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Oman News

Oman set to implement ‘savings system’ for expat workers

The newly issued Royal Decree stipulates that the savings system for expatriate workers, which was set to come into effect in 2026, will now be implemented on July 19, 2027

TAS News Service

info@thearabianstories.com

Sunday, July 13, 2025

MUSCAT – His Majesty Sultan Haitham bin Tarik has issued Royal Decree No. 60/2025 amending certain provisions of Royal Decree No. 52/2023 concerning the promulgation of the Social Protection Law.
The decree stipulates the postponement of the implementation of the Savings System, which is financed as 9 percent of the basic wage of the expatriate insured person per month. It will now be implemented from 2027, instead of 2026.

These changes are seen as part of the government’s broader efforts to ensure the sustainability, readiness, and effectiveness of Oman’s social protection framework, in line with its long-term social development and economic diversification goals.

It is pertinent to note that the Savings Systems under the Social Protection Law replaces the end-of-service gratuity for expatriate employees. This system is mandatory for non-Omani workers (Article 136) and requires their contribution of 9 percent of the basic salary.

The new decree has also revised implementation dates of other provisions as follows:

  • The Work Injuries and Occupational Diseases Insurance Branch will be implemented for expatriate workers in July 2028, instead of 2026.
  • The Sick Leave and Unusual Leave Insurance Branch will be implemented in July 2026 instead of the current year 2025.
  • Savings system for expatriate workers to come into effect on July 19, 2027
    The extensions in the timeframe are expected to provide adequate time for concerned parties to meet the responsibilities.

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