We would like to inform you of recent changes to the laws governing:
- SPF payment for expats
- New prohibited expatriate worker visas
- Temporary Job Restrictions
- Foreign investment activities in Oman
Please find a summary of the key updates below:
SPF (Ex PASI) payments for Expat employees – Immediate Action:
The government requires all employers to pay a monthly contribution of 1% of Expat employees’ total salary (to a maximum of OMR 3000) with effect from July 2024. Although the first payment from SPF commenced in July, companies only received the invoice for July with the August invoice.
Please note the first payment must be made by 15th September and subsequent invoices to be paid by the 15th of each month.
Actions for Employers: Please familiarize yourself with the SPF e-portal and its functionalities.
To visit the SPF e-portal, click here.
Prohibited Professions for Expatriates – Immediate attention:
The Ministry of Labour has updated the list of professions prohibited for expatriates, affecting various skilled and semi-skilled roles across multiple sectors.
To view the entire list, click here.
As per our list, the professions will be Omanised starting from different dates. While most of them will be restricted starting from 1st September 2024, others will follow from 1 January 2025, 2026, and 2027, ensuring a phased implementation.
For those professions with immediate Omanisation conversion, we assume that employees’ contracts will continue until their employment visa expires.
Temporary Job Restrictions:
Effective from September 1, 2024, a six-month ban has been introduced on the issuance of new work permits for expatriates in certain unskilled professions. This temporary ban covers roles such as construction workers, cleaners, tailors, and electricians, among others. This new law primarily affects unskilled positions in the labor market.
To view the entire list, click here.
Expansion of Foreign Investment Activities (Trade Licenses) Restrictions:
The Ministry of Commerce, Industry, and Investment Promotion (MoCIIP) has issued a new resolution expanding the list of activities reserved exclusively for Omani investors. This amendment to Ministerial Decision No. 209/2020 adds 28 additional activities, bringing the total number of restricted activities to 123.
These new restrictions aim to encourage local entrepreneurship and ensure that activities related to national identity and heritage remain under Omani control. This is focused on Omani SMEs in handicrafts and traditional Omani, encouraging Omanis to setup their own SMEs. Therefore, as of now, these new restrictions are unlikely to affect international investors and trading companies.
To view the entire list, click here.
The decision would take effect the day after its publication, the date is not yet known.