Oman Implements Compulsory Sick Leave Insurance for Expatriate Workers – 1% Payroll Contribution Effective July 19
- Xavi
- 2 days ago
- 3 min read
MUSCAT — July 18, 2026 — Oman has officially activated mandatory sick leave and extraordinary leave insurance coverage for expatriate workers across both public and private sectors, with the new scheme taking effect from July 19, 2026 .
The initiative, introduced through the Social Protection Fund's Decision No. 13/2026 and originally announced on June 29, represents one of the most significant expansions of worker protection in the Sultanate's recent history . The insurance branch, which has been available to Omani nationals since July 2019, now extends social security coverage to the country's large expatriate workforce .
Key Details at a Glance
Feature | Details |
Effective Date | July 19, 2026 (implementation begins) |
Coverage | Expatriate employees in public and private sectors |
Employer Contribution | 1% of each covered worker's contribution wage |
Employee Contribution | None – cost fully borne by employers |
Maximum Sick Leave Coverage | 182 days per year |
Exclusions | Domestic workers (housemaids, drivers) |
What the New Insurance Covers
Sick Leave Compensation Structure
Under the new scheme, sick leave is covered for up to 182 days in a calendar year, with compensation calculated as follows :
Days | Compensation Rate |
1–7 days | 100% (employer pays) |
8–21 days | 100% (insurance covers) |
22–35 days | 75% |
36–70 days | 50% |
71–182 days | 35% |
Other Leave Types Covered
The insurance sector also covers certain types of other leave, including:
Marriage leave
Bereavement leave
Accompanying relatives for medical treatment
Continuity of Insurance Record
In certain cases, the scheme also covers specified old-age, disability, and death insurance contributions during approved leave periods, helping ensure continuity in an employee's insurance record .
Impact on Employers
Payroll Contribution
The most immediate change for businesses is the addition of a 1% payroll-related contribution, paid entirely by employers. Employees will not make any separate contributions to this insurance branch .
Reimbursement Process
Employers remain responsible for paying workers during eligible leave periods before submitting compensation claims electronically to the Social Protection Fund .
Key Steps:
The employer provides the worker's salary or stipend during their leave
Employer submits claims electronically to the Social Protection Fund
Fund reimburses the employer for eligible amounts
Legislative Timeline
The rollout follows a three-year legislative process that began with:
Royal Decree No. 52/2023 – Promulgation of the Social Protection Law
Royal Decree No. 60/2025 – Extended implementation period by one year
July 19, 2026 – Implementation date
Employer Obligations
Action | Details |
Enrolment | Ensure all eligible expatriate staff are enrolled in the scheme |
Payroll Updates | Calculate and apply the 1% contribution |
Record-Keeping | Maintain employee records, contribution-wage data, and medical evidence |
Claim Submission | Submit reimbursement claims electronically |
Compliance Deadline | July 20, 2026 |
Who Is Covered and Who Is Excluded
Covered Workers
The scheme applies to :
Expatriate employees in units of the State Administrative Apparatus
Employees of other public legal entities
Workers in private-sector establishments governed by the Labour Law
Excluded Workers
The provisions do not apply to expatriate workers outside the scope of the Labour Law, including:
Domestic workers (housemaids, drivers, household employees)
Related Developments
Oman Introduces New Property Owner Residency Permits 2026 — Easier long-term stay for foreign investors and families.
Bahrain Domestic Worker Permit Processing Time Reduced to 1 Day — Faster processing for domestic worker permits.
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