In today’s competitive Gulf economy, understanding pay scales isn’t just paperwork, but a business advantage. For UAE-based firms setting up in Oman or hiring remote Omani staff, one big question lingers: What is the minimum wage in Oman, and how does it affect business decisions in 2025?
This guide answers that and more, without the fluff. Whether you’re hiring locals, bringing in expats, or expanding into Oman’s growing sectors, here’s everything UAE businesses need to know.
What is the Minimum Wage in Oman?
Here’s a clear breakdown of Oman’s wage structure for locals and foreigners that every UAE business must understand before hiring.
The minimum wage in Oman is officially OMR 325 per month for Omani nationals. This includes a base salary of OMR 225 and a fixed allowance of OMR 100 meant for living expenses.
There’s a key distinction when it comes to foreign workers: there is no official minimum wage in Oman for foreigners. Salaries for expats are determined by job role, sector, experience, and employer discretion. However, businesses are expected to offer fair wages based on the market average.
This information is based on recent updates from Oman’s Ministry of Labor and is consistent with the 2025 employment regulations currently in effect.
Why This Matters for UAE-Based Businesses
Understanding Oman’s wage laws helps UAE companies stay within legal limits and build stronger, more reliable teams.
Hiring Omani Nationals Comes With a Set Standard
When employing Omani nationals, UAE-based companies must adhere to the OMR 325 minimum wage. This isn’t optional. Skipping it could risk fines or the loss of business licenses.
Hiring Foreigners Offers More Flexibility
While there’s no minimum wage for foreigners in Oman, businesses must still act responsibly. Lowball offers may save money short-term, but they damage employer reputation and create retention issues in the long run.
Sector-Specific Impact: Where Minimum Wage Matters Most
The impact of minimum wage differs by industry, especially in Oman’s mixed expat and local workforce.
Construction and Contracting
This industry largely employs expat labor. Because there’s no set floor for foreign workers, companies must benchmark salaries properly. Typical pay can range between OMR 140 to OMR 250 per month, based on skill level.
Retail and Hospitality
A mixed workforce makes wage planning more complex. UAE brands expanding into Oman’s retail scene must offer fair wages to both local and expat employees, while adhering to Omanisation rules that prioritize local hires.
Transport and Logistics
Here, wages for foreigners vary widely. The minimum wage doesn’t apply, but companies often offer structured packages with allowances to stay competitive.
Table: 2025 Minimum Wage in Oman (Omani Nationals vs. Foreign Workers)
This side-by-side comparison helps you see how salary expectations differ for local and foreign hires in Oman.
| Worker Category | Basic Salary | Allowance | Total Monthly Pay |
| Omani Nationals | OMR 225 | OMR 100 | OMR 325 |
| Foreign Workers | No fixed base | Contract-based | Varies by industry |
Wage Trends in Oman: Are Increases Common?
Understanding past and current trends can help UAE businesses forecast future salary adjustments in Oman.
Unlike countries that revise pay annually, Oman’s wage policy is more static. The most recent change occurred in 2021, when the minimum wage for citizens was increased from OMR 300 to OMR 325.
As of 2025, there are no official plans to raise the minimum wage, but the government continues to monitor inflation and labor market needs. Future adjustments are likely to be sector-driven rather than across-the-board changes.
This section is informed by labor policy updates from Oman’s Ministry of Labour and reputable local news sources.
Living in Oman: Is the Minimum Enough?
Wages only make sense when viewed alongside real-world living costs, especially for low to mid-income earners.
The current minimum wage for locals (OMR 325) is modest, especially in cities like Muscat. While it technically covers basic living expenses, it leaves little room for savings or emergencies.
³ypical Monthly Expenses in Oman
- Shared Housing: OMR 100–200
- Transportation: OMR 30–50
- Food: OMR 60–100
- Utilities and Miscellaneous: OMR 30–50
For foreign workers, these costs are often balanced through employer-provided housing or transport allowances.
How UAE Businesses Can Handle Salaries in Oman Effectively
Salary planning goes beyond numbers, it’s about strategy, retention, and sustainability.
Follow Local Labor Laws for Nationals
Paying less than OMR 325 to Omani employees is a violation, even if the worker agrees to it. Contracts must reflect this minimum, including base salary and living allowance.
Structure Fair Offers for Foreign Workers
There’s no legal wage floor for expats, but offering below-market rates can create hiring and legal risks. Businesses should look at local benchmarks before finalizing offers.
UAE vs. Oman: Minimum Wage Differences
Here’s how the two Gulf neighbors compare when it comes to wage laws for locals and expats.
The UAE, like Oman, doesn’t have a formal minimum wage for expat private-sector workers. However, average salaries in the UAE tend to be higher due to the cost of living and sector development.
| Country | Minimum Wage for Nationals | Minimum for Foreigners | Structure |
| Oman | OMR 325 | None | Fixed for locals, flexible for expats |
| UAE | None | None | Fully contract-based |
Mistakes UAE Businesses Should Avoid in Oman
Even well-established companies sometimes make costly missteps when entering the Omani labor market.
Common Pitfalls
- Underpaying Local Staff
- Offering Too-Low Expats’ Salaries
- No Written Contracts
- Ignoring Omanisation Rules
These insights are based on real client case studies handled by our labor advisory network across the GCC.
Salary Structuring Tips: Omani vs. Foreign Workers
Good pay structures create long-term workforce stability. Here’s how to get it right.
For Omani Nationals
- Base salary of OMR 225
- Mandatory allowance of OMR 100
- Performance bonuses to retain top talent
For Foreign Employees
- Salary based on skill level and job role
- Housing or transport allowances
- Annual leave and health coverage
- Gratuity as per Omani labor law
These practices are commonly adopted by large employers and government-endorsed HR consultants in Oman.
How Often Should You Review Salaries?
Even without government mandates, UAE companies should routinely evaluate pay scales in Oman.
Why it matters:
- Keeps compensation competitive
- Reduces employee turnover
- Supports business planning in inflationary environments
Frequently Asked Questions (FAQs)
This section clears up the most common doubts UAE employers have when hiring in Oman.
What is the minimum wage in Oman in 2025?
The current minimum wage in Oman is OMR 325 per month for Omani nationals. There’s no official minimum for foreign workers, though fair compensation is expected.
Is the minimum wage uniform across all of Oman?
Yes. The wage rule applies to all Omani nationals, regardless of the region or city.
Are benefits like accommodation included in the minimum wage?
No. The OMR 325 includes only the basic salary and living allowance. Any other benefits must be specified in the employment contract.
What’s Ahead: Will Oman Change Its Wage Policies?
Future changes are likely to focus on specific industries rather than universal hikes.
The future direction of Oman’s wage policy is likely to follow regional trends. While no major increases are confirmed for now, Oman is steadily localizing its workforce. This could result in more sector-specific pay standards, especially in industries where foreign workers dominate.
This prediction is based on published labor forecasts and macroeconomic reviews conducted by Gulf-based think tanks and employer forums.
Meet EOR Middleast: The Easy Way to Hire and Pay Right
If you’re wondering how to manage payroll or hire talent in Oman without the red tape, you’re not alone. This is where a trusted local partner can make all the difference.
The All-in-One Hiring Partner UAE Businesses Trust in Oman
Tired of guessing what to pay or how to stay aligned with local expectations in another country? That’s where EOR Middleast steps in. We help UAE businesses expand into Oman with ready-made solutions for:
- Hiring and onboarding
- Payroll and salary structuring
- Staying aligned with Omani labor law
- Handling contracts for both locals and foreigners
With us, you don’t have to figure it all out; already done it for you.
Final Take: It’s Not Just About the Numbers
The minimum wage in Oman isn’t a box to tick, part of a bigger story about fair pay, smart hiring, and sustainable business growth. For UAE companies entering Oman’s market, understanding wage laws gives you an edge, financially and ethically.
With the right partner, expanding your team across borders doesn’t have to feel like a gamble. Let EOR Middleast Zone help you do it right, the first time.
