📌 Key Highlights & Quick Takeaways:
- Muscat: Officials in Oman have announced the implementation of a new provident fund scheme for expatriate (foreign) employees by abolishing.
- According to foreign media, all companies and institutions are required to contribute 9 percent of the basic salary of each foreign employee.
- From the date of implementation of the scheme, this provident fund will replace the gratuity of the period for which the scheme is applicabl.
Muscat: Officials in Oman have announced the implementation of a new provident fund scheme for expatriate (foreign) employees by abolishing the existing end-of-service gratuity system. This new scheme will officially come into force from 19 July 2027.
According to foreign media, all companies and institutions are required to contribute 9 percent of the basic salary of each foreign employee to this fund on a monthly basis.
From the date of implementation of the scheme, this provident fund will replace the gratuity of the period for which the scheme is applicable. The savings of the employees and the profit earned thereon will be paid as per the rules and regulations of the Social Protection Act.
Employers are given three options for payment of gratuity for the period prior to the implementation of the new rules:
