What is the 1% Employer PASI Contribution in Oman?

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 Horizons' 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 Horizons, 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.

Horizons’ Commitment

Horizons 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.