,999 irrespective of occupation |
1,001 |
3 | For occupation of specialised & technical professions as specified by the MOL | 601 |
4 | For occupation of a profession of an artisan marine fisherman | 361 |
5 | For occupation of any other profession not included in item numbers 1 to 4 above | 301 |
6 | For domestic workers and the like (1 to 3 workers) | 141 |
7 | For domestic workers and the like ( 4 workers & more) | 241 |
8 | For farm workers and camel breeders ( 1 to 3 workers) | 201 |
9 | For farm workers and camel breeders (4 workers & more) | 301 |
Other applicable fees :
Sr.No | Work permit to recruit & register the data of non-Omani workforce (SMEs) | Total Fee for Registration including OMR 1 fee for Issuance/Renewal per worker |
1 | For 1 to 5 workers subject to fulfilling certain conditions (applicable only during first two years of establishment of the SME) |
101 |
2 | For workers from 6 to 10 subject to fulfilling certain conditions (applicable only during first two years of establishment of the SME) |
151 |
3 | For occupation of professions listed in the MD (refer to Professions List) subject to fulfilling certain conditions | 1,001 |
*Note : In the case of recruitment of more than 10 non-Omani workers, the reduced fees mentioned-above will cease to apply.
First: Information systems professions
Information systems security & protection specialist | Geographic information systems specialist |
Electronic computer networks | Electronic maintenance of programmed machines |
Electronic Computer maintenance | Electronic Draftsman |
Electronic monitoring equipment assembly agent | Electronic Technician - Communications |
Electronic technician - Control devices | Electronic technician - Medical devices |
Electronic technician - Radio transmission | Electronic technician - Programmed machines |
Electronic technician - Computer networks | Computer programmer |
Electronic computer engineer | Electronic computer operator |
Second: Marketing and Sales professions
Sales specialist | Stockist |
Commercial Agent |
Commercial Manager |
Purchasing and logistics specialist |
Third: Administration and human resources professions
Business Administration Specialist | Public Relations Specialist |
Human resources specialist |
Administration Manager |
Fourth: Media professions
Media specialist |
Pages organiser |
Paper-drying machine operator |
Binding machine operator |
Book decoration machine operator |
Paper-polishing machine operator |
Paper-dye machine operator |
Invoice printing machine operator |
Cylindrical printing machine operator |
Rotary printer operator |
Offset printing machine operator |
Colour printing machine operator |
Flatbed printing machine operator |
Paper-folding machine operator |
Paper-coating machine operator |
Advertising agent |
Fifth: Medical professions
Dresser | Pharmacist Assistant |
Medical coordinator |
|
Sixth : Airport professions
Flight guide | Stockist |
Tickets inspector |
Aircraft Take Off Monitor |
Air traffic controller |
Aircraft Landing Monitor |
Airport passenger transport monitor |
Ground guide |
Seventh: Engineering professions
Architect |
Survey engineer |
Civil engineer |
Electronic engineer |
Electrical engineer |
Mechanical Engineer |
Project Manager |
|
Eighth: Technical occupations
Buildings technician (building supervisor) |
Electronic technician |
Road technician (road controller) |
Mechanical technician |
Laboratory technician / soil mechanics |
Steam turbine technician |
Lab technician / construction materials |
Gas networks technician |
Construction technician |
Transfer stations technician |
Generating stations technician |
Electrician technician |
Thermal coefficient technician |
Maintenance technician |
Chemical technician |
|
For many years, the fees associated with work permit of recruiting non-Omani workforce was to some extent a fixed cost that does not vary based on the level of position, salary range, or type of profession to be occupied by such workforce. With the amendments brought by the MD, it is no longer a flat fee, and therefore, employers may have to assess the impact of such significant increase in fees on their businesses in terms of recruitment costs compared to the needs and benefits of hiring non-Omani workforce. The major impact would be in terms of high to medium level professions, hires with monthly salary between OMR 2,500 to OMR 4,000, as well as the specified professions as set out in the MD.
The initiative of introducing the new fees is among other developments expected to take place in respect of the labour market in Oman such as the new labour law which is expected to be issued within the first quarter of year 2021 and the change in work permit system which will be replaced by a new electronic employment system, as per a statement made by His Excellency the Under-Secretary of MOL during a press conference.