Muscat -The Social Protection Fund (SPF) has confirmed that employees covered under the sick leave and extraordinary leave insurance scheme will not have 1% deducted from their salaries, clarifying that the additional contribution is entirely the responsibility of employers.

Malik bin Salim bin Suleiman Al Harthy, Director General of Entitlements at the SPF, said the 1% contribution stipulated under the sick leave and extraordinary leave insurance is an obligation on employers and will not be deducted from the wages of insured employees.

The clarification follows questions raised by employees regarding whether the introduction of the new insurance scheme would affect their monthly salaries.

According to the SPF, employers currently contribute 13.5% of an employee’s insured wage under the social protection system. With the implementation of the new insurance scheme, the employer’s total contribution will increase by 1 percentage point, bringing the overall contribution to 14.5%.

Al Harthi stressed that the additional contribution is intended to strengthen social protection benefits without placing any financial burden on employees.

Under the scheme, employers will initially pay compensation to eligible employees during periods of sick leave and extraordinary leave covered by the system. These amounts will subsequently be reimbursed by the SPF in accordance with the provisions of the insurance scheme.

The new mechanism is designed to provide financial security for workers while ensuring employers are compensated for payments made during eligible leave periods.

The SPF urged employers and insured individuals to rely on official sources for accurate information regarding the implementation of the new insurance scheme and their respective contribution obligations.

The clarification comes as Oman continues to expand its social protection framework to enhance income security for workers and provide broader insurance coverage in line with the country’s ongoing labour market and social welfare reforms.