What replaced PASI in Oman?

The Social Protection Fund (SPF), established under Royal Decree 52/2023, replaced the Public Authority for Social Insurance (PASI). Contributions for Omani nationals are now paid to the SPF across several branches, including pension, work injury, maternity and job security. Check the Fund's current rates and salary ceilings before each payroll year.

How is end-of-service indemnity calculated in Oman?

For non-Omani employees, end-of-service benefits are based on years of service and basic salary under the Oman Labour Law (Royal Decree 53/2023). Omani nationals covered by the Social Protection Fund receive pension benefits instead of a lump-sum payment.

What are the working hours in Oman during Ramadan?

During Ramadan, working hours for Muslim employees in the private sector are reduced to 6 hours per day and no more than 30 hours per week, as announced each year by the Ministry of Labour.

Oman Payroll Compliance Guide | Social Protection Fund, Labour Law

Quick answer

Oman payroll compliance requires employers to register Omani employees with the Social Protection Fund (SPF), which replaced PASI, and remit monthly contributions at the rates the Fund sets; comply with the Oman Labour Law (Royal Decree 53/2023) on working hours and leave; and calculate end-of-service benefits for non-Omani employees. OfficeKit HR automates SPF calculations, leave tracking, and payroll processing for Omani entities.

Key regulations in Oman

Social Protection Fund (SPF)

Mandatory for Omani nationals working in the private sector. The SPF replaced the Public Authority for Social Insurance (PASI) under Royal Decree 52/2023. It covers old-age pension, disability and death, work injury, maternity and job security, with employer and employee contributions at rates set by the Fund.

Oman Labour Law (Royal Decree 53/2023)

Governs working hours (including reduced hours during Ramadan), annual leave (30 days), sick leave, overtime rules, and termination procedures for private-sector employees. It replaced Royal Decree 35/2003 in 2023.

End-of-Service Indemnity (EOSI)

Non-Omani employees receive an end-of-service benefit based on years of service and basic salary under the Labour Law. Omani nationals are covered by the Social Protection Fund pension instead. An SPF savings scheme for non-Omani employees is planned to replace the lump-sum benefit.

Ministry of Labour Compliance

Employers must maintain accurate employment records, register with the Ministry of Labour, and comply with Omanization (Saudization equivalent) policies. Regular inspections ensure labour law compliance.

Compliance checklist for Oman

Configure salary components for SPF contribution calculations

Set up current SPF contribution rates for each branch (pension, work injury, maternity, job security)

Configure leave policies per the Oman Labour Law (Royal Decree 53/2023)

Run monthly payroll with auto-calculated SPF and mandatory deductions

Generate SPF contribution reports for monthly remittance

Calculate end-of-service benefits for non-Omani employees under the current Labour Law

Track Ramadan working hours for Muslim employees (6 hours/day, 30 hours/week) in attendance and scheduling

Maintain compliance registers for Ministry of Labour inspections

How OfficeKit HR helps with Oman compliance

OfficeKit HR centralises employee records, attendance, leave, and payroll in one system — reducing manual data transfer and compliance errors. Payroll rules for Oman are configured within the platform, and statutory filings are generated from the same data used for pay runs.

Multi-country groups running entities in India and the GCC can manage all payroll compliance from a single HRMS, with region-specific rules applied per entity.

Oman Payroll Compliance Guide