Oman recently introduced a new social protection law that aims to establish a universal social security system, according to Human Rights Watch. This law is poised to enhance the socioeconomic rights of Omani nationals and residents, particularly migrant workers facing significant challenges affecting their income. Key elements of the new system include a monthly child benefit for every family, entitlements for individuals aged 60 and older, a disability allowance, and support for widows and orphans, which contrasts with traditional means-tested programs that often leave many without support.
Lena Simet, a senior researcher at Human Rights Watch, highlighted that if implemented effectively, this system could serve as a groundbreaking model for economic security in the region, moving away from means-tested systems that fail to protect many citizens. The law enhances existing benefits and introduces new ones, including paid sick and paternity leave, occupational injury and unemployment insurance, and a mandatory savings program for migrant workers.
The legal framework, developed with guidance from the International Labour Organization (ILO), was established under Royal Decree 52/2023 in July 2023, with full implementation expected by July 2026. However, Human Rights Watch has raised concerns about certain shortcomings in the law, such as insufficient benefit levels, the exclusion of undocumented migrant workers, a brief paid maternity leave of only 14 weeks, and a lack of paid parental leave.
Oman’s labor market, which includes over 1.8 million migrant workers, is characterized by the kafala system, which ties their legal status to their employer. This arrangement often leads to various forms of exploitation. While the new law expands protections for documented migrant workers, those without valid residency still lack critical safety nets.
Furthermore, Oman has initiated measures to increase its social security budget from OMR 384 million to OMR 560 million—a nearly 45% rise for 2024. The government is also phasing out fossil fuel subsidies and reallocating funds to social programs and renewable energy transitions. Despite these advancements, concerns remain regarding how subsidy removals could disproportionately impact lower-income individuals.
In summary, Oman’s new social protection law represents a significant step towards enhancing social security, though challenges and gaps must be addressed to ensure comprehensive support for all residents, particularly vulnerable populations.
