The social security in Oman is regulated by a law of 1991 implemented in 1992. It provides for a social insurance system.
The system covers all citizens of Oman aged 15 to 59, employed in the private sector under a permanent work agreement or Omani citizens working in one of the Gulf Cooperation Council countries (Bahrain, Kuwait, Qatar, Saudi Arabia, United Arab Emirates). Voluntary coverage is available for Omani citizens working abroad. Foreign workers, household workers, self-employed persons and artisans are excluded from the system.
Funds are contributed by both the insured person and its employer in the following proportions: (i) Insured person: 6.5% of monthly basic salary. ; and (ii) Employer: 9.5% of monthly basic salary. The minimum monthly earnings used to calculate contributions are 120 rials (approximately USD 310) for citizens working in Oman and 200 (approximately USD 520) rials for citizens working abroad. The maximum monthly earnings used to calculate contributions for citizens working in Oman are 3,000 rials (approximately USD 7800) and 1,000 rials (approximately USD 2600) for citizens working abroad. Further, the government contributes 2% of monthly basic salary.
The funds are available at age 60 with at least 180 months of paid contributions in case of men or age 55 with at least 120 months of paid contributions in case of women. Early pension is possible as age Age 45 to 59 with at least 240 months in case of men or 180 months in case of women of paid contributions.
The old-age benefit consists of a pension of 2.5% of the insured's average wage in the last 5 years of employment multiplied by the number of full years of contributions. The minimum pension is 100 rials (approximately USD 260). The maximum pension is 80% of the pensionable salary. In case of early pension, the pension is reduced according to age and gender. For men, the reduction is from 6% (age 59) to 30% (age 45); for women, the reduction is from 7% (age 54) to 25% (age 45).
The system is administered by (i) the Minister of Manpower (http://www.manpower.gov.om), which provides general supervision; and (ii) the Public Authority for Social Insurance (http://www.taminat.com), managed by a nine-member board of directors chaired by the Minister of Manpower, which administers the program.
Source:Social Security Programs Throughout the World: Asia and the Pacific, 2010, available at http://www.ssa.gov/policy/docs/progdesc/ssptw/2010-2011/asia/index.html