Compensation Benefits
Oman to extend compulsory sick leave insurance to expatriate workers from July 20

With the latest amendment, eligible expats working in government entities and Labour Law-covered private sector organisations will also be included in the mandatory insurance programme.
The Sultanate of Oman is making sick leave and extraordinary leave insurance mandatory for expatriate employees in both the public and private sectors from July 20, expanding its social protection framework to cover a larger share of the country's workforce.
The new requirement comes under Social Protection Fund (SPF) Decision No. 13/2026, which mandates participation in the insurance scheme for expatriate workers employed by State Administrative Apparatus units, other public legal entities, and private sector establishments governed by the Labour Law.
According to the Social Protection Fund, the measure is aimed at broadening social protection coverage and extending employment benefits to expatriate workers, who make up a significant portion of Oman's labour force.
The sick leave and extraordinary leave insurance scheme has been in place for Omani nationals since July 2019, providing coverage for employees in both the public and private sectors, including workers on temporary and training contracts as well as retirees.
With the latest amendment, eligible expatriate employees working in government entities and Labour Law-covered private sector organisations will also be included in the mandatory insurance programme.
However, the provisions will not apply to expatriate workers in Oman who fall outside the scope of the Labour Law, including domestic workers.
The expansion reflects Oman's ongoing efforts to strengthen its social protection system and provide more comprehensive welfare safeguards for employees across the Sultanate.
By extending compulsory insurance to expatriate workers, the government aims to create a more inclusive labour protection framework while aligning employment benefits across both national and foreign workforces.
The expansion comes as Oman prepares to roll out a mandatory savings scheme for expatriate workers in 2027, requiring employers to contribute 9% of employees' basic salaries to a regulated savings programme. The initiative is part of a wider package of social protection reforms, including new sick leave and work-injury insurance measures, to strengthen financial security and worker welfare across the Sultanate.
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