GCC Social Insurance Contribution Updates: Key Changes for Oman and Saudi Arabia

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: Social Insurance Contribution Changes

  Effective Changes

• Pension: Increased by 0.5%

  • Employee: 7.5%

  • Employer: 11%

  • Effective from Jan 1, 2024

• Job Security Insurance: Reduced by 0.5%

  • Employee: 0.5%

  • Employer: 0.5%

  • Effective from Jan 1, 2024

• Occupational Hazard Insurance: No change

• Sick Leave Insurance (New):

  • Employee: 0%

  • Employer: 1%

  • Effective from Jul 1, 2025

• Maternity Leave Insurance (New):

  • Employee: 0%

  • Employer: 1%

  • Effective from Jul 1, 2024

  Max Salary Cap

• Contribution salary remains capped at OMR 3,000

Saudi Arabia: Contribution Changes for New Employees

Applies to employees joining on or after July 3, 2024:

Country-wise Contribution Matrix

GCC Nationals Working in Oman-

Oman Nationals Working in Other GCC Countries

GCC Nationals Working in Saudi Arabia (2025–2028)

Saudi Nationals Working in Other GCC Countries (Post-July 2024)