Oman to introduce mandatory savings scheme for expatriate workers from 2027
9% of basic salary to be allocated to structured savings programme
Dubai: Oman will introduce a mandatory savings scheme for expatriate workers starting in 2027 as part of broader reforms aimed at strengthening financial security for the country’s large foreign workforce.
The initiative, announced by the Social Protection Fund, will require employers to allocate 9 per cent of an expatriate employee’s basic salary to a structured savings programme. The accumulated funds will be accessible to workers at the end of their employment in the Sultanate.
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The scheme is designed to provide expatriate employees with a long-term financial cushion, allowing them to build savings during their years of service before returning to their home countries.
Authorities said the system is expected to replace or complement the traditional end-of-service gratuity, creating a more transparent and regulated framework for 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 wider package of reforms that will be introduced in phases between 2026 and 2028.
Among the planned initiatives is a sick-leave insurance scheme in 2026, requiring contributions equivalent to 1 per cent of an employee’s salary to provide income protection during periods of illness.
A work-injury insurance programme is also scheduled for introduction in 2028, with a 1 per cent salary contribution and compensation of up to RO3,000 for workplace-related injuries.
The Social Protection Fund said the measures are intended to strengthen Oman’s social security system, improve worker welfare and enhance the resilience of the Sultanate’s labour market.
