Oman to introduce mandatory savings scheme for expatriate workers from 2027

The Social Protection Fund, Oman, has announced a new mandatory savings scheme for expatriate workers that will take effect in 2027, as part of broader reforms aimed at strengthening financial security for the Sultanate’s large expatriate workforce.

Under the new system, employers will be required to allocate 9% of an expatriate employee’s basic salary to a structured savings programme. The accumulated funds will be set aside throughout the employee’s tenure and will be accessible when the worker leaves employment in Oman.

Officials say the initiative is designed to help expatriate employees build a financial cushion during their years of service in the country, ensuring they return home with savings accumulated through a regulated and transparent framework. 

Authorities indicated that the programme could eventually replace or complement the traditional end-of-service gratuity system, creating a more structured approach to employee financial entitlements.

Shabeb Al Busaidi, Deputy Executive President for Social Protection Affairs at the Social Protection Fund, said the scheme forms part of a broader package of reforms that will be introduced in phases between 2026 and 2028.

Among the upcoming initiatives is a sick-leave insurance programme scheduled for 2026, which will require contributions equivalent to 1% of an employee’s salary to provide income protection during periods of illness.

Authorities also plan to introduce work-injury insurance for expatriate workers in 2028, requiring a 1% salary contribution and offering compensation of up to RO3,000 for workplace-related injuries.

The Fund said the reforms are intended to modernise the country’s social protection framework, improve worker welfare, and enhance the resilience of Oman’s labour market.

According to the Social Protection Fund, the system currently covers 3.3 million beneficiaries, including more than 1.6 million insured individuals and 137,000 employers. Over the past year, 333,000 people interacted with the Fund’s services, highlighting the scale of its reach across the country.