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Oman sick-leave insurance for non-Omani workers: the employer workflow from July 2026
A practical employer guide to Oman’s sick and unusual leave insurance for non-Omani workers, including coverage, the 1% contribution, pay bands, and reimbursement records.
Payroll - 10 min read - Updated 2026-08-12 - ZoroBiz Editorial Team
Software guidance only. Confirm legal, tax, payroll, and compliance decisions with qualified local advisors.
A new payroll workflow began on 19 July 2026
Oman’s Social Protection Fund began applying the Sick Leave and Unusual Leave Insurance Branch on 19 July 2026. The current Fund guidance covers all non-Omani workers in state administrative units and private-sector establishments who are subject to the Labour Law, alongside the Omani categories covered by the law.
The guidance excludes non-Omani workers outside the Labour Law, such as domestic workers. Employers should confirm that each worker is correctly registered and classified rather than applying one rule to every person on the payroll.
The contribution and cash-flow model
The Social Protection Law sets an employer contribution of 1% of the monthly contribution wage for this insurance branch, calculated on a daily basis. During an eligible leave, the employer continues to pay the employee and the required contributions.
The employer then submits the claim and evidence to the Fund for reimbursement or settlement. This means the accounting workflow must distinguish the original payroll payment, the amount recoverable from the Fund, the claim status, and the reimbursement received. Treating the reimbursement as an unexplained payroll reversal will weaken the audit trail.
Sick-leave payment bands
The insured worker may receive sick-leave allowance for up to 182 days per year. The employer covers days 1 to 7 at 100% of wage. The insurance branch covers days 8 to 21 at 100%, days 22 to 35 at 75%, days 36 to 70 at 50%, and days 71 to 182 at 35%, subject to the law and supporting evidence.
The branch also covers defined unusual leaves, including marriage, specified bereavement, widowhood, and accompanying an eligible patient. Each leave type has its own duration and evidence requirements, so payroll should not use one generic “special leave” code for every case.
Records needed for a clean claim
Keep the employee identifier, coverage status, leave type, dates, medical or civil evidence, last contribution wage, payroll calculation, employer and employee contributions, approval history, Fund application reference, and reimbursement outcome. Ensure the leave dates match attendance and payroll periods.
Assign responsibility for submitting the application and following up on missing evidence. HR may approve the leave, payroll may calculate it, and finance may reconcile the reimbursement, but all three teams should refer to one case record.
How ZoroBiz helps
ZoroBiz connects employee records, attendance, leave, payroll, payslips, expenses, approvals, and reports. This makes it easier to trace a leave request through the payroll period and preserve the documentation needed for internal review.
Employers must still use the Social Protection Fund portal and follow its current claim procedure. ZoroBiz supports the operating record; it does not determine eligibility or guarantee reimbursement.
Social Protection Fund — sick and other leave insurance guidance: https://www.spf.gov.om/en/insurance_programs/insurance-for-sick-and-other-leaves/
Social Protection Fund — Social Protection Law, Articles 121–126: https://www.spf.gov.om/wp-content/uploads/2024/11/Social-Protaction-Law.pdf
Social Protection Fund — implementation news, 19 July 2026: https://www.spf.gov.om/news/
When did the sick and unusual leave insurance branch begin? The Social Protection Fund announced implementation on 19 July 2026.
Which non-Omani workers are covered? The Fund states that coverage includes non-Omani workers in state administrative units and private-sector establishments who are subject to the Labour Law. Non-Omani domestic workers are excluded because they are not covered by the Labour Law.
How much does the employer contribute? Article 123 of the Social Protection Law sets a monthly employer contribution of 1% of the contribution wage, calculated daily.
Who pays the employee during covered leave? The employer continues paying the employee and the required contributions, then applies to the Social Protection Fund for reimbursement or settlement with supporting documents.