On 19 July 2027, Oman stops accruing end-of-service gratuity for expatriate workers. From that day, your employer instead pays 9% of your monthly basic wage into a personal account at the Social Protection Fund (SPF). The money you earned before that date does not vanish — but under Article 138 of the Social Protection Law, it reaches a fork in the road: it can be paid to you in cash under the Labour Law when you leave, or transferred into your savings account at the Fund.
The detail most expats have not been told: that choice belongs to your employer. Article 138 requires the employer to pay the pre-switchover gratuity under the Labour Law or settle it to the savings system. There is no clause requiring your consent.
What changed — and when each piece starts
The savings system was originally set for July 2026. Royal Decree 60/2025 (issued 13 July 2025) rewrote the calendar for all three pending branches:
| Provision | Original date | Current date |
|---|---|---|
| Sick leave / exceptional leave insurance | Jul 2025 | Jul 2026 |
| Savings system replaces expat gratuity | Jul 2026 | 19 Jul 2027 |
| Work-injury insurance branch (expats) | Jul 2026 | Jul 2028 |
Until 19 July 2027, expat gratuity keeps accruing under Article 61 of the Labour Law (Royal Decree 53/2023): one month of basic salary per year of service — with the pre-August-2023 tail still computed under the old 15/30-day formula of the previous labour law.
The legal framework in one table
| Provision | What it establishes |
|---|---|
| Social Protection Law (RD 52/2023), Art. 136 | The savings system applies compulsorily to expatriate employees |
| Art. 139(1) | Financing: 9% of the monthly basic wage, paid by the employer |
| Art. 138 | Pre-commencement gratuity is settled under the Labour Law or transferred to the savings system |
| Art. 141 | The saver is entitled to contributions + deposits + investment returns; the regulation may set a floor |
| Art. 142 | Payout as a one-time payment or annual/monthly instalments, at the saver’s request |
| Art. 143 | Disbursement events: end of employment, death, or permanent disability |
| Executive Regulation, Art. 101 | Employer must deposit contributions within 15 days of the following month — late payment accrues an 8% annual penalty |
| Executive Regulation, Art. 104 | Minimum guaranteed return: 2% per year |
| Executive Regulation, Art. 106 | The SPF announces each year’s actual return by the end of Q1 of the following year |
| Executive Regulation, Art. 109 | On job change, a 3-month window to start new employment applies before savings become accessible |
| Executive Regulation, Art. 139 | Deposits are made in Omani rials, not less than OMR 100 each |
The Executive Regulation of the Social Protection Law is published by the Social Protection Fund. English translations of the decrees are available at decree.om.
How the savings system works from 19 July 2027
- Who pays: the employer only — 9% of monthly basic wage (Art. 139(1)). Allowances are excluded.
- Where it goes: a personal account in your name at the SPF, funded in rials with deposits of at least OMR 100 (ER Art. 139), payable within 15 days of the following month (ER Art. 101).
- Return: invested by the Fund with a guaranteed floor of 2% per year (ER Art. 104); the actual annual return is announced by the end of the following Q1 (ER Art. 106).
- When you collect: at end of employment, death, or permanent disability (Art. 143) — as a lump sum or in instalments, your choice (Art. 142). If you switch employers inside Oman, the 3-month re-employment window of ER Art. 109 applies first; the account keeps running rather than paying out.
- Voluntary top-ups: you may add your own contributions to the same account.
The Article 138 fork: what happens to gratuity you already earned
Everything accrued up to 18 July 2027 is calculated the same way in both routes — the Article 61 split formula. The fork is what happens next:
| Route A — cash under the Labour Law | Route B — transfer to the Fund | |
|---|---|---|
| When you receive it | At end of service, from the employer | At end of service, from the SPF |
| Between 2027 and your exit | Sits as an unfunded employer liability | Compounds at the Fund’s return (min 2%/yr) |
| If the company fails | You queue as a creditor | Money already sits at the Fund, in your name |
| If you are dismissed for gross misconduct (Art. 41, Labour Law) | Legacy gratuity can be forfeited | Anything already transferred to your SPF account is your property |
| Liquidity | Cash on exit day | Cash on exit day (plus accrued return) |
The Article 41 asymmetry is the least-known consequence: a with-cause dismissal zeroes a Labour-Law gratuity claim, but it cannot claw back funds already sitting in your SPF savings account. For an employee with a difficult employer, Route B is also an insurance policy.
The numbers: one worker, both routes
Worker on OMR 800 basic, hired 19 July 2024, leaving Oman on 19 July 2030 — three years of legacy gratuity plus three years inside the savings system. Computed with our Oman Savings System Calculator:
| Component | Route A (cash) | Route B (transfer) |
|---|---|---|
| Legacy gratuity (3 yrs × 1 month) | OMR 2,398 paid at exit | OMR 2,398 transferred in 2027 |
| Legacy after 3 yrs at the Fund (2% min) | — | OMR 2,547 |
| SPS pot (36 × OMR 72 employer, 2%) | OMR 2,670 | OMR 2,670 |
| Total at exit (2% guaranteed) | OMR 5,068 | OMR 5,216 |
| Total at exit (6% actual return) | OMR 5,231 | OMR 5,703 |
At the guaranteed minimum, the transfer route ends OMR 148 ahead; at a 6% actual return the gap widens to OMR 472. Return sensitivity for the transfer route: OMR 5,216 (2%) → 5,453 (4%) → 5,703 (6%) → 5,966 (8%).
Route A has one lever the table cannot show: under the Labour Law the gratuity is computed on your basic salary when you leave. If you expect significant raises between 2027 and your exit, cash-at-exit rides those raises, while a 2027 transfer freezes the amount before compounding it. Run your own raise scenario in the calculator before assuming the fund wins.
Quick answers
Can my employer transfer my accrued gratuity to the Fund without asking me? Yes. Article 138 gives the employer the election between paying under the Labour Law and settling into the savings system. No provision conditions it on the worker’s consent.
Is the savings system optional for expats? No. Article 136 makes it compulsory for non-Omani private-sector workers from 19 July 2027; the 9% employer contribution replaces gratuity accrual entirely.
What if I change jobs inside Oman instead of leaving? Your account does not pay out. Executive Regulation Article 109 applies a 3-month window to take up new employment; the account continues under the new employer’s contributions.
How do I know my employer is actually paying? Contributions are due within 15 days of the following month, and late employers owe an 8% annual penalty (ER Art. 101). The balance sits in a personal account at the SPF in your name — check it rather than trusting the payslip.
Does my gratuity stop growing on 19 July 2027? Accrual under Article 61 stops; from then on value comes from the 9% contributions plus the Fund’s return. Pre-2027 money either waits for your exit (Route A) or starts compounding at the Fund (Route B).
What should I check with my employer now? Which Article 138 route they intend to take, in writing, and — if Route A — how the liability is provisioned. A year before the switchover is the right time to ask.
Run your own numbers — salary, hire date, exit horizon, voluntary top-ups and return scenarios — in the Oman Savings System Calculator, and check the legacy split itself with the Oman EOSB Calculator.