Oman payroll and Social Protection Fund contributions: what employers pay (2026)
For an Omani employee, the employer pays 11% of monthly wage for pensions and the employee 7.5%, plus 1% employer contributions each for work injury, maternity and sick leave insurance and 0.5% from each side for employment security. Contributions are due by the 15th of the following month. Wages must be paid into a bank account in Oman, within 3 days of the end of the pay period.
Payroll and social protection in Oman
- Salaries into local bank accounts
- Fund contributions by the 15th
- Employee shares deducted correctly
Oman's sick leave insurance branch is now in force
What happened
The Social Protection Fund's insurance branch for sick leave and extraordinary leave came into force on 19 July 2026, three years after the Social Protection Law was issued, as Royal Decree 60/2025 set. Employers pay 1% of the insured worker's monthly wage for it.
What it means for you
Payroll for Omani staff carries one more employer contribution line. For insured workers the employer now pays the first 7 days of sick leave and the Fund pays from day 8. The branch covers non-Omani workers only in the categories the Fund's board decides.
Dates to know
- 19 July 2026Sick leave and extraordinary leave insurance branch in force
- 19 July 2027 at the latest9% savings system for non-Omani workers starts
- 19 July 2028Work injury insurance branch applies to non-Omani workers
Source: Oman News Agency. We check this page every week. Last checked .
Running payroll in Oman means meeting two sets of rules. The Labour Law issued by Royal Decree 53/2023 governs how and when wages are paid, what can be deducted and when final dues fall due. The Social Protection Law issued by Royal Decree 52/2023 governs the contributions an employer and its staff pay to the Social Protection Fund. It covers insurance branches for Omani workers, some branches for non-Omani workers, and the savings system that will replace the expatriate gratuity.
How must wages be paid in Oman?
By transfer into the worker's account at a local bank or financial institution licensed by the Central Bank of Oman. Under Article 87 the employer is only discharged once the wage reaches that account. Wages are paid in Omani rials unless another currency legally in use is agreed.
The burden of proving that wages were paid falls on the employer (Article 86). The Minister of Labour sets the minimum wage by decision after consulting employers and workers, with Council of Ministers approval (Article 88).
When must wages be paid in Oman?
On a working day, at least once a month for monthly-paid staff, and in every case within 3 days of the end of the period the wage is for. Other workers are paid weekly, or every two weeks or monthly if they agree in writing.
This is Article 90. When employment ends, all wages and dues are paid immediately, or within 7 days if the worker left of their own accord (Article 91). Late or missing wages carry fines per worker under Articles 147 and 148, and wages unpaid for more than two consecutive months let a worker leave without notice and keep all rights (Article 41).
What social insurance contributions are paid for Omani employees?
For old age, disability and death insurance, 11% of the monthly wage from the employer and 7.5% from the worker. The employer also pays 1% each for work injury, maternity leave and sick leave insurance. Employment security insurance is 0.5% from the employer and 0.5% from the worker.
The pension and work injury contributions are calculated on wages up to a ceiling of OMR 3,000 a month (Article 52 of the Social Protection Law). The pension branch is compulsory for all Omanis working in Oman, including on temporary, training and part-time contracts. The maternity and sick leave branches exclude part-time Omani workers, and employment security excludes part-time workers.
Our arithmetic: what does an Omani employee on OMR 1,000 a month cost in contributions?
OMR 145 a month from the employer and OMR 80 from the employee, by our arithmetic. The employer's share is 11% pension, 1% work injury, 1% maternity, 1% sick leave and 0.5% employment security, which is 14.5%. The employee's is 7.5% pension plus 0.5% employment security, which is 8%.
This is our own worked example using the rates in Articles 70, 90, 116, 123 and 128 of the Social Protection Law, on a wage below the OMR 3,000 ceiling. It assumes the employee is a full-time Omani covered by every branch. The employer deducts the employee's share from pay and sends both to the Fund.
When are contributions due and who sends them?
Within the first 15 days of the month after the month the contributions relate to. The employer is responsible for paying both its own share and the worker's share, and may deduct the worker's share from the wage.
This is Article 58 of the Social Protection Law. A merger, sale or other transfer of the business does not cancel what is owed to the Fund, and the successor becomes responsible for it (Article 60).
How does sick pay work now the sick leave branch is in force?
For workers covered by the branch, the employer pays the first 7 days of sick leave at full wage, and the Fund pays from day 8. The Fund pays 100% of wage to day 21, 75% to day 35, 50% to day 70 and 35% to day 182, the yearly maximum.
This is Article 124 of the Social Protection Law, in force since 19 July 2026. The Labour Law sets the same 182-day limit and the same percentages of gross wage for sick leave (Article 82). The branch is compulsory for Omanis working in Oman, except the self-employed, part-time workers and those working in other Gulf states or abroad.
What do employers pay for expatriate staff?
Today, mainly the Labour Law gratuity, which builds up at one basic wage a year. From a date the Social Protection Fund's board sets, no later than 19 July 2027, the employer pays 9% of the monthly basic wage into the savings system instead.
The sick leave and maternity branches apply to non-Omani workers only in the categories the Fund's board decides (Articles 121 and 127). Under Royal Decree 60/2025 the work injury branch applies to non-Omani workers from 19 July 2028. Our Oman end-of-service guide covers the gratuity and savings system in full.
What can be deducted from wages in Oman?
Only a quarter of the wage can be seized or assigned, for court-ordered maintenance or sums owed to the government or the employer. An employer may not deduct more than agreed to repay a loan or advance, or charge interest on it.
Articles 95 and 96 set these limits. Deductions for damage the worker caused on purpose are capped at 25% of the monthly gross wage, after an investigation (Article 68). Disciplinary fines cannot exceed 5 days' wage a month for a single offence (Article 65).
Key figures
| Detail | Value |
|---|---|
| Wage payment by bank | The employer is discharged only by transferring the wage to the worker's account at a local bank or financial institution licensed by the Central Bank of Oman. (source) |
| Pay timing | Monthly-paid staff at least once a month; every wage within 3 days of the end of its period. (source) |
| Pensions for Omanis | Old age, disability and death insurance: 11% of monthly wage from the employer and 7.5% from the worker. (source) |
| 1% employer branches | Work injury, maternity leave and sick leave insurance: 1% of monthly wage each, paid by the employer. (source) |
| Employment security | 0.5% of monthly wage from the employer and 0.5% from the worker, for Omani workers except the self-employed and part-time workers. (source) |
| Contribution wage ceiling | OMR 3,000 a month for the old age, disability and death branch and the work injury branch. (source) |
| Contribution deadline | Within the first 15 days of the following month, with the employer responsible for both shares. (source) |
| Sick leave branch | In force since 19 July 2026. The employer pays the first 7 days at full wage; the Fund pays from day 8 up to 182 days a year. (source) |
| Expatriate savings system | 9% of monthly basic wage, starting on a date the Fund's board sets and no later than 19 July 2027. (source) |
| Work injury cover for expatriates | The work injury branch applies to non-Omani workers from 19 July 2028. (source) |
| Wage deduction limit | No more than a quarter of the wage may be seized or assigned, for maintenance or sums owed to the government or the employer. (source) |
Frequently asked questions
Do expatriates pay social security in Oman?
Not into the pension branch, which covers Omanis. The sick leave and maternity branches apply to non-Omani workers only in categories the Fund's board decides, work injury cover applies to them from 19 July 2028, and the employer-funded 9% savings system starts no later than 19 July 2027.
What is the total employer contribution for an Omani employee?
14.5% of monthly wage for a full-time Omani covered by every branch, by our arithmetic: 11% pension, 1% each for work injury, maternity and sick leave, and 0.5% employment security. The pension and work injury parts stop at a wage of OMR 3,000 a month.
Can wages in Oman be paid in cash?
Article 87 of the Labour Law says the employer is discharged only by transferring the wage to the worker's account at a local bank or licensed financial institution. The Minister may set exceptions by decision.
Who pays sick pay in Oman now?
For workers covered by the sick leave insurance branch, the employer pays the first 7 days at full wage and the Social Protection Fund pays from day 8, on a falling scale up to 182 days a year.
Each of the six Gulf states writes its own labour law, its own end-of-service rules and its own quota for hiring citizens. When Teamed is your legal employer, we apply the right rules for the country each person works in and update your contracts, policies and payroll as the law changes, so you never have to read a statute to stay compliant.
