JULY 2025 – OMAN
SOCIAL PROTECTION FUND UPDATE
It is important that employers note the following:
Social Protection Fund – Insurance for sick and other leaves postponed
The Executive Regulations for Oman’s Social Protection Law, issued under Royal Decree No. 52/2023, were published in December 2023 in Official Gazette No. 1526. These regulations provide detailed guidance on the implementation of a comprehensive social security system.
The Social Protection Fund (SPF) Law introduced significant reforms, including new contributory and non-contributory benefits such as unemployment insurance, sickness benefits and a savings scheme for non-Omani workers. It also extended certain benefits – including maternity leave and work injury coverage – to foreign employees, and restructures retirement benefits for Omani nationals to enhance long-term sustainability.
Contribution rates and the salary cap were also amended under the new law for pension, disability, work injuries and diseases, and unemployment. These changes took effect on 1 January 2024, while the contribution to the maternity leave scheme became effective on 1 July 2024.
Importantly, the planned 1% employer contribution towards sickness and other leaves – originally scheduled to take effect on 1 July 2025 – has been postponed until further notice. This delay affects the implementation of sick and unusual leave insurance for employees covered under the law.
As a result, the current statutory contribution to the SPF remains at a total of 21.5% of the employee’s gross salary, with employers contributing 13.5% and employees contributing 8%.
Please note that the official notice from the SPF is not publicly available.
