Oman's Savings System for Expats: What Changes in July 2027
From 19 July 2027, a monthly 9% employer contribution is due to replace end-of-service gratuity for non-Omani workers. What it means, and what happens to the gratuity you have already earned.
Oman is replacing end-of-service gratuity for non-Omani workers with a savings system, also called the provident fund. It is reported to take effect on 19 July 2027. Until then, the current gratuity rule continues to apply.
How it works
The system comes from the Social Protection Law, Royal Decree 52/2023.
- Contribution: your employer pays 9% of your basic wage every month (Article 139).
- Replaces gratuity: for the service it covers, the savings system takes the place of end-of-service gratuity (Article 137).
- Paying out: you receive your savings when your employment ends, unless you take another contract within the period set by the regulation (Article 143).
A simple example
On a basic wage of RO 500, the monthly contribution would be 9% of RO 500, which is RO 45, or RO 540 over a year. Compare that with the current gratuity of about one basic wage a year, RO 500.
What happens to gratuity you have already earned
Service before 19 July 2027 stays under the Labour Law. Reporting in November 2026 describes three ways to settle it:
- Your employer keeps it and pays you at the end of your service, at your basic wage at that time.
- Your employer pays it directly into your bank account when the system starts.
- Your employer deposits it with the Social Protection Fund.
An earlier report described only two options, so ask your employer which one it plans to use.
What to do now
- Check your basic wage. Both gratuity and the 9% are based on it, not your total pay.
- Ask your employer in writing how it will settle your earlier service.
- Keep your contracts and payslips. They prove your start date and wage.
The start date has moved before: a 2024 report expected the system by July 2026. We could not find the decision that sets the 2027 date, so watch for official notices from the Social Protection Fund. This is general information, not legal advice.
Frequently asked questions
When does the savings system start?
It is reported to take effect on 19 July 2027. An earlier report expected it by July 2026, so check for any further announcement.
Who pays the 9%?
The employer pays 9% of each non-Omani worker's basic wage every month, under the Social Protection Law.
What happens to the gratuity I have already earned?
Service before the start date stays covered by the Labour Law. It may be kept by the employer and paid at the end of your service, paid directly to you, or deposited with the Social Protection Fund.
When do I get the savings?
Under Article 143, savings are paid when your employment ends, unless you take another contract within the period the regulation sets.