ILO and Swiss Agency for Development and Cooperation reaffirm support for Oman’s inclusive social protection reforms

MUSCAT (ILO News) – The International Labour Organization (ILO) joined partners from the Government of Oman, the Swiss Agency for Development and Cooperation (SDC), and national stakeholders at a high-level working lunch on Sunday in honour of Ambassador Patrizia Danzi, Director General of SDC. The event, hosted by Oman’s Social Protection Fund (SPF), marked the ongoing collaboration with the SDC and ILO and was an opportunity to discuss Oman’s engagement in the new ILO global programme STREAM.

Launched in December 2024, STREAM aims to extend inclusive social protection systems for migrant workers along the South Asia–Gulf migration corridor. The programme targets structural barriers to legal and effective access to social protection, promotes policy and regulatory reforms, and enhances workers’ enjoyment of social insurance benefits through increased dialogue and coordination between countries of origin and destination. STREAM emphasizes the importance of social dialogue, regional cooperation, and data-driven advocacy to improve inclusive protection systems.

As part of her visit, Ambassador Danzi held a meeting with the leadership and technical teams of the SPF, where discussions focused on the progress of the implementation and rising challenges, and opportunities to deepen technical cooperation in the context of the new initiative. The bilateral exchange with the Ambassador of Nepal to the Sultanate of Oman Dornath Aryal was an opportunity to appreciate ongoing efforts of labour sending countries to extend access to national social insurance systems to migrant workers and their families. The delegation also met with beneficiaries of the new social insurance maternity benefits, who shared firsthand experiences of how the reforms are beginning to translate into tangible improvements in people’s lives.

© ILO

© ILO

Ambassador Danzi reaffirmed Switzerland’s support for extending social protection as part of its commitment to fair labour migration to Gulf countries: “Through STREAM, SDC demonstrates its support to social protection systems that are inclusive of migrants. Investing in the social protection of migrants is not only a matter of upholding human rights but helps to reduce inequalities, enhances social cohesion, and contributes to the economic stability of both host and origin countries. It is a strategic approach to promote sustainable development".

The visit came in the context of Oman’s transformative social protection reforms initiated under the recently adopted social protection law, which established a unified framework for extending social protection coverage to all residents. Since the launch of the reforms in 2023, Oman has introduced a lifecycle-based, multi-tiered social protection system that combines contributory and non-contributory schemes. Crucially, the reforms extend several entitlements to non-Omani workers, gradually introducing inclusive maternity, paternity, sickness and employment injury benefits and replacing the end-of-service indemnity with a national provident fund—strengthening protection for migrant workers in line with international labour standards on social security.

Shabib Al Busaidi, Deputy CEO of the Social Protection Fund, highlighted the value of international cooperation: “The technical expertise and global experience brought by the ILO have been vital in supporting the design and implementation of Oman’s new social protection system. This partnership ensures we are guided by global best practices and a shared commitment to equity and sustainability. Options to transfer the accumulated fund and future contributions to the migrant workers’ home countries social security systems through bilateral or regional agreements are envisaged as future development of the system.”

© ILO

© ILO

Dornath Aryal, Ambassador of Nepal to the Sultanate of Oman, underscored the importance of regional partnerships in strengthening social protection for migrant workers: "Our responsibility extends beyond sending workers abroad; it includes ensuring that Nepali migrant workers are informed, and able to access social protection systems both in Nepal and in Oman. Strengthening awareness is fundamental to building safer migration pathways and securing the rights of our citizens abroad.”

In 2023 the Social Security Fund of Nepal has extended coverage to migrant workers including medical, accident, disability, and retirement pensions. More recently health insurance coverage for family members at home has also been added. Registration with the Social Security Fund is mandatory to receive a labour approval to work overseas.

In December 2024 the ILO launched its new Strategy on extending social protection to migrant workers, refugees and their families. It presents ILO’s strategic approach, theory of change and guiding principles when supporting Members States in the development and implementation of policies or mechanisms aimed at extending social protection to migrant workers, refugees and their families, based on International Labour Standards.

Luca Pellerano, Senior Technical Advisor and STREAM Programme Manager at the ILO, highlighted key priorities for the work ahead: “Adapting social protection systems to the particular needs and circumstances of migrant workers is a defining challenge for host and sending countries alike. By extending maternity and paternity benefits and gradually additional benefits to both Omani and non-Omani worker, Oman is setting a regional benchmark. Several other countries in the GCC are also introducing new social protection systems for migrant workers. The new STREAM programme will focus on connecting ongoing efforts at extending access to social protection in both law and practice from both ends of the South Asia-GCC migration corridor, one of the largest in the world.”

Building on its long-standing partnership with Oman, the SDC and ILO reaffirmed their continued support for the implementation of the reforms, including through technical assistance, policy dialogue, and capacity-building efforts. The ILO will continue to work closely with social partners in Oman to ensure the new social protection system is effectively implemented, financially sustainable, and responsive to the needs of all residents. The new STREAM programme will also support sending countries in South Asia to align their efforts at extending social security to labour migrants with the new wave of reforms across a number of GCC countries, in line with international labour standards on social security.