Labor law Decree No. 35/2005 of Oman explains the labor rights of workers in all aspects and everything the employee and employer must know about the work contract. Before getting an employee on board, the human resource consulting department of the company must brief the rights and obligations of the employee at the time of orientation. Various HR outsourcing companies provide HR solutions to companies that choose to outsource employees within or outside the company.
These HR outsourcing companies usually take responsibility for the laws and regulations of the respective country, guiding the hiring company to keep labor laws in order.
Concerning the labor law of Oman, salaries, overtime, end-of-employment benefits, and leaves are defined in detail for the employees. The clause for Omani overtime law is well discussed in Law Decree No. 35/2005 from Article 70 to Article 72.
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What is Overtime Pay in Oman?
In employment, the worker is paid for the number of hours he serves on the job. The salary of a worker is usually calculated at the rate of working hours. However, in many contracts, there is an agreement to pay an increased amount of salary upon working for more than a decided number of hours. The increased amount in salary that is paid due to extended hours of work is known as overtime. To understand overtime and salary distribution in case of prolonged working hours, it is always a great idea to contact a human resource consulting company and have expert HR solutions.
Working Hours in Oman
Under the labor law of Oman, article 68 states that normal working hours for an employee should be 8 hours per day or 48 hours per week. According to the law, there is a slot of 1 hour every day which should be spent as a break. This break can be utilized for meals or employees’ rest. There are various professions in which the workers usually work for 10 to 12 hours such as hotel workers, taxi drivers, and security guards. The law states to consider every extra hour than 8 hours on the job as overtime and must be added to the salary.
What Are the Types of Overtime in Oman Labor Law?
In the Omani Labor Law, two articles define two different types of calculations for overtime.
- Regular Daytime Overtime: As per Article 68, the regular working hours for a worker are 8 hours per day or 48 hours per week. The no. of hours that exceed 8 hours per day is considered to be overtime. The rate is an increase of 25% of his salary for regular overtime.
- Night Shift Overtime: If a worker is asked to work from 2100 HRS to 0400 HRS other than regular working hours of the day, it is then considered as night shift overtime. For the night shift over time, an increased rate of 50% of the salary should be paid.
Overtime Calculation in Oman
Here are the examples of overtime calculation in Oman as per the labor law.
In the Case of Regular Day Shift Overtime
Let us assume the gross salary of a worker to be 500 OMR
Salary per Day = 500 x 12/365 = 16.43 per day
Salary per Hour = 19.72/8 = 2.05 OMR
Total Overtime = Total No. of Overtime hours x Salary per Hour x 1.25 (25% increase in salary)
As an example, if the employee serves 4 extra hours of overtime the calculation would be;
4 x 2.05 x 1.25 = 10.25 OMR per hour overtime
In the Case of Night Shift Overtime
Let us assume the gross salary of a worker to be 500 OMR
Salary per Day = 500 x 12/365 = 16.43 per day
Salary per Hour = 19.72/8 = 2.05 OMR
Total Overtime = Total No. of Overtime hours x Salary per Hour x 1.5 (50% increase in salary)
As an example, if the employee serves 2 extra hours of overtime the calculation would be;
2 x 2.05 x 1.5 = 6.15 OMR per hour overtime
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