Monday, August 03, 2026

Oman News

Oman activates new labour subscription payment mechanism for employers  

The Ministry of Labour has announced that the new subscription payment mechanism for labour insurance is now operational.

TAS News Service

info@thearabianstories.com

Monday, August 3, 2026

MUSCAT: Under the mechanism, employers are required to pay a monthly subscription equivalent to 1 percent of the employee’s total salary, with no maximum salary cap. The contribution is calculated on a daily basis and applies to both Omani and non-Omani employees.

The Ministry said the Social Protection Fund will issue a monthly payment notice at the end of each month, detailing the employer’s contributions, contributions for all employees, and payments due across all branches of social insurance.

The payment notice will also include contributions for the sick leave and extraordinary leave insurance branch, which came into effect on July 19, 2026.

Employers are responsible for ensuring that all employee information – including details for both Omani and expatriate workers – is accurate and up to date with the fund. They must also update wage information promptly and settle contributions within the prescribed deadlines.

According to the Ministry, the monthly invoice is generated based on the employee and wage data registered with the Social Protection Fund, making accurate record-keeping essential for timely and correct contribution payments.

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