Effective 1 July 2025, employers in the Sultanate of Oman will be subject to a new 1% contribution to the Public Authority for Social Insurance (PASI), in accordance with the country's Social Protection Law. This update is relevant to all companies employing staff in Oman, including those supported through Remote People's Employer of Record (EOR) services.
What Is the Purpose of This Contribution?
The new 1% employer-only contribution is designed to fund insurance coverage for employee absences due to:
Sick leave
Bereavement leave
Marriage leave
Caregiver leave
Other extraordinary leave types
This initiative enhances the statutory benefits available to both Omani and non-Omani employees working in the country.
Key Details
Effective Date: 1 July 2025
Contribution Rate: 1% of salary (paid by employer only)
Employee Impact: No change to employee contributions
Applicability: All employees, regardless of nationality
Legal Basis: Articles 121 and 123 of Oman's Social Protection Law
How Does This Affect Employers?
As an employer operating in Oman, or partnering with an EOR like Remote People, you will be required to include the additional 1% PASI contribution in your statutory cost planning from July 2025 onward. This change does not affect the employee's net salary or their existing contribution rates.
Remote People's Commitment
Remote People will manage full compliance with this update as part of our EOR services in Oman. Our team will ensure that all employer contributions are handled accurately and in alignment with local regulations.