Oman’s Social Protection Fund (SPF) has set July 19, 2027, as the start of a savings plan that shifts covered non-Omani workers’ post-launch gratuity entitlement to monthly employer contributions.
The Social Protection Law sets the contribution at 9% of a covered worker’s basic monthly wage. Oman News Agency (ONA) said employers are responsible for the payment, which is not deducted from workers’ wages.
ONA said the scheme applies to non-Omani workers in units of the State Administrative Apparatus and private-sector workplaces covered by the Labour Law. Workers outside that law, including domestic workers, are excluded.
The plan replaces end-of-service gratuity for work performed from its start date; the two arrangements do not apply to the same period. Gratuity accumulated before July 19, 2027, remains separate. ONA said employers may keep that amount and pay it when employment ends, pay it to the worker when the scheme begins, or transfer it to the worker’s SPF account.
The law establishes a defined-contribution system, with workers’ savings made up of employer payments and investment returns. When eligible for payment under the law, a saver may request a lump sum or annual or monthly installments, subject to the regulation.
ONA said placing contributions in the fund could help preserve workers’ accumulated savings if an employer faces financial distress. It also reported that regular payments may help smaller businesses plan for end-of-service costs, which otherwise build up until employment ends.
The SPF’s announced implementation date is July 19, 2027. ONA has said the system draws on international and regional practices, without identifying a specific model.
