MUSCAT: Oman will introduce a mandatory savings scheme for expatriate workers from 2027, as part of new reforms announced by the Social Protection Fund aimed at strengthening financial security for the country’s large expatriate workforce.

Under the new system, 9% of an expatriate employee’s basic salary will be allocated towards a mandatory savings programme, creating a structured financial reserve that workers can access at the end of their employment.

The initiative forms part of a broader effort by the Sultanate to modernise its social protection framework and ensure better financial planning for expatriate employees working in Oman.

The savings programme is designed to provide expatriates with a long-term financial cushion, helping them accumulate funds during their years of service in the country. The savings will effectively serve as a structured financial benefit when workers complete their employment contracts or return to their home countries.

The scheme is expected to replace or complement traditional end-of-service benefits, creating a more transparent and regulated system for employee financial entitlements.

The announcement was made by Shabeb Al-Busaidi, Deputy Executive President for Social Protection Affairs, as part of a broader package of reforms by the Social Protection Fund, which is rolling out new insurance and protection schemes for workers in phases between 2026 and 2028.

Among the initiatives is the introduction of sick leave insurance in 2026, which will provide income protection for employees during periods of illness, with a contribution equivalent to 1% of the employee’s salary.

In 2028, authorities also plan to introduce work injury insurance for expatriate workers, requiring a 1% contribution of salary and offering compensation of up to RO 3,000 for workplace-related injuries.

The Social Protection Fund said the programmes aim to strengthen the Sultanate’s social security system while supporting worker welfare and improving the overall resilience of Oman’s labour market.