Oman Introduces New Employment Security System
HLB Oman Payroll Team

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Oman has recently published a new law regarding compulsory insurance for Omani nationals in situations where employment is terminated for purely business reasons. All Omani nationals working in both public sector and private sector employees are required to be insured under the new law.
Oman’s Ministry of Justice and Legal Affairs has published Royal Decree 82/2020, which provides for the introduction of a new Employment Security System that is essentially an unemployment insurance system for Omani nationals whose jobs have been terminated, by providing a temporary source of income and financial aid as they seek new roles. Payments for the contribution are due by the end of the month by public sector employers and by the 15th of the following month by private sector employers.
The requirement to pay an additional monthly contribution are effective from 1 January 2021. Companies needs to transfer their additional contribution along with the existing PASI contribution.
After adding employment security system contribution, total monthly contribution is 20.5% of the employee’s Gross Salary, of which 12.5% (includes 1% for occupational injuries and disease and another 1% for newly introduced Employment Security System) is payable by the employer and 8% % (includes 1% for newly introduced Employment Security System) is payable by the employee. The employee Pension contribution is deducted from the monthly wages and the employer needs to pay this amount along with the employer contribution to the Pension Authority.
Payroll Process in Oman
The process of payroll is a little complicated and time-consuming; hence it is always recommended to outsource your company’s payroll function. Outsourcing payroll will ensure the assistance of a team of trained payroll professionals and it frees up the time of the organization, helping them focus on other projects that add value to their business.
One should be extra vigilant while selecting their payroll provider, as payroll data is highly sensitive, and one should opt for a provider that can ensure high levels of data security.
As a leading payroll outsourcing company in Oman, HLB HAMT can help solve your payroll complexities through customized strategies. We take care of our clients’ entire payroll cycle that includes preparation of payroll reports, processing salary payment with WPS compliance, accrual management including Gratuity, pension funds, an online portal for accessing payslips, and many more. Our leadership team spends the necessary hours on every project, ensuring our clients get refined consulting services to take your business forward.
Disclaimer:
Whilst every effort has been made to ensure the accuracy of this information, HLB HAMT will not accept any liability arising out of errors or omissions. Please note that this blog is not all-inclusive. Our guidance is designed only to give general information on the issues/topics covered. It is subjected to change and not intended to be a comprehensive summary of all laws which may be applicable to your situation, treat exhaustively the subjects covered, provide legal advice, or render a legal opinion.
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