Oman makes hard hiring of expats to promote local skills

Oman Labor ministry has released a new fee structure that employers have to follow as the Gulf country pushes through its Omanization plan in all work sectors.
Per the new structure, Times of Oman reports, hiring an expatriate in a top position under the new structure will cost companies $5,198 (OMR2,001), $2,600 for mid-levels, and $1,561 for technical and skilled workers.
The Gulf country has rolled out Omanization of employments program with an aim of to create employment for local skills.
“We have worked previously to understand the reality and challenges that exist presently in our labour market,” said Dr. Mahad bin Said Ba’owain, the Minister of Labour. “This also includes processes related to the training, operation, recruitment, and management operations in the country.
“We have therefore understood that our current efforts will not end in a short while, but we have now identified and recognized the problems that exist currently,” he added. “Through this, we were able to come up with an action plan that will be implemented during the year 2021.”
The new fees also affect several others sectors. An expatriate fisherman will cost companies almost $938, while for other industries the fee will increase with the number of foreign employees in each position.
However authorities have exempted owners of small and medium enterprises (SMEs) operating under the Public Authority for SME Development (Riyada) and insured by the Public Authority for Social Insurance (PASI).
SMEs can benefit from these regulations for up to two years from the time of their establishment, Dr Mahad reportedly said.

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