Social Protection Law Sultani Decree 60-2025
Table of Contents
Oman’s recent legislative amendments, specifically Royal Decree No. 52/2023, signal a strategic adjustment to the rollout of several crucial insurance and social protection schemes. These changes are primarily designed to extend implementation timelines, providing stakeholders with additional time to prepare for compliance and navigate the evolving regulatory landscape.
The amendments introduced by Royal Decree No. 52/2023 aim to ensure a more phased and practical approach to the implementation of Oman’s comprehensive social protection system. By extending deadlines, the government is facilitating smoother integration of these new provisions for employers, employees, and administrative bodies alike.
Work Injuries and Occupational Diseases Insurance (Non-Omani Workers)
A critically important revision impacts the implementation timeline for the work injuries and occupational diseases insurance scheme specifically for non-Omani workers.
Originally slated to commence three years after the law’s issuance, on 19 July 2026, this vital coverage has now been deferred by an additional two years. The new effective date for this scheme is 19 July 2028. This insurance, which has been a cornerstone of protection for Omani workers under the Social Insurance Law as 1991, is designed to offer robust financial security to employees in the event of workplace accidents or occupational illnesses contracted during the course of their employment.The extension allows for a more thorough preparation and integration of this critical safety net for the expatriate workforce.
Sick Leave and Unusual Leaves Insurance
The timeline for the sick leave and unusual leaves insurance scheme has also undergone revision.Initially planned for implementation two years post-issuance of the Law (19 July 2025), the effective date has now been extended by one year.The new implementation date for this scheme is 19 July 2026.
This particular scheme represents a new addition to oman’s social protection framework, as it was not covered under the previous 1991 Social Insurance Law. It’s introduction aims to establish a structured and equitable system for managing employee absences due to illness or other exceptional circumstances,thereby balancing workforce welfare with the imperative of business continuity.The extended timeline will enable a more considered approach to its operationalization.
Compulsory Savings System (Non-Omani Workers)
The compulsory savings system, envisioned as a long-term successor to the conventional end-of-service gratuity for non-Omani employees, has also been affected by these amendments.
The original Law mandated the Social Protection Fund’s Board of Directors to implement this system within three years of the Law’s issuance, setting a deadline of 19 July 2026. The recent amendment extends this period to four years, pushing the implementation deadline to 19 July 2027.This adjustment provides a more realistic timeframe for the progress and deployment of this significant financial planning mechanism for expatriate workers.
These amendments underscore the Omani government’s commitment to a phased and practical rollout of its ambitious social protection initiatives. By extending the implementation timelines, the government is affording employers, employees, and relevant authorities ample opportunity to align operationally and structurally with the new requirements. This strategic postponement ensures that the long-term objective of establishing a comprehensive and inclusive social protection system in Oman is met with robust preparation and effective execution.
This article was written by Mehdi al Lawati, Founder and Managing Partner in Oman, and budoor al Zadjali, Associate for Al Lawati Law Firm, a collaboration firm of DLA Piper based in Oman.