“Launching from visions that comprehend the economic and social reality, foresee the future objectively, navigate challenges, and keep pace with regional and global changes, Oman strives to invest in available opportunities. This aims to enhance economic competitiveness, social welfare, stimulate growth, and foster confidence in economic, social, and developmental relations across all governorates. The national priorities guide this effort, reshaping the roles between the public and private sectors and civil society to create an efficient, diverse, and sustainable economy. Derived from Omani identity, the goal is to ensure social welfare and essential services for all, fostering principles of integrity, justice, and transparency, positioning Oman among advanced nations, fostering a knowledgeable, creative, identity-cherishing, culturally proud, and citizenship-committed society, leading a dignified and sustainable life.
In alignment with Oman Vision 2040’s focus on welfare and social protection, the Social Protection Fund was established by Royal Decree (33/2021). It aims to apply social protection laws, collaborate with relevant entities on protection, empowerment, care, and support programs, ensuring their delivery to eligible groups.
Subsequently, Royal Decree (50/2023) regarding the Social Protection Fund was issued, a significant step toward unifying retirement funds, creating a more capable, efficient, effective, and sustainable entity. The decree aims to elevate quality of life, provide social protection and care, enhance social and economic development through policies and programs targeting various social and economic aspects.
Guided by national directions, the social protection system in Oman is a comprehensive national system aligning with international best practices, seeking to ensure resource sustainability. It is built upon national orientations, the state’s fundamental system, and Oman Vision 2040. The system promotes social justice, equality, and economic development to achieve prosperity for citizens, raise their living standards, provide decent job opportunities, support vulnerable groups, and address current challenges in retirement systems for sustainability.
Oman faced challenges in retirement and social insurance systems due to multiple funds that were non-inclusive and unsustainable. Challenges included high targeting error rates, non-engagement in the labor market by beneficiaries, and lack of coverage for various groups. The previous systems targeted the benefit of poor strata rather than protecting against poverty, leaving many uncovered. Addressing these challenges involved unifying retirement and social insurance systems, creating a more efficient central entity to achieve justice and equality among the nation’s citizens.
The Social Protection Fund aligns with the government’s vision, policies, and programs, aiming to provide adequate, fair, and comprehensive social coverage and protection for various segments of society. It strives to create an integrated and sustainable social protection system, manage fund resources, invest wisely, and align with current and future fund commitments for the benefit of recipients. The fund also implements savings tools and support programs to enhance social protection, evaluates the performance of all cash and non-cash social protection programs, and coordinates with responsible entities to improve and align them with other relevant initiatives.”
“Coverage Levels and Social Protection Benefits in Oman’s Unified Social Protection System”
In Oman’s comprehensive social protection system, there are three levels of coverage:
- Basic Social Protection Level: Funded by the state’s general budget.
- Additional Levels: Include savings schemes, complementary programs, financial and non-financial support, and personal retirement/insurance plans.
Social Protection Benefits:
The Oman Social Protection Fund aims to implement the country’s vision and policy regarding social protection. It provides appropriate, fair, and sufficient insurance coverage for various segments of society. The law encompasses two main branches:
- Cash Benefits Program for Social Protection:
- Elderly Benefit: Targeting around 167,000 Omanis aged 60 and above, with a monthly benefit of 115 Omani rials per eligible individual.
- Child Benefit: Aiming at approximately 1.29 million Omani children, with a monthly benefit of 10 Omani rials per child from birth until reaching 18 years.
- Orphans and Widows Benefit: Providing support to those facing the risk of losing a breadwinner, with a maximum monthly benefit of 80 Omani rials for widows and orphans based on the number of siblings and the death of one or both parents.
- Persons with Disabilities Benefit: Targeting individuals requiring care and movement support, with a monthly benefit of 130 Omani rials.
- Family Income Support Benefit:
- Based on income studies, aimed at supporting low-income families with varying amounts depending on family size and income.
- Insurance Programs:
- Elderly, Disability, and Death Insurance: Covers risks associated with aging, disability, and non-occupational death, providing a monthly pension for retirees.
- Maternity Leave: Covers pre- and post-natal periods for working mothers and provides a full wage for 98 continuous days, also applicable to working fathers.
- Employment Security Insurance:
- Addresses risks related to the termination of employment due to reasons beyond the insured’s control, providing temporary income during the job search period.
- Work Injuries and Occupational Diseases Insurance:
- Covers risks of workplace injuries or diseases, offering daily allowances during temporary disability periods and compensation for permanent partial or total disability.
- Sick Leave and Unusual Leave Insurance:
- Covers sick leaves and other non-routine leaves, such as marriage, death of relatives, and accompanying a sick person.
- Savings Program:
- An employer-mandated savings system for end-of-service benefits for foreign workers and an optional scheme for Omanis.
- A social protection system characterized by comprehensive coverage.
- A highly efficient system protecting against all life cycle risks, ensuring a decent standard of living for citizens.
- A sustainable system overcoming the asset depletion stage experienced by pension funds.
- Costs within the financial capacities of current and future parties and generations.
“Efficient and Inclusive Social Protection System in Oman”
A system characterized by effectiveness and efficiency, leveraging the interconnectedness of the system and utilizing available resources to create a greater impact on the citizens’ standard of living.
A collaborative system where all government entities, the private sector, and civil society participate in financing, empowering, operating, and economically and socially integrating the system.
Supporting Oman’s future directions and Vision 2040 through laying the foundation for an advanced social protection system and contributing to the achievement of Sustainable Development Goals.
Subscription rates are distributed between the insured and the workplace as follows:
- Insured Individuals:
- Contribute 7.5% to the Elderly, Disability, and Death Insurance Program.
- Contribute 0.5% as a contribution to the Employment Security Insurance Program.
- Workplace Contribution:
- 11% for the Elderly, Disability, and Death Insurance Program.
- 1% for Work Injuries and Occupational Diseases Insurance Program.
- 0.5% for Employment Security Insurance Program.
- 1% for Maternity Leave Insurance Program.
- 1% for Sick Leave and Unusual Leave Insurance Program.
Other Covered Categories:
The social protection system includes all workers, including those with fixed-term contracts and paid training contracts. The subscription for this category is calculated as follows:
- 8% contribution from the daily wage of the insured individual.
- 14.5% contribution from the monthly wage of the insured individual by the employer to the fund.
- The provisions of the Work Injuries and Occupational Diseases Insurance, Employment Security Insurance, Sick Leave and Unusual Leave Insurance, Maternity Leave Insurance programs apply to this category.