The savings scheme at the Social Protection Fund replaces the end-of-service award that employers pay expatriates as a lump sum when employment ends, so the entitlement is funded through regular contributions to the Fund instead, starting July 2027 according to the announced schedule.
Step by step
- 1
Know the transition date
Follow the official schedule the Social Protection Fund announces for applying the scheme.
- 2
Estimate the current liability
Calculate the end-of-service awards expatriates have accrued so far, since they are an existing liability for the company.
- 3
Prepare the data
Expatriates' basic wages and joining dates should be accurate and up to date, since they are the basis of any calculation.
- 4
Plan cash flow
Regular contributions turn the cost from a single payment at the end of employment into a monthly cost.
Putting off estimating the accrued liability until the transition date leaves the company facing a large figure it did not plan for.
- social protection fund expat end of service
- oman savings scheme instead of gratuity