Regulation & Policy

Oman's Provident Scheme: 12-Months to mandatory rollout

Employers have one year remaining to begin paying mandatory monthly contributions under Oman's End-of-Service Benefits (EOSB) Savings Scheme.

By Nisha Braganza

As things currently stand, employers in Oman have just 12 months remaining before mandatory monthly contributions to the Provident Scheme commence on 19 July 2027.

The Provident Scheme is Oman's official End-of-Service Benefits (EOSB) Savings Scheme, replacing the traditional gratuity system for non-Omani employees as part of the country's wider social protection reforms.

Originally scheduled to take effect in July 2026, implementation was deferred by one year with the revised commencement date set for 19 July 2027.

Since that deferral, Oman has continued implementing other elements of its social protection programme broadly in line with the revised timetable, including compulsory sick leave insurance for expatriate workers.

Key features of Oman's Provident Scheme

• Mandatory employer contributions of 9% of monthly basic salary. Additional employer contributions and voluntary employee contributions are permitted.
• Savings generally remain invested until an employee leaves Oman, becomes long-term unemployed, reaches 180 months of contributions, or in cases of permanent disability or death.
• The scheme is government-administered by the Social Protection Fund and includes a government-backed minimum annual return guarantee of 2% together with a minimum benefit entitlement.

Comparison with the UAE EOSB Savings Scheme

While both Oman and the UAE have introduced funded alternatives to the traditional gratuity system, the two models differ in their design.

Oman's Provident Scheme is structured primarily as a long-term retirement savings arrangement, with limited access to accumulated savings during employment.

By comparison, the UAE EOSB Savings Scheme generally allows employees to access their accumulated savings at the end of each employment relationship. It also offers employers and employees a broader range of investment options through multiple approved private fund managers, with a default Capital Guarantee Fund that protects contributions while offering return potential, alongside other risk-based investment options.

A useful benchmark for GCC employers

The Provident Scheme was first announced in July 2023 before being deferred by one year to July 2027, providing employers with a four-year implementation period.

For employers operating across GCC jurisdictions, the Omani experience provides a useful reference point when planning for future EOSB reforms elsewhere in the region.

Sources Royal Decree No. 52/2023 Royal Decree No. 60/2025 Social Protection Fund Decision No. 13/2026