Monday 16 / February / 2026
Muscat: In a bold move to accelerate national employment, the Sultanate of Oman’s Ministry of Labour has officially implemented a tiered fee structure for expatriate work permits. Under the new regulations, companies that achieve their Omanisation targets are eligible for significant financial incentives, while those failing to meet these benchmarks will face a doubling of their standard work permit fees.
The tiered incentive system:
Green Category (Compliant Firms): Companies that meet or exceed their mandated Omanisation rates will receive a 30 percent discount on expatriate work permit and practice licence fees.
Non-Compliant Firms: Businesses that fall short of national employment targets will see their work permit fees doubled, a measure intended to make the hiring of local talent more economically attractive.
Extended Validity and Flexibility
Beyond the fee changes, the new framework extends the validity of work practice licences for non-Omani workers from 15 to 24 months, aligning them with standard residency permits. Additionally, the Ministry now allows employers to upgrade a worker’s professional category on an existing licence by simply paying the fee difference, rather than applying for a completely new permit—a move aimed at reducing administrative bureaucracy.
Al Saadi noted that these strategic measures aim to align private sector needs with the national goal of empowering the local workforce. By providing both a "carrot" (the 30% discount) and a "stick" (the fee doubling), the government expects a marked shift in hiring patterns as we head into late 2026. The fees stipulated in Appendices (1) and (4) attached to these regulations shall be reduced by thirty percent (30%) if the employer adheres to the prescribed Omanization quotas, and doubled if the employer fails to do so. The provisions of the first
