Oman Launches Amazing Sick Leave Insurance For Expats

Discover how over 1.06 million non-Omani workers are covered under Oman's Social Protection system, with the introduction of mandatory Sick Leave and Extraordinary Leave Insurance effective July 19, 2026. This development holds significant implications for the Indian workforce in Oman; according to the Indian Embassy in Muscat, there were approximately 674,000 Indians in the country as of February 2026, with 526,496 Indian nationals holding work visas as of May 2026.

• Mandatory Sick Leave and Extraordinary Leave Insurance effective July 19, 2026
• Over 1.06 million non-Omani workers covered
• Significant implications for the Indian workforce in Oman

Employer Contributions And Rules

The new framework, established under Decision No. 13/2026, applies to non-Omani employees working within the State Administrative Apparatus, public legal entities, or private-sector establishments governed by the Omani Labour Law. Employers are required to contribute 1 percent of the worker's contribution wage to this fund, with no separate deduction from the employee's salary.

Sick Leave Allowances And Payment Structure

Under the new rules, workers can receive sick leave allowances for up to 182 days per year. The payment structure is tiered: employers must provide full wages for the first 7 days, followed by 100 percent of the wage from day 8 to 21, 75 percent from day 22 to 35, 50 percent from day 36 to 70, and 35 percent from day 71 to 182. Employers are responsible for paying the employee directly and subsequently seeking reimbursement or settlement from the Social Protection Fund.

Extraordinary Leave Coverage

The insurance also covers extraordinary leave for specific family circumstances. This includes 3 days for marriage, 3 days for the death of a parent, grandparent, sibling, or grandparent, and 2 days for the death of an uncle or aunt, all at 100 percent of the wage. For the death of a spouse or child, 10 days of paid leave are provided. Female employees whose husbands pass away are entitled to 130 days of leave for Muslim workers and 14 days for non-Muslim workers. Additionally, up to 30 days of leave is available for accompanying a family member (spouse, parent, child, or sibling) for medical treatment, with 100 percent wage coverage for the first 15 days and 50 percent for the remaining 15 days. Employees are advised to ensure their registration and wage details are accurately recorded by their employers, as reimbursement claims must be submitted by the employer. Proper documentation, including medical evidence and formal HR records, is mandatory to qualify for these benefits.