Oman to launch job security fund

Oman to launch job security fund

From 1 Nov 2020, a new Job Security Fund will pay an allowance to Omani citizens who have completed any probationary period and are terminated for non-disciplinary reasons. The allowance amount will be 80% of the employee’s average wage — calculated over the 24 months prior to the termination date — and will be paid for up to six months.  

From 1 Jan 2021, private and public sector employees will pay 1% of their monthly salaries to the fund via payroll deduction, and employers will be required to pay the same amount to the Public Authority for Social Insurance. Employers that hire non-Omani employees will have to pay an additional 5% into the fund when applying for, or renewing, work permits. From 1 Nov 2023, the fund will expand to pay an allowance to Omani citizens searching for a job.  

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Fiona Webster
by Fiona Webster

Principal, Mercer’s Law & Policy Group

Stephanie Rosseau
by Stephanie Rosseau

Principal, Mercer’s Law & Policy Group

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