New SPF Regulation on Work Injuries and Occupational Diseases: Key Impacts for Businesses in Oman
Muscat: The Social Protection Fund has issued Ministerial Decision No. 1/2026, which approves new regulations governing work injuries and occupational diseases. This step is part of ongoing efforts to enhance social insurance coverage across the Sultanate of Oman.
Under the new regulation, employers are required to contribute monthly to the Work Injuries and Occupational Diseases Insurance Branch. The contribution is set at 1 percent of the insured employee’s wage, with the full financial responsibility resting on the employer.
The regulation applies mandatorily to all Omani workers in the Sultanate, encompassing various employment types such as permanent contracts, temporary contracts, training contracts, part-time work, and even retired employees who continue working.
The Social Protection Fund emphasized that this decision aims to improve worker protection, ensure financial stability in cases of workplace injuries or occupational diseases, and strengthen social protection in alignment with the country’s national priorities.
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The new regulation mandating employer contributions for work injury and occupational disease insurance raises operational costs for businesses but also strengthens worker protection, potentially improving employee retention and morale. Smart investors and entrepreneurs should consider the long-term benefits of enhanced social insurance frameworks as a foundation for a more stable and productive workforce, while preparing for the short-term financial impact of increased employer liabilities.
