Friday, August 25, 2023

Social Protection Law 52/2023

Social Protection Law 52/2023 (the “SPL”) is heralded as a groundbreaking new law which will reshape the social protection framework within the Sultanate of Oman. 

One of the notable provisions of the law is the establishment of a unified social protection system that integrates various existing programs and services under one umbrella, ensuring better coordination and efficiency. It introduces a comprehensive framework for social protection, covering areas such as income security, healthcare, workplace injury and disability, education, and housing. Importantly, it includes many protections that apply for both Omani citizens and expatriate residents alike. 

For many businesses, and expatriate employees, Articles 138 and 139 of the new law will be of particular interest. These provisions will eventually amend the existing End of Service Benefit (“EOSB”) system provided for in the Labour Law. The SPL introduces a savings fund, into which 9% of an employee’s monthly salary is to be paid. Full details of how the fund will be implemented will be announced in due course. It is expected that the new EOSB system will be implemented over the next three years. Until that time, the current EOSB system will continue to be in place. These provisions are intended to bring greater certainty to employees in regard to EOSB payments, and streamline the process for employers. 

Curtis will provide updates as further details on the implementation of the SPL are announced.