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Introduction

Social insurance contributions are mandatory across the GCC (Gulf Cooperation Council) for national employees and are regulated by each country’s statutory framework. These contributions are calculated based on an employee’s basic salary and fixed allowances and are deducted monthly to fund benefits such as pensions, unemployment, maternity, and sick leave.

As part of ongoing statutory reforms, Oman and Saudi Arabia have recently announced changes to their social insurance contribution structures. These updates affect both employers and employees, with new rates already in effect or rolling out in phases through 2028.

This guide outlines what’s changing, who it impacts, and how payroll teams can stay compliant using Keka’s automation tools.

Why This Matters

Adhering to updated contribution rules is essential for legal compliance and employee benefit eligibility. Automating these new rates in payroll ensures:

  • Timely and accurate statutory deductions

  • Elimination of manual errors

  • Simplified cross-border compliance for GCC nationals

Who Should Take Action

Payroll Admins

  • Goal: Ensure payroll compliance across GCC locations

  • Need: Stay updated with changing country-specific rules

  • Motivation: Reduce manual tracking and effort

GCC National Employees

  • Goal: Receive correct deductions for social insurance schemes

  • Need: Benefit from accurate contributions to pensions, unemployment, etc.

  • Motivation: Maximize entitlement under national benefit programs

Oman Citizen Contribution Changes

The maximum contribution salary remains capped at OMR 3,000.

Updated Contribution Structure

Contribution TypeEmployee ShareEmployer ShareEffective Date
Pension7.5%11%1 Jan 2024
Job Security0.5%0.5%1 Jan 2024
Occupational HazardNo changeNo change—
Insurance for Maternity Leaves0%1%1 Jul 2024
Insurance for Sick & Other Leaves0%1%1 Jul 2025

GCC Nationals Working in Oman

NationalityEmployee ShareEmployer ShareComments
UAE6.5% (< 31 Oct 2023) / 15% (> 31 Oct 2023)11%Employee share depends on contribution date
Saudi Arabia9%9%Increases 0.5% yearly until reaching 11% by 2028
Bahrain11% (2025), 12% (2026), 13% (2027), 14% (2028)11%—
Kuwait7.5%11%—
Qatar5%10%—

Oman Nationals Working in Other GCC Countries

Work CountryEmployee ShareEmployer Share
UAE7.5%11%
Saudi Arabia9.5%9%
Bahrain7.5%11%
Kuwait7.5%11%
Qatar8.5%10%

Saudi Citizen Contribution Changes

(For employees who joined after 3 July 2024)

Contribution rates will increase gradually each year.

YearEmployee ShareEmployer Share
20249%9%
20259.5%9.5%
202610%10%
202710.5%10.5%
202811%11%

Note:
There are no changes for employees who joined before 3 July 2024.

GCC Nationals Working in Saudi Arabia

2025

CountryEmployee ShareEmployer ShareComments
UAE8.5% (< 31 Oct 2023) / 17% (> 31 Oct 2023 & < 3 Jul 2024) / 16.5% (> 3 Jul 2024)9% / 9% / 9.5%Depends on contribution date
Oman9%9.5%—
Bahrain12.5%9.5%—
Kuwait9%9.5%—
Qatar5.5%9.5%—

2026

CountryEmployee ShareEmployer Share
UAE8.5% / 17% / 16%9% / 9% / 10%
Oman8.5%10%
Bahrain13%10%
Kuwait8.5%10%
Qatar5%10%

2027

CountryEmployee ShareEmployer Share
UAE8.5% / 17% / 15.5%9% / 9% / 10.5%
Oman8%10.5%
Bahrain13.5%10.5%
Kuwait8%10.5%
Qatar5%10%

2028

CountryEmployee ShareEmployer Share
UAE8.5% / 17% / 15%9% / 9% / 11%
Oman7.5%11%
Bahrain14%11%
Kuwait7.5%11%
Qatar5%10%

Saudi Nationals Working in Other GCC Countries

(For employees who joined after 3 July 2024)

2025

Work CountryEmployee ShareEmployer Share
UAE9.5%9.5%
Oman9.5%9.5%
Bahrain9.5%9.5%
Kuwait9.5%9.5%
Qatar9.5%9.5%

2026

Work CountryEmployee ShareEmployer Share
UAE10%10%
Oman10%10%
Bahrain10%10%
Kuwait10%10%
Qatar10%10%

2027

Work CountryEmployee ShareEmployer Share
UAE10.5%10.5%
Oman10.5%10.5%
Bahrain10.5%10.5%
Kuwait10.5%10.5%
Qatar11%10%

2028

Work CountryEmployee ShareEmployer Share
UAE11%11%
Oman11%11%
Bahrain11%11%
Kuwait11%11%
Qatar12%10%

 

 

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