The savings system, scheduled to be implemented on July 19, 2027, is one of the mechanisms designed to enhance the protection of workers' rights and regulate their end-of-service benefits. This system provides a transparent mechanism for preserving and managing workers' savings while also defining employers' financial obligations.
Details of the Savings System
This system is designed so that employers must pay 9% of the basic salary of non-Omani workers monthly. This percentage is entirely the employer's responsibility and is not deducted from the worker's salary. As a result, the savings system will replace the end-of-service benefits for the period of service from the date of its implementation, while the worker's rights for previous periods will be preserved and addressed according to the established options and regulations.
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Regulations and Classifications
The regulations of the savings system include non-Omani workers employed in government administrative units as well as non-Omani workers employed in private sector commercial institutions covered by labor law. In other words, this system does not include non-Omani workers who are not covered by labor law regulations, including domestic workers.
Clarifying the scope of coverage from the outset helps employers and workers identify the classifications that fall under the regulations of this system and prepare for the related implementation requirements.
This system aims to regulate end-of-service benefits for the period after its implementation through the savings mechanism, and instead of accumulating the end-of-service benefits for this period with the employer until the end of the employment relationship, the employer will pay premiums monthly on behalf of the worker to the savings system.
Therefore, the 9% rate and end-of-service benefits for the same period will not accumulate against the employer, as the savings system will replace the end-of-service benefits for the period of service after the implementation date. The worker's rights for the previous period of service will be preserved and will not be affected by the commencement of the system's implementation.
This system has been introduced as part of the development path of the social protection ecosystem in the Sultanate of Oman, in line with international trends and practices that help strengthen the protection of workers' rights and regulate their entitlements.
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