Oman’s SPF Social Security Employer Registration and Contributions

Oman’s Social Protection Fund (SPF) brings together all the social insurance and pension schemes under one roof, and requires employers to register digitally, report wages, and pay monthly contributions for all workers.

Oman’s Social Protection Law (Royal Decree No. 52/2023) unified all pension and insurance programs under the SPF. It provides coverage for a range of beneficiaries from old age, disability, job security, maternity to sick leave.

Employer registration and compliance process

Registration requirements

Employers register with the SPF using its electronic portal. The registration process is fully automated through data integration between the SPF and other government databases of the Ministry of Commerce, Industry, and Investment Promotion (MoCIIP) and the Ministry of Labor (MoL). The authorized person responsible for completing the registration is one of the following:

• The employer or owner of the establishment;
• The official signatory listed in the commercial registry at the Ministry of Commerce; or
• A representative formally designated in the SPF system by the employer.

Portal access and authentication

Access to the SPF e-portal requires Public Key Infrastructure (PKI) authentication. The user should have a valid national ID or resident card, the card’s security code, and an electronic card reader. As an alternative, mobile authentication may be used, provided the phone number is registered with the Royal Oman Police (ROP).

System integration and data verification

Private-sector workers need to make sure that the employment contracts must be registered in the Ministry of Labor system to appear automatically in the SPF database. Government entities that are using the Mawred or Rio systems are connected directly to the SPF.

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Employers can then verify the accuracy of employee data within the SPF portal and correct any discrepancies promptly. If a private-sector employee’s details are missing, the employer must contact the Ministry of Labor to confirm the registration of the employment contract. They also need to update worker wage information whenever salary changes occur.

The SPF system calculates monthly contributions automatically based on the latest wage data available in the portal. Monthly verification is therefore essential to prevent contribution errors.

Employers must notify the SPF of:

• New employee registrations;
• Termination of employment; and
• Wage changes.

All such updates must be submitted within 14 days of the event and retroactive adjustments to salary data are not permitted.

Contribution rates and insurance coverage

Contribution structure for Omani nationals

From January 2024, the following contribution rates apply to Omani employees:

Contributions are calculated daily based on the employee’s actual monthly wage and number of days worked. The maximum salary ceiling for contribution purposes is OMR 3,000 (US$7,802.7) per month.

Implementation of certain insurances have been delayed through Royal Decree No. 60/2025, which gives employers more time to adapt to the new requirements.

• Sick leave and other leaves insurance postponed to July 2026 (originally July 2025);
• Work injuries insurance for non-Omanis postponed to July 2028 (originally July 2026); and
• Savings scheme for expatriates postponed to July 19, 2027 (originally July 2026).

Coverage for Omani nationals and expat workers

Omani workers

All Omani citizens employed in the private sector or semi-government entities are mandatorily enrolled in the SPF system. Their contributions cover the full range of insurance branches, which has components of old-age pensions, work injury compensation, maternity benefits, and unemployment insurance.

Expat workers

Non-Omani employees are being integrated into the SPF framework through separate insurance programs:

• Work injury and occupational disease insurance for providing compensation for medical treatment and loss of earnings resulting from job-related incidents;
• Sick and other leave insurance that offers wage support during certified medical absences; and
• Maternity leave insurance that extends benefits similar to Omani employees.

Around 60,000 expat workers can avail maternity leave insurance in public and private sectors from July 19, 2024. Domestic workers remain excluded from this coverage.

Provident savings system for expats

A new mandatory savings scheme will replace the traditional end-of-service gratuity for non-Omani employees from July 19, 2027. Under this scheme, employers contribute 9 percent of the employee’s monthly basic wage to a provident fund managed by the SPF. The fund will accumulate monthly and become payable to workers upon completion of service in Oman.

Data and payroll integration

Employers are tasked with reviewing and updating salary or employment information every month. The system automatically calculates contribution amounts based on these inputs. If the input data is delayed or left out, it may result in incorrect invoicing or warnings from the authorities.

Payment processing

The SPF issues automated monthly contribution invoices based on active employee data in the system. The first batch of invoices was generated on August 31, 2024 that covered contributions for that month. From then onwards, employers are required to make payment by the 15th day of the following month.

Employers can pay through:

• Banking applications of commercial banks connected to the SPF system;
• Collection service providers (ONIC and OIFC);
• Physical branches of partner institutions; and
• Virtual bank accounts (Bank Sohar) listed on the monthly bill.

New benefits and insurance schemes

Job security insurance

The Employment Security Scheme offers temporary income support for Omani nationals who lose their jobs for non-disciplinary reasons. Benefits are calculated at 60 percent of the average wage over the previous two years, paid for a maximum of six months, either consecutive or intermittent, within a 36-month period. They are paid minimum of OMR 115 (US$299.1) per month.

Eligibility for a first claim requires at least 12 months of cumulative service within three years before job loss. For subsequent claims, the contribution periods become longer. As of early 2025, more than 590,000 Omani nationals have been registered across SPF programs.

Maternity leave insurance

The Maternity Leave Insurance Branch provides paid leave entitlements for both Omani and non-Omani workers.

• Maternity leave is 98 days at full salary;
• Paternity leave is 7 days; and
• Childcare leave is also available.

Payments are done at 100 percent of base wage with no maximum cap, if the employee meets the contribution and eligibility conditions.

Employer liability and compliance

Employers are required to maintain accuracy in wage and employee data uploaded to the portal. Any salary change or employee termination should be reported within 14 days. The SPF automatically calculates contributions, and errors in reporting can lead to retroactive penalties.

Payment deadlines and penalties

Contribution payments are due by the 15th day of the following month. Failure to pay on time can invite an automatic penalty of 5.5 percent per annum on the outstanding amount (calculated daily from the due date until payment is received).

In cases of continued failure to comply, the SPF may issue formal warnings, impose administrative penalties, or restrict company operations within the Ministry of Labor system until contributions are settled.

What does it mean financially for employers

Total contribution cost

The total statutory contribution to the SPF currently equals 21.5 percent of gross salary, because employers contribute 13.5 percent and employees contribute 8 percent.

Recent additions to insurances, such as the 1 percent maternity leave contribution for expatriate employees, have raised employment costs for businesses in labor-intensive sectors.

Future cost projections

Further increases are likely as new schemes come into effect:

• 1 percent sick leave contribution (employer portion); and
• Work injury insurance for non-Omani employees (scheduled for July 2028).

The contributions may appear burdensome, but they are making the system as a whole better off. The companies may face less litigation risk over unpaid benefits and build long term trust-based relationships with employees.

In brief

The SPF has brought a range of fragmented insurance and pension systems under one umbrella. Its electronic payment system and expanded insurance schemes give a single point of accountability for social contributions.

Its implementation is ongoing in 2025, and its success will likely depend on employer enthusiasm and effective implementation by authorities. Collectively, these reforms will only move Oman closer to its Vision 2040 goal of building a modern social protection system.

Read more: Due Diligence Checklist for Acquisitions in Qatar, Oman and Bahrain

(OMR 1 = US$2.6)

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