SPF Update: Additional 1% Employer Contribution from 19th July 2026
As part of Oman’s Social Protection Law (Royal Decree 52/2023), the Sick Leave and Extraordinary Leave Insurance Branch will come into effect on 19 July 2026, following a one-year postponement of its implementation. As a result, employers’ Social Protection Fund (SPF) contributions will increase by 1%.
- For Omani employees the total will increase from 21.5% to 22.5%. The employer will pay the extra 1% to 14.5%
- For non-Omanis employees, it will increase from 1% to 2%. The employer will pay for the additional 1%
What Does This Mean for Businesses?
- Increased employment costs from July 2026.
- Payroll systems and budgeting may need adjustment.
- Employers should ensure compliance with SPF reporting and payment requirements.
Calculation changes
The changes will be automatically calculated by SPF so there are no actions required by the companies.
Bondoni’s Perspective
While the change introduces an additional cost for employers, it reflects Oman’s continued efforts to strengthen employee welfare and social security protections.