Oman Expat Savings Scheme 2027: Your Gratuity Is Changing

Oman is replacing expatriate end-of-service gratuity with a mandatory savings scheme. Here is what is confirmed, what changes, and what stays the same. Under the Social Protection Law (Royal Decree 52/2023, with dates reset by Royal Decree 60/2025), employers now pay a 1% sick-leave and other-leave insurance contribution, in force since 19 July 2026. A mandatory savings scheme of 9% of basic salary will replace end-of-service gratuity for expatriates by 19 July 2027 at the latest. Gratuity earned before the switch remains payable. What it means for you: instead of a lump sum held by your employer until you leave, contributions will go into a funded scheme every month. Anyone leaving before or after the switch date is treated differently, so your exit date now matters more than before. What this does NOT change: gratuity you have already earned is not wiped out — it remains payable, and the Article 61 formula (one month of basic pay per year) still describes the pre-switch entitlement. Sources: https://blog.zenhr.com/en/8-gcc-labor-law-changes-hr-teams-should-know-before-2027 , https://gulfnews.com/world/gulf/oman/oman-to-introduce-mandatory-savings-scheme-for-expatriate-workers-from-2027-1.500470402 , https://www.thearabianstories.com/2025/07/13/oman-set-to-implement-savings-system-for-expat-workers/ . Related: Oman end-of-service calculator (https://gulfexpatrights.com/oman/oman-end-of-service-calculator/) and Oman hub (https://gulfexpatrights.com/oman/).

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