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Ministry of Labour doubles fees  for firms failing Omanisation targets

Monday, 16 February 2026 20:58

Muscat – Companies that fail to meet Omanisation targets will now pay double the standard work licence fees, under new regulations introduced by the Ministry of Labour to tighten compliance and boost national employment. The revised framework, issued under Ministerial Decision No 602/2025, came into force at the end of January. It links visa and work […]

Muscat – Companies that fail to meet Omanisation targets will now pay double the standard work licence fees, under new regulations introduced by the Ministry of Labour to tighten compliance and boost national employment.

The revised framework, issued under Ministerial Decision No 602/2025, came into force at the end of January. It links visa and work permit fees directly to a company’s performance in meeting prescribed Omanisation percentages.

Under the system, firms that comply with national employment quotas will receive a 30% reduction in visa and licensing fees. Establishments that fail to meet the targets will face fees at twice the standard rate.

Ammar bin Salem al Saadi, Director General of the Directorate General of Labour and official spokesperson for the labour affairs sector, said the amendments form part of a broader policy aimed at regulating the labour market and increasing opportunities for Omani jobseekers.

He said the decision builds on earlier measures designed to balance private sector workforce demand with the priority of employing nationals, amid shifts in labour market dynamics.

The new mechanism classifies companies into three categories — green, yellow and red — based on compliance indicators. Green-category firms qualify for a 30% discount on licensing fees, while those placed in yellow and red categories are subject to doubled charges.

The system applies to establishments rather than individuals. Licensing approvals are tied to verified business needs and measurable compliance performance.

All procedures are integrated into an electronic licensing platform. Companies that meet required Omanisation levels automatically benefit from applicable incentives without additional administrative steps.

Al Saadi said the classification model is intended to strengthen governance, reduce the gap between licensed activities and actual operations, and limit reliance on low-skilled labour. He added that compliant firms would gain a competitive advantage through lower operating costs.

Establishments holding the Riyada card will receive facilitations for a specified number of licences before higher fees apply. Their classification status will also influence eligibility for green-category incentives.

The ministry has urged business owners to use support programmes, including training linked to employment, wage support schemes and on-the-job training initiatives, to meet Omanisation thresholds.

Officials said the regulatory update aims to promote labour market sustainability, expand employment opportunities for citizens and align private sector growth with national workforce development priorities.

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