Oman payroll: Social Protection Fund contributions and expatriate end of service

Since 2024 Oman's social insurance runs through the Social Protection Fund (SPF), under the Social Protection Law (Royal Decree 52/2023). Omanis are covered for pension, work injury and job security; every employee, Omani or not, is covered for maternity leave.

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Omani employees

Each row is employee / employer. The old-age branch is worked on the wage up to OMR 3,000 a month; maternity and sick leave are worked on the full wage, with no ceiling.

When the sick-leave branch starts is not settled on the SPF's own pages: its rates table gives 1 July 2025, its sick-leave page two years after the law came into effect, and Royal Decree 60/2025 has since put back parts of the law. Check the date with the SPF before you rely on it.

Old age, disability and death (from 1 January 2024)7.5 % / 11 %
Work injury (from 1 January 2024)none / 1 %
Job security (from 1 January 2024)0.5 % / 0.5 %
Maternity leave (from 19 July 2024)none / 1 %
Sick and other leave (start date: see below)none / 1 %
Total once sick leave applies: employee / employer8 % / 14.5 %

Expatriate employees

The employer pays 1 % of the full wage for maternity leave; nothing is deducted from the employee. Which expatriates the sick-leave branch will cover is set by the SPF's board (Decision R/2026/13), and work injury cover for expatriates was put back by Royal Decree 60/2025: check both with the SPF.

When contributions are due

A month's contributions are paid within the first fifteen days of the following month, through the SPF's employer services. Late payment carries additional amounts set by the law and its Executive Regulation; check the rate that applies to you with the SPF.

Expatriate end of service

Under article 61 of the 2023 Labour Law, a worker the Social Protection Law does not cover earns a gratuity of at least a month's basic wage for each year of service, in proportion for part of a year, at the last basic wage. Service that began before the law counts towards the period. Three years on a basic wage of OMR 1,000.000 come to OMR 3,000.000. How earlier years are valued in a final settlement is worth confirming with the Ministry of Labour.

The savings scheme to come

The SPF plans a compulsory savings scheme for expatriates, 9 % of the basic wage paid by the employer, to replace the gratuity; in March 2026 it said it aims to launch it during 2027. Royal Decree 60/2025 lets the SPF's board set the date, within four years. Until it starts, the employer pays the gratuity.

How Aqid ERP handles it

Aqid ERP's payroll applies each SPF branch for the month by its payday and accrues the gratuity monthly. It starts the sick-leave branch on 19 July 2026 and, in a final settlement, values service before 31 July 2023 under the old law's rule; both are settings, and they are among the dates to confirm with the SPF and the Ministry.

Questions

What are the SPF rates for Omanis?

7.5 % for the employee and 11 % for the employer for old age, disability and death, plus job security, work injury and maternity on the employer: 8 % and 14.5 % once sick leave applies.

Do expatriates contribute to the SPF?

The employer pays 1 % of the full wage for their maternity leave. The employee pays nothing.

When are SPF contributions due?

Within the first fifteen days of the month after the one they cover.

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