Oman Introduces Sick Leave Insurance Scheme Starting July 19, 2026

Jul 16, 2026

69 min

Jul 16, 2026 17:30

Oman rolls out sick leave insurance scheme from July 19

## New Insurance Scheme Details

Oman is set to implement a new sick leave insurance scheme on July 19, 2026. This initiative requires employers to contribute 1% of each employee's wage towards the scheme, which is part of the broader Social Protection Law reforms.

## Coverage and Implementation

The scheme will cover both Omani and certain expatriate workers in public and private sectors. Employers will need to adjust their payroll systems to accommodate the new contribution and manage leave records effectively.

## Compensation Structure

Under the scheme, employers will initially pay the full salary for the first seven days of an employee's sick leave. From the eighth day, the insurance will reimburse eligible payments, provided there is medical evidence. The coverage includes 100% wage compensation from days eight to 21, 75% from days 22 to 35, 50% from days 36 to 70, and 35% from days 71 to 182.

## Additional Leave Coverage

The insurance also extends to other types of leave, such as marriage, bereavement, and accompanying relatives for medical treatment. It will also cover contributions for old-age, disability, and death insurance during these leave periods, ensuring employees' insurance records remain intact.

## System Updates Required

Employers must update their payroll systems to calculate the new contributions and maintain accurate records for processing reimbursement claims. This move aims to enhance employment stability and business continuity in Oman.

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