According to Muscat Daily, in its report “Employers to bear 1% contribution for sick leave insurance: SPF,” published in July 2026, the Social Protection Fund (SPF) confirmed that Oman sick leave insurance will not reduce employees’ salaries, as the additional 1% contribution will be paid entirely by employers under the new insurance scheme.
Oman Sick Leave Insurance protects employee salaries
The SPF clarified that employees covered under the sick leave and extraordinary leave insurance scheme will not have the additional contribution deducted from their wages. Malik bin Salim bin Suleiman Al Harthy, Director General of Entitlements at the SPF, said the 1% contribution is solely the responsibility of employers. Therefore, the launch of the new insurance scheme will not affect the monthly income of insured employees.
The clarification came after employees raised questions about whether the introduction of the insurance scheme would reduce their salaries. In response, the SPF confirmed that workers will continue to receive their full wages without any deduction related to the additional contribution. This announcement gives employees and employers greater clarity as they implement the new system.
Oman employer contribution 1% explained
Under the current social protection system, employers contribute 13.5% of an employee’s insured wage. However, with the introduction of the Oman sick leave insurance scheme, the employer contribution will increase by 1 percentage point, bringing the total contribution to 14.5%.
According to the SPF, this additional contribution is intended to strengthen social protection benefits while ensuring employees do not bear any extra financial responsibility. At the same time, the updated contribution structure expands insurance coverage and supports a stronger safety net for workers across the country. The clarification also helps employers better understand their obligations under the revised system.
Oman Sick Leave Insurance supports workers and employers
The Oman sick leave insurance scheme introduces a reimbursement mechanism that supports both employees and employers. Under this arrangement, employers will initially pay compensation to eligible employees during approved periods of sick leave and extraordinary leave. Afterwards, the SPF will reimburse those payments in accordance with the provisions of the insurance scheme.
As a result, eligible employees continue to receive financial support during periods of leave without disruption. Meanwhile, employers receive reimbursement for payments made under the scheme, creating a balanced system that protects workers while supporting business compliance. This approach also contributes to a more sustainable and efficient social protection framework.
SPF Reinforces social protection reforms
The SPF encouraged employers and insured individuals to rely on official sources for accurate information regarding the implementation of the Oman sick leave insurance scheme and employer contribution requirements. Clear communication, the fund said, will help ensure the smooth adoption of the new insurance mechanism across workplaces.
The clarification forms part of Oman’s broader efforts to strengthen its social protection system and improve income security for workers. By expanding insurance coverage and introducing new benefits, the country continues to support labour market reforms that enhance employee welfare while providing employers with a structured framework for managing eligible leave benefits. Through these measures, Oman is building a more comprehensive social protection system that supports both workforce stability and long-term economic development.
