Oman

Old Age, Disability, and Survivors

Regulatory Framework

First and current law: 1991 (social insurance), implemented in 1992.

Type of program: Social insurance system.

Note: An income-tested benefit is paid to certain elderly persons, persons with disabilities, and survivors under Family Allowances.

Coverage

Citizens of Oman employed in the private sector or working in one of the Gulf Cooperation Council countries (Bahrain, Kuwait, Qatar, Saudi Arabia, or United Arab Emirates).

Voluntary coverage for citizens of Oman working abroad and self-employed persons working in Oman.

Exclusions: Foreign nationals and household workers.

Special system for certain public-sector employees.

Source of Funds

Insured person: 7% of gross monthly covered earnings.

The minimum monthly earnings used to calculate contributions are 325 rials if working in Oman; 200 rials if working abroad.

The maximum monthly earnings used to calculate contributions are 3,000 rials if working in Oman; 1,000 rials if working abroad.

Self-employed person: The contribution rate varies depending on income: 6.5% of monthly declared income from 225 rials to 249 rials; 8.5% of income from 250 rials to 399 rials; 11% of income from 400 rials to 599 rials; 12% of income from 600 rials to 799 rials; 13% of income from 800 rials to 999 rials; 14% of income from 1,000 rials to 1,199 rials; 15% of income from 1,200 rials to 1,499 rials; and 16% of income from 1,500 rials to 3,000 rials.

The minimum monthly earnings used to calculate contributions are 225 rials.

The maximum monthly earnings used to calculate contributions are 3,000 rials.

Employer: 10.5% of gross monthly covered payroll.

The minimum monthly earnings used to calculate contributions are 325 rials if working in Oman; 200 rials if working abroad.

The maximum monthly earnings used to calculate contributions are 3,000 rials if working in Oman; 1,000 rials if working abroad.

Government: 5.5% of gross monthly covered earnings for employed persons. For self-employed persons, 13.5% of the self-employed person's monthly declared income from 225 rials to 249 rials; 11.5% of income from 250 rials to 399 rials; 9% of income from 400 rials to 599 rials; 8% of income from 600 rials to 799 rials; 7% of income from 800 rials to 999 rials; 6% of income from 1,000 rials to 1,199 rials; 5% of income from 1,200 rials to 1,499 rials; and 4% of income from 1,500 to 3,000 rials.

The minimum monthly earnings used to calculate contributions are 225 rials.

The maximum monthly earnings used to calculate contributions are 3,000 rials.

Qualifying Conditions

Old-age pension: Age 60 with at least 180 months of contributions (men) or age 55 with at least 120 months of contributions (women).

Early pension: Aged 45 to 59 with at least 240 months (men) or 180 months (women) of contributions.

Pension supplement (end-of-service grant): Paid to supplement an old-age pension claimed at the normal retirement age.

Old-age settlement (end-of-service benefit): Paid at the normal retirement age if the insured has at least 12 months of contributions but does not meet the contribution requirement for an old-age pension.

Benefit supplement (end-of-service grant): Paid to supplement the old-age settlement.

Disability pension: Must be younger than the normal retirement age, be assessed with a disability, and have at least six consecutive months of contributions before the disability began, or at least 12 nonconsecutive months of contributions, including at least three months immediately before the disability began.

Pension supplement (end-of-service grant): Paid to supplement the disability pension.

Disability settlement (end-of-service benefit): Must be assessed with a disability, have at least one year of contributions, and not meet the contribution requirement for a disability pension.

Benefit supplement (end-of-service grant): Paid to supplement the disability settlement.

Survivor pension: The deceased was in covered employment at the time of death or had ceased work within the last 12 months, and had at least six consecutive months of contributions immediately before death or 12 nonconsecutive months of contributions, including at least three months immediately before death.

Eligible survivors include widow(er)s, sons up to age 22 (age 26 if a full-time student, no limit if disabled), unmarried daughters of any age, and dependent parents, brothers, and sisters.

The widow(er)'s pension ceases upon remarriage and resumes if the widow(er) divorces or is widowed.

Marriage grant: Paid to an orphaned daughter upon marriage.

Pension supplement (end-of-service grant): Paid to supplement the survivor pension.

Survivor settlement (end-of-service benefit): The deceased had at least one year of contributions but did not meet the contribution requirement for a survivor pension.

Benefit supplement (end-of-service grant): Paid to supplement the survivor settlement.

Funeral grant: Paid when an insured person or an old-age or disability pensioner dies.

Eligible survivors include a widow(er), an adult child, or the person who paid for the funeral.

Death grant: Paid when an insured person or an old-age or disability pensioner dies.

Old-Age Benefits

Old-age pension: 3% of the insured's pensionable salary multiplied by the number of full years of contributions is paid.

The pensionable salary is the insured's average gross monthly earnings in the last five years of employment.

The minimum monthly old-age pension is 202.50 rials.

The maximum monthly old-age pension is 80% of the insured's pensionable salary.

Early pension: A reduced pension is paid depending on the insured's age and gender. For men, the reduction is from 6% (age 59) to 30% (age 45); for women, from 7% (age 54) to 25% (age 45).

Pension supplement (end-of-service grant): A lump sum of the insured's last monthly salary for each year of contributions, up to 10 years, is paid.

Old-age settlement (end-of-service benefit): A lump sum of the insured's last monthly salary for each of the first three years of contributions plus two times the last monthly salary for each additional year of contributions is paid.

Benefit supplement (end-of-service grant): A lump sum of the insured's last monthly salary for each year of contributions, up to 10 years, is paid.

Permanent Disability Benefits

Disability pension: 50% of the insured's earnings when the disability began or the old-age pension the insured is entitled to receive, whichever is greater, is paid.

Pension supplement (end-of-service grant): A lump sum of the insured's last monthly salary for each year of contributions, up to 10 years, is paid.

Disability settlement (end-of-service benefit): A lump sum of the insured's last monthly salary for each of the first three years of contributions plus two times the last monthly salary for each additional year of contributions is paid.

Benefit supplement (end-of-service grant): A lump sum of the insured's last monthly salary for each year of contributions, up to 10 years, is paid.

Survivor Benefits

Survivor pension

Spouse's pension: 25% of the old-age or disability pension the deceased received or was entitled to receive is paid to the widow(er). If there is more than one widow, the pension is split equally.

Orphan's pension: 50% of the old-age or disability pension the deceased received or was entitled to receive is paid to eligible sons and daughters.

Marriage grant: A lump sum of 15 times the orphan's pension is paid.

Other eligible survivors: 25% of the old-age or disability pension the deceased received or was entitled to receive is split equally among other eligible survivors.

The maximum combined survivor pension is 100% of the old-age or disability pension the deceased received or was entitled to receive.

Pension supplement (end-of-service grant): A lump sum of the insured's last monthly salary for each year of contributions, up to 10 years, is paid.

Survivor settlement (end-of-service benefit): A lump sum of the insured's last monthly salary for each of the first three years of contributions plus two times the last monthly salary for each additional year of contributions is paid.

Benefit supplement (end-of-service grant): A lump sum of the insured's last monthly salary for each year of contributions, up to 10 years, is paid.

Funeral grant: If the deceased was employed at the time of death, a lump sum of the last three months of his or her covered earnings is paid; if the deceased was a pensioner, a lump sum of three months of the old-age or disability pension is paid.

The maximum funeral grant is 1,000 rials.

Death grant: If the deceased was employed at the time of death, a lump sum of the last three months of his or her covered earnings is paid; if the deceased was a pensioner, three months of the old-age or disability pension is paid.

Administrative Organization

Minister of Manpower (https://www.manpower.gov.om/) provides general supervision.

Public Authority for Social Insurance (https://www.pasi.gov.om/), managed by a 13-member board of directors chaired by the Minister of Manpower, administers the program and collects contributions.

Sickness and Maternity

Regulatory Framework

First law: 1973 (labor law).

Current laws: 1996 (constitution) and 2003 (labor law).

Type of program: Universal (medical benefits) and employer-liability (cash benefits) system.

Coverage

Universal (medical benefits): Citizens of Oman.

Employer liability (cash benefits): Employees covered by the labor code.

Exclusions: Self-employed persons, family labor, and household workers.

Special system for certain public-sector employees.

Source of Funds

Insured person

Universal (medical benefits): None.

Employer liability (cash benefits): None.

Self-employed person

Universal (medical benefits): None.

Employer liability (cash benefits): Not applicable.

Employer

Universal (medical benefits): None.

Employer liability (cash benefits): The total cost.

Government

Universal (medical benefits): The total cost.

Employer liability (cash benefits): None.

Qualifying Conditions

Cash sickness benefit (employer liability): Must be currently employed and provide a medical certificate.

Cash maternity benefit (employer liability): Must have at least 12 months of continuous employment with the same employer.

Medical benefits (universal): There is no minimum qualifying period.

Sickness and Maternity Benefits

Sickness benefit (employer liability): 100% of the employee's last gross earnings is paid for the first 15 days of sick leave; 75% from the 16th to the 25th day; 50% from the 26th to the 35th day; and 25% from the 36th to the 45th day.

Maternity benefit (employer liability): 100% of the employee's last gross earnings is paid for seven weeks.

Workers' Medical Benefits

Public hospitals and health facilities provide free primary, secondary, and tertiary medical services.

Dependents' Medical Benefits

Medical benefits for dependents are the same as those for workers.

Administrative Organization

Cash benefits: Ministry of Manpower (https://www.manpower.gov.om/) provides general supervision.

Medical benefits: Ministry of Health (https://www.moh.gov.om/) provides general supervision and coordinates medical care.

Government hospitals, local hospital, and health centers provide medical services.

Work Injury

Regulatory Framework

First law: 1977.

Current law: 1991 (social insurance), implemented in 1997.

Type of program: Social insurance system.

Coverage

Citizens of Oman employed in the private sector.

Exclusions: Foreign nationals, household workers, self-employed persons, and citizens of Oman working abroad.

Special system for public-sector employees.

Source of Funds

Insured person: None.

Self-employed person: Not applicable.

Employer: 1% of gross monthly covered payroll.

The minimum monthly earnings used to calculate contributions are 325 rials if working in Oman; 200 rials if working abroad.

The maximum monthly earnings used to calculate contributions are 3,000 rials if working in Oman; 1,000 rials if working abroad.

Government: None.

Qualifying Conditions

Must be assessed with a work injury or occupational disease.

Temporary Disability Benefits

100% of the insured's last monthly earnings divided by 30 is paid daily for the first six months; 75% for the next six months; thereafter, a medical committee assesses the capacity for work to determine whether the temporary disability benefit is extended or a permanent disability pension is awarded.

Permanent Disability Benefits

Permanent disability pension: For a total (100%) disability, 75% of the insured's average monthly earnings or the old-age pension the insured is entitled to receive, whichever is greater, is paid.

The minimum monthly permanent disability pension is 202.50 rials.

Partial disability: For an assessed degree of disability of at least 30% but less than 100%, the full permanent disability pension multiplied by the assessed degree of disability is paid; for an assessed degree of disability of less than 30%, a lump sum of 36 months of the full permanent disability pension multiplied by the assessed degree of disability is paid.

Survivor Benefits

Survivor pension: See Old Age, Disability, and Survivors.

Administrative Organization

Minister of Manpower (https://www.manpower.gov.om/) provides general supervision.

Public Authority for Social Insurance (https://www.pasi.gov.om/), managed by a 13-member board of directors chaired by the Minister of Manpower, administers the program and collects contributions.

Family Allowances

Regulatory Framework

First and current law: 2014 (social assistance).

Type of program: Social assistance system.

Coverage

Needy citizens of Oman.

Source of Funds

Insured person: None.

Self-employed person: None.

Employer: None.

Government: The total cost.

Qualifying Conditions

Income support (income tested): Paid to assist with care, mobility, and additional medical costs for persons with certain chronic diseases.

Income test: Individual or family income must not exceed a certain limit.

Cash assistance (income tested): Paid to orphans, widows, abandoned women, older persons, persons with disabilities, and certain other families not receiving income from work.

Income test: Family income and assets must not exceed certain limits.

Immediate cash assistance: Paid to vulnerable persons in crisis and emergency situations, or victims of a natural or man-made disaster in dire need of temporary assistance. The claim must be made within 15 days after the event.

Housing assistance: Paid to individuals or families whose house is damaged or destroyed by a catastrophe.

Death grant: Paid if the deceased died as a result of a natural or man-made disaster.

Family Allowance Benefits

Income support (income tested): 20 rials to 100 rials a month is paid depending on the level of care needed.

Cash assistance (income tested): 80 rials to 264 rials a month is paid depending on household circumstances and the number of eligible beneficiaries.

Immediate cash assistance: 100 rials to 300 rials is paid depending on family composition.

Housing assistance: 400 rials to 600 rials is paid depending on family composition.

Benefits may be paid as a lump sum or in periodic payments.

An additional lump-sum benefit of up to 2000 rials may be paid under certain conditions to purchase property.

Death grant: 1,500 rials is paid to an eligible survivor; 1,000 for a dependent child.

Administrative Organization

Ministry of Social Development (http://www.mosd.gov.om/) provides general supervision and administers the program.