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Oman Social Contributions Guide 2026

Oman's social insurance system (PASI) applies only to Omani nationals. Employees contribute 6.5% of basic salary (capped at OMR 3,000/month), employers contribute 10.5%. Total contribution is 17% of basic salary. Expatriates are excluded and must have private medical insurance instead.

PASI — Public Authority for Social Insurance

The Public Authority for Social Insurance (PASI) administers Oman's social security system for Omani nationals employed in the private and public sectors. Contributions are based on basic salary only (excluding housing, transport, and other allowances), with a maximum cap of OMR 3,000 per month for contribution purposes.

Contribution Rates

Omani employees: 6.5% of basic salary (up to OMR 3,000/month ceiling). Maximum monthly employee contribution: OMR 195. Minimum contribution: depends on minimum wage (OMR 325/month basic for private sector).

Employers (for Omani staff): 10.5% of basic salary (same OMR 3,000 cap). Maximum monthly employer contribution: OMR 315.

Total: 6.5% + 10.5% = 17% of basic salary, capped at OMR 510 per month combined.

Example: An Omani engineer earning basic salary OMR 2,500/month. Employee contribution: OMR 162.50 (6.5% × OMR 2,500). Employer contribution: OMR 262.50 (10.5% × OMR 2,500). Total contributed monthly: OMR 425. No employee or employer contributions on housing allowance (OMR 800), transport (OMR 200), or education allowance (OMR 400).

Expatriate Exemption

Expatriate workers (non-Omani, non-GCC) are not covered by PASI. They do not contribute to social insurance and their employers do not contribute on their behalf. Instead, employers must provide:

  • Mandatory private medical insurance (comprehensive health cover)
  • End-of-service gratuity (Sindbad scheme for some sectors, or contractual)
  • Workmen's compensation insurance (mandatory for all employees)

GCC nationals working in Oman may opt into PASI under bilateral agreements, but in practice, most GCC nationals are treated similarly to expatriates for social insurance purposes.

End-of-Service Gratuity for Expats

Expatriate employees in Oman are entitled to end-of-service gratuity under the Oman Labour Law. The standard calculation is 15 days' basic salary per year for the first 3 years, and 30 days' basic salary per year thereafter, subject to a maximum of 6 months' salary total. Some employers provide better terms under contract.