Muscat: The Social Protection Fund (SPF) in Oman has provided clarification regarding the upcoming retirement savings framework for expatriate workers, which officially takes effect on July 19, 2027. Under the Social Protection Law, employers will be required to contribute 9% of each expat employee’s basic monthly salary into the fund. This national system will replace the traditional end-of-service gratuity for all service periods following the implementation date, with total funds and investment yields paid out according to statutory provisions.
For end-of-service benefits accrued prior to July 19, 2027, employers have three choices for settlement:
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Retain the funds within the company to be paid upon final termination (calculated using the employee’s basic salary at departure under standard Labour Law).
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Pay out the balance directly to the employee’s bank account when the new system begins.
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Transfer the accrued amount into the employee’s personal savings account managed by the Social Protection Fund.
