By Pakistan’s Bureau of Emigration and Overseas Employment has issued labour rights guidelines for Pakistani workers employed in Oman, confirming that the sultanate’s Labour Law guarantees at least 30 days of paid annual leave for employees, including expatriates. The guidelines, reported by ARY News on 20 October 2026, explain the provisions of Royal Decree No. 53/2023, which governs employment relationships in Oman.
Under Article 78 of the law, employees become eligible to take annual leave after completing at least six months of service with their employer. Workers may carry forward up to 30 days of unused leave, and this limit can be exceeded where work requirements prevent leave from being taken. Annual leave periods may also be combined by mutual agreement between employer and employee. For non-Omani workers, the law includes a specific entitlement: return air tickets during annual leave to travel to their home country and back to the workplace after the leave period ends.
What the law says about leave scheduling and payment
Article 81 of Royal Decree No. 53/2023 sets out further rules governing how annual leave operates in practice. Employers may divide annual leave into separate periods according to operational requirements, though this provision does not apply to young workers. Where work demands require it, an employer may postpone an employee’s annual leave for up to six months. However, every employee must take at least 30 days of annual leave once every two years, preventing indefinite deferral.
Employees cannot waive their right to annual leave. The law does allow employers to compensate workers financially for unused annual leave in certain circumstances, calculated based on the employee’s basic wage, provided the employee gives written consent. Where employment ends before a worker has used accumulated annual leave, the employer must pay compensation equivalent to the employee’s full wage for the outstanding leave days. This distinction between basic wage for voluntary cash-out during employment and full wage on termination is significant for payroll teams.
What the 30 days means for expatriate workers
The 30-day minimum applies to expatriates as well as Omani nationals, and the inclusion of return air tickets makes the expat provision materially different from the domestic one. For HR and payroll professionals, the key practical question is whether the 30 days are calendar days or working days. The text of the law as reported does not clarify this distinction, and employers should confirm the interpretation with the Ministry of Labour or through legal counsel before applying it to payroll calculations.
The law does not state whether official public holidays are counted within the 30 days or are additional. Papaya Global’s country-level payroll guidance lists a separate public holidays calendar for Oman, suggesting holidays are tracked independently, but the interaction with annual leave under Royal Decree No. 53/2023 is not explicitly set out in the available research. Payroll teams should treat public holidays as a separate category unless their legal advice confirms otherwise.
Practical implications for HR and payroll teams
The six-month qualifying period before leave can be taken does not mean leave does not accrue during that time. The law’s structure implies continuous accrual, with the six-month mark acting as the point at which an employee may first take leave. Employers should track accrual from day one of employment, even where the employee cannot yet use the entitlement.
The carry-forward rule creates a payroll liability that must be tracked accurately. Up to 30 days may be carried forward, and where work requirements prevent leave, that limit may be exceeded. This means an employee could theoretically accumulate 60 days of leave entitlement across two years. The requirement that every employee take at least 30 days every two years acts as a backstop against indefinite accumulation, but employers should still monitor balances actively.
On termination, the payment obligation is calculated on full wage, not basic wage. This is a common area of dispute in expatriate employment, where basic salary often represents only a portion of total compensation, with housing and transport allowances making up the remainder. HR teams should ensure termination calculations use the correct wage basis.
Where workers can seek help
The General Federation of Oman Workers (GFOW) provides legal education and legal support services to workers in Oman. The federation operates electronic services through which workers can request legal awareness sessions or legal consultations. Its union distribution data shows significant coverage in Muscat with 165 unions, followed by North Batinah with 72, with smaller numbers across other governorates. Workers facing disputes over annual leave entitlement or payment can approach GFOW for guidance, though the federation’s services are oriented toward union members and workers covered by its affiliated unions.
Employers operating in sectors where the Minister of Labour has specified alternative leave arrangements should verify whether those sector-specific rules apply. The law permits such alternatives only where they offer greater benefits to workers, so any sector scheme must meet or exceed the statutory 30-day minimum.
Sources: ARY News
Photo: Labour Day 2009 - annual leave (3982036304) by New Zealand Tertiary Education Union from New Zealand, CC BY-SA 2.0
