According to Times of Oman, in its report published on July 2026, the Oman leave insurance system entered a new phase after the Social Protection Fund (SPF) introduced the operating framework for the Sick Leave and Extraordinary Leave Insurance Branch. The framework took effect on July 19 and establishes a structured system for sick leave and extraordinary leave benefits. It also creates a reimbursement process that supports employers while protecting employees during approved leave periods.
Oman Leave Insurance framework 2026 sets new benefit rules
The Oman leave insurance framework 2026 implements provisions of the Social Protection Law through a unified insurance system. It outlines how employers and insured workers contribute to the scheme, apply for benefits and receive compensation. The SPF will begin accepting applications through its electronic services portal from August 1, while the first benefit payments are expected in early August after employers complete their monthly contribution settlements.
The insurance branch aims to provide income support during temporary illness and exceptional family circumstances. At the same time, it helps employers recover eligible wage payments and insurance contributions made during approved leave.
Coverage expands across public and private sector employees
The new Oman leave insurance scheme applies to Omani employees working in the civil, military, security and private sectors, regardless of whether they hold permanent, temporary or training contracts. Retired Omanis who continue working also qualify for coverage. Eligible non-Omani employees working in government administrative units and private-sector establishments governed by the Labour Law are included as well.
However, the framework excludes self-employed Omanis, part-time workers, Omanis employed abroad or in GCC countries, and categories outside the Labour Law, including domestic workers.
Compensation system and employer contributions explained
Under Oman leave insurance, employers continue paying full wages during the first seven days of sick leave. From the eighth day onwards, the SPF provides compensation based on the employee’s final wage. Employees receive 100% of their wage from days 8 to 21, 75% from days 22 to 35, 50% from days 36 to 70, and 35% from days 71 to 182. The scheme limits sick leave compensation to 182 days in a calendar year.
The framework also introduces paid extraordinary leave for marriage, bereavement and accompanying close family members for medical treatment. In addition, employers will contribute 1% of employees’ full wages to finance the insurance branch, with no salary ceiling. The SPF will calculate benefits using wage information submitted by employers.
Oman Leave Insurance supports long term workplace protection
The Oman leave insurance framework ensures that approved leave counts as continuous service, allowing employees to retain their employment rights. Employers will continue verifying leave requests, while the SPF will review claims, request supporting information when required and recover any payments made without entitlement. The new framework strengthens Oman’s social protection system by creating a clear process that supports both employees and employers during extended leave periods.
