Mandatory Sick Leave Insurance in Oman
for Expat Employees from 19 July 2026
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Oman continues to strengthen its social protection framework with a significant regulatory update that affects employers across both the public and private sectors. Effective 19 July 2026, eligible expatriate employees working in Oman will be covered under the Sick Leave and Extraordinary Leave Insurance scheme as part of the country’s expanding Social Protection Fund (SPF).
The new requirement follows Decision No. 13/2026, issued by H.E. Salim bin Nasser Al Aufi, Minister of Energy and Minerals and Chairman of the Social Protection Fund. The decision expands social insurance coverage for non-Omani employees and introduces additional employer obligations related to payroll compliance.
If your organization employs expatriate staff in Oman, understanding these changes is essential to ensure compliance, update payroll systems, and avoid potential regulatory issues.
In this guide, we explain what has changed, who is affected, employer contribution requirements, and how businesses can prepare.
What is Decision No. 13/2026?
Decision No. 13/2026 specifies the categories of non-Omani employees who will be covered under the Sick Leave and Extraordinary Leave Insurance scheme administered by the Social Protection Fund.
The decision applies to expatriate employees working in:
- Government administrative units
- Public legal entities
- Private sector companies governed by the Labour Law
The regulation forms part of Oman’s long-term strategy to strengthen employee welfare while improving workforce stability and social protection across the country.
What Changed from 19 July 2026?
Before 19 July 2026, employers contributed towards:
- Old Age, Disability & Death Insurance
- Job Security Fund
- Work Injuries & Illnesses Insurance
- Maternity Leave Insurance
Beginning 19 July 2026, employers must also contribute to the Sick Leave and Extraordinary Leave Insurance scheme for eligible expatriate employees.
The employee contribution remains unchanged.
Contribution Comparison
| Insurance Type (Before 19 July 2026) | Employer | Employee |
|---|---|---|
|
Old Age, Disability & Death |
11.0% |
7.5% |
|
Job Security Fund |
0.5% |
0.5% |
|
Work Injuries & Illnesses |
1.0% |
— |
|
Maternity Leave Insurance |
1.0% |
— |
|
Total Contribution |
13.5% |
8.0% |
| Insurance Type ((From 19 July 2026) | Employer | Employee |
|---|---|---|
|
Old Age, Disability & Death |
11.0% |
7.5% |
|
Job Security Fund |
0.5% |
0.5% |
|
Work Injuries & Illnesses |
1.0% |
— |
|
Maternity Leave Insurance |
1.0% |
— |
|
Sick Leave & Extraordinary Leave Insurance |
1.0% |
— |
|
Total Contribution |
14.5% |
8.0% |
Key Change
The only change introduced on 19 July 2026 is the addition of a 1% employer contribution towards Sick Leave and Extraordinary Leave Insurance. Employee contribution rates remain unchanged.
Who Must Register?
The insurance requirement applies to employers who engage eligible expatriate employees in Oman, including:
- Private companies
- SMEs
- Large corporations
- Government entities employing non-Omani workers
- Public legal institutions
Employers should ensure that their payroll systems and Social Protection Fund registrations reflect the new contribution requirements from the effective date.
Who is Covered?
The insurance scheme covers non-Omani employees working in:
- Private sector establishments governed by the Labour Law
- Government administrative units
- Public legal entities
Employers should review the official eligibility criteria issued by the Social Protection Fund to determine which employees fall within the scope of the scheme.
What is Sick Leave and Extraordinary Leave Insurance?
The Sick Leave and Extraordinary Leave Insurance scheme is designed to provide financial protection for eligible expatriate employees who are temporarily unable to work due to illness or other qualifying exceptional circumstances.
The objective of the scheme is to:
- Improve employee welfare
- Enhance financial security
- Support workforce stability
- Strengthen Oman’s social protection system
The specific benefits, eligibility requirements, and claim procedures are governed by the applicable regulations issued by the Social Protection Fund.
Employer Responsibilities
With the introduction of this insurance scheme, employers should take proactive steps to ensure compliance.
Key responsibilities include:
- Updating payroll contribution calculations
- Registering eligible expatriate employees with the Social Protection Fund
- Maintaining accurate employee records
- Monitoring future regulatory updates
- Ensuring timely payment of contributions
- Reviewing employment contracts where necessary
- Coordinating with payroll and HR teams
Businesses that fail to implement the required changes may face administrative challenges or regulatory consequences under applicable laws.
Employee Benefits
The expanded insurance framework aims to provide eligible expatriate employees with additional financial protection during periods when they cannot work due to qualifying illness or extraordinary circumstances.
Potential benefits include:
- Greater financial security
- Income support during eligible leave
- Enhanced social protection
- Improved employment stability
- Stronger employee confidence
Employees should refer to the official Social Protection Fund guidelines for detailed information on eligibility and benefits.
anaging ESG-related data.
Why This Matters for Businesses in Oman
Although the increase in employer contribution is relatively modest, businesses should not underestimate its operational impact.
The new requirement affects:
- Payroll processing
- HR compliance
- Budget planning
- Monthly employer contributions
- Employee registration
- Internal compliance procedures
Early preparation will help organizations avoid disruptions and ensure compliance from the effective date.
Common Mistakes Employers Should Avoid
Many businesses encounter compliance issues due to avoidable mistakes. Employers should avoid:
- Delaying payroll updates
- Failing to register eligible employees
- Miscalculating employer contributions
- Assuming employee deductions have increased
- Ignoring official Social Protection Fund guidance
- Waiting until after the implementation date to make changes
Working with experienced payroll and compliance professionals can help minimize these risks.
How Al Nuha International Can Help
Navigating employment law changes requires more than simply updating payroll software. Businesses must ensure that all compliance obligations are correctly implemented and documented.
Al Nuha International provides comprehensive support, including:
- Payroll Processing Services
- Social Protection Fund Registration
- HR Compliance Advisory
- Labour Law Compliance Support
- Accounting Services
- Tax Advisory
- Business Advisory
- Corporate Compliance Solutions
Our experienced professionals assist businesses across Oman in adapting to regulatory changes while ensuring payroll accuracy and operational efficiency.
Conclusion
The introduction of Mandatory Sick Leave and Extraordinary Leave Insurance for expatriate employees marks another important milestone in Oman’s evolving employment and social protection framework. From 19 July 2026, employers will need to incorporate an additional 1% employer contribution into their payroll processes while ensuring eligible expatriate employees are covered under the new insurance scheme.
Businesses that prepare early by updating payroll systems, reviewing compliance procedures, and staying informed of official Social Protection Fund requirements will be better positioned to meet their obligations efficiently.
Need Help with Payroll and Compliance in Oman?
If your business needs assistance with Social Protection Fund registration, payroll updates, labour law compliance, accounting, taxation, or HR advisory, the experts at Al Nuha International are here to help.
Our team provides practical, compliant, and business-focused solutions to help organizations adapt confidently to regulatory changes across Oman.
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