Oman Extends Compulsory Sick Leave Insurance to Expat Workers from July 20 – A Major Step in Expanding Social Protection

Oman extends compulsory sick leave insurance to expat workers from July 20, 2026

Muscat, 29 June 2026 — Oman has announced the extension of compulsory sick leave and extraordinary leave insurance coverage to expatriate workers in both the public and private sectors, effective July 20, 2026.

The decision, issued by the Social Protection Fund (SPF) under Decision No. 13/2026, aims to broaden social protection and ensure greater equity in the Sultanate’s workforce.

Key Details of the New Insurance Coverage

• Who It Covers: All expatriate employees working in government entities, public legal bodies, and private sector establishments governed by Oman’s Labour Law.

• What It Includes: Mandatory insurance for sick leave and extraordinary leave, previously available only to Omani workers.

• Effective Date: July 20, 2026.

The scheme has been operational for Omani nationals since July 2019, covering employees on temporary and training contracts as well as retirees. The extension to expatriates marks a significant widening of social protection in Oman.

Why This Matters for Expat Workers and Employers

This move is expected to:

• Provide greater financial security for foreign workers during periods of illness or authorised leave.

• Encourage better retention of skilled expatriate talent.

• Align Oman’s labour policies with international standards on worker welfare.

Employers in both public and private sectors will now be required to ensure their expatriate staff are enrolled in the scheme.

Related Reading: This development comes alongside recent improvements in residency options for property owners in Oman. For more details, see our article on Oman Property Owner Residency Permits 2026.

Broader Context in the GCC

Oman’s decision reflects a growing regional trend toward enhancing social protections for expatriate workers. Neighbouring countries are also streamlining processes for foreign labour.

For example, Bahrain has significantly reduced processing times for domestic worker permits to just one day. Read our full report here: Bahrain Domestic Worker Permit Processing Time Reduced to 1 Day

What Employers and Expat Workers Should Do Now

• Employers should prepare to enrol their expatriate staff in the new insurance scheme before the July 20 deadline.

• Expatriate workers are advised to check with their employers regarding enrolment and understand their entitlements under the scheme.

The Social Protection Fund has emphasised that the extension aims to create a more inclusive and fair labour market in Oman.

For the latest Oman labour law updates, expat worker rights news, and 2026 GCC immigration developments, visit: visasupdate.com/news

This latest reform by Oman highlights the Sultanate’s commitment to modernising its labour policies and extending social protections to its large expatriate workforce. The move is expected to improve worker welfare and strengthen Oman’s appeal as a destination for foreign talent.