A social insurance scheme that covers the risks associated with ageing, disability, and non-occupational death.
Old Age, Disability, and Death
Categories included:
- The scheme is mandatory to Omani workers in all sectors, including those on temporary contracts, training contracts, part-time workers, retired workers on duty, members of the Oman Council and municipal councils, self-employed Omanis and alike, Omani workers in Gulf Cooperation Council countries who are covered by insurance protection extension schemes.
- Optionally, it includes Omanis working abroad and those in similar capacities in addition to Omanis other than those mentioned.
1. Old Age Pension:
The old-age pension provides insurance protection to the insured by paying a monthly pension to the insured when he or she reaches the age of 60.
The value of Old Age Pension:
Old age pension is calculated using the following formula:
2% × the average future value of wages × the succeeding period of service starting from the Social Protection Law’s entry into force.
+
2% ×Last Salary Revalued till date of entitlement × the period of service prior the Social Protection Law’s entry into force
As long as the pension does not fall below the highest of the Guarantee 1 or 2 listed below:
- Guarantee 1: is a monetary security for the insured person who has completed his or her service of 20 years or more (and reparation according to his or her previous pension system) upon the promulgation of the law and who have met all of the conditions of entitlement to the pension defined in his or her previous pension system. Under the terms of the Social Protection Law, the warranty is calculated on the basis of the pension formula according to the previous pension plan for the previous period of service, which is calculated on the date of Social Protection Law’s entry into force.
- Guarantee 2: is a cash guarantee for all insured who have a prior term of service including those who have completed 20 years (Category with Warranty 1). The cash is entitled in case of reaching the age of elderly or earlier age that is not subject to the deduction, disability or death ratios. It is calculated on the basis of the pension formula under the previous pension plan for the period of prior service, which is calculated on the effective date of the Social Protection Law with no wage minimum.
Eligibility Conditions:
- Have reached the age of the elderly.
- Have a recognised service duration.
- Not being a pensioner (previously retired).
Required data for pension distributions:
- Civil number in addition to confirming the authenticity of contact, residence and other information in the civil record of the Royal Oman Police.
- The beneficiary must have a personal bank account.
How to apply:
You need to access the personal account in the Social Protection Fund and apply for the pension on the date that the Fund will announce.
2. Early retirement pension which is exempted from deduction ratios:
The Early retirement pension which is exempted from deduction ratios is available to the insured person: men by the age of 60, women by the age of 55, and upon fulfilment of particular service periods. It intends to pay monthly pensions to beneficiaries. The law sets special conditions for the eligibility of certain categories (persons with disabilities, workers in hazardous and arduous jobs, and those affiliated with the military and security services).
Pension value:
An early retirement pension that is exempted from deduction ratios is calculated in accordance with the above-mentioned old-age pension formula.
Eligibility Conditions:
- Not being a pensioner (previously retired).
- To be classified as one of the following:
| Category | Men | Women | Persons with disabilities* | Hazardous and arduous labor ** | Security and military services*** |
|---|---|---|---|---|---|
| Age | 60 | 55 | 50 | 55 for men 50 for women | 55 |
| period of service | 15 | 20 |
Required data for pension distributions:
- Civil number in addition to confirming the authenticity of contact, residence and other information in the civil record of the Royal Oman Police.
- The beneficiary must have a personal bank account.
How to apply:
You need to access the personal account in the Social Protection Fund and apply for the pension on the date that the Fund will announce. 3. Early retirement pension subject to deduction ratios:
The early retirement pension subject to deduction ratios offers a monthly income for the insured persons: men who reach the age of 55 and women who reach the age of 50 after the completion of certain service periods. The scheme seeks to pay monthly pensions to the beneficiaries. In addition, the law specifies special conditions for the entitlement of certain categories (those with disabilities, employees in hazardous and arduous occupations, members of military and security services).
Pension value:
An Early retirement pension which is subject to deduction ratios will be calculated in accordance with the above-mentioned old-age pension calculation formula.
The pension is deducted by a rate based on the number of years between the age at the time of application for early retirement and the early age not subject to the deduction ratios.
The rate is 5% for each of the first five years, and 1% for years beyond that.
Eligibility Conditions:
- Not being a pensioner (previously retired).
- End of service.
- Submitting a request for pension to the fund.
- To be classified as one of the following:
| Category | Men | Women | Persons with disabilities | Hazardous and arduous jobs | Military and Security jobs | All categories* |
|---|---|---|---|---|---|---|
| Age | 55 | 50 | 45 | Men 50 Woman 45 | 50 | - |
| Period of Service | 20 | 20 | 15 | 20 | 20 | 30 |
* All categories are entitled to apply for early retirement subject to deduction ratios after completing thirty (30) years of actual service without regard to age.
4.Early retirement pension (for categories excluded from the new retirement conditions):
The early retirement pension permits the insured persons who have completed at least 20 years at the time when the social protection law is issued on July 23, 2023 to retire at any time (and (seek compensation under their former pension system), provided they have fulfilled all of the conditions of entitlement to the pension set out in its previous pension system by December 31, 2023, by exempting them from the age and the duration of service specified set out in the Social Protection Law.
Pension value:
Highest among
In the event of eligibility, pension under the Social Protection Law based on the foregoing formulas (old-age pension, early retirement pension not subject to deduction ratios, early retirement pension subject to deduction ratios)
OR
Guarantee 1 is calculated on the basis of the pension formula under the previous pension scheme for the duration of prior service and is calculated on the effective date of the Social Protection Law on January 1, 2024.
Eligibility Conditions:
- They have completed 20 years of service as of the date of the law’s promulgation (and they accommodate according to their former pension system).
- They meet the requirements for pension eligibility under the previous retirement law.
- Not a pensioner (previously retired).
- End of service.
- Filing a pension request to the fund.
Required data for pension distributions:
- The civil number in addition to confirming the authenticity of contact, residence and other information in the civil record of the Royal Oman Police.
- The beneficiary must have a personal bank account.
How to apply:
You need to access the personal account in the Social Protection Fund and apply for the pension on the date that the Fund will announce.
5. Non-occupational disability pension
The disability pension is provided to the insured if it is confirmed that he is unable to work due to incapacity caused by a non-occupational reason or non-job-related health problems that prevent the insured from continuing to serve.
Pension value:
(50% × Relative average of wages*) + (0.5% × years of service), granted that the sum is not less than the old-age pension (without calculating the deduction ratio).
*Relative average wages = [(last reassessed salary × years of service prior to law enforcement)] + (average future value of wages × years of service subsequent to law enforcement) /total years of prior and subsequent service.
In the event that the conditions set out below are not met, the insured person shall be entitled to a pension calculated in accordance with the old-age pension formula without calculating deduction ratios.
Eligibility Conditions:
- Not being a pensioner (previously retired).
- End of service.
- Fulfilment of the requirements of the Social Protection Law, which stipulates:
- If the period of contribution to the old-age, disability and death insurance branch is at least six (6) consecutive months prior to the occurrence of the disability or death.
- If the period of contribution to the old-age, disability and death insurance branch is twelve (12) intermittent months with (3) three consecutive months of contribution at least before the occurrence of the disability or death.
- If the disability or death did not occur after fulfilling the minimum contribution period referred to in the preceding two paragraphs and the insurance contribution was stopped for any reason, the insured person or the beneficiaries shall be – as the case may be, entitled for old-age pension if the disability occurs within one year from the date of the discontinuation of the insurance contribution before the insured person reaches the age of the elderly, or if the death occurs within one year from the date of the discontinuation of the insurance contribution.
Required data for pension distributions:
- Proof of incapacity by decision of the competent medical commission or licensed medical authority.
- The civil number in addition to confirming the authenticity of contact, residence and other information in the civil record of the Royal Oman Police.
- The beneficiary must have a personal bank account.
How to apply:
You need to access the personal account in the Social Protection Fund and apply for the pension on the date that the Fund will announce .
6. Non-professional death pension:
The “death pension” shall be paid upon the death of the insured person to their beneficiaries who meet the requirements of the benefit specified in the law. The pension shall be distributed evenly to them.
Pension value:
(50% × average relative wage *) + (0.5% × years of service), provided that the sum shall not be less than the old-age pension (without calculating the deduction ratio).
Eligibility Conditions:
- The deceased has contributed to the branch.
- Not being a pensioner (previously retired).
Required data for pension distributions:
- Registration of the death of the insured person in civil status record.
- The civil number in addition to confirming the authenticity of contact, residence and other information in the civil record of the Royal Oman Police.
- The beneficiary must have a personal bank account.
How to apply:
You need to access the personal account in the Social Protection Fund and apply for the pension on the date that the Fund will announce.