MUSCAT: A recently issued Royal Decree has officially postponed the implementation date of the savings system for expatriate workers in Oman. Initially scheduled to begin in 2026, the program will now take effect on July 19, 2027. This change reflects the government’s intention to provide ample time for all stakeholders, including employers and regulatory authorities, to prepare for the full-scale adoption of the new framework. The revised timeline is expected to support a smoother and more efficient rollout of the savings system.
The savings system is designed to replace the current end-of-service benefit scheme for expatriate employees, offering a structured and sustainable alternative. Under the proposed structure, employers will make regular contributions to individual savings accounts for their foreign workers throughout the duration of employment. These funds will be managed in accordance with investment guidelines to ensure capital preservation and potential growth, thereby enhancing the long-term financial security of the expatriate workforce in Oman.
Authorities have emphasized that this system aligns with Oman Vision 2040, which includes goals for strengthening labor market competitiveness and improving expatriate working conditions. The savings scheme also intends to establish a more transparent and consistent mechanism for employee compensation upon the completion of service, reducing potential disputes and administrative challenges associated with the current system. It is seen as part of broader efforts to modernize labor regulations in the country.
To support the transition, government bodies are expected to issue further technical and legal guidelines, as well as provide training and awareness programs for businesses and employees. This extended timeline will also give companies, particularly small and medium-sized enterprises (SMEs), the opportunity to align their internal payroll and human resources systems with the new requirements. The decree marks a significant step in ensuring that labor reforms are both effective and inclusive for all sectors of the economy.