Oman
Worked in Oman as an expat? You almost certainly won't get a local state pension — that's reserved for citizens — but you're likely owed an end-of-service gratuity: a lump sum based on your years of service and final salary, paid when you leave. Here's how Oman's system works and what to check before you go.
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Overview
Oman operates a unified social protection system through the Social Protection Fund (SPF), established under Royal Decree No. 52/2023 (Social Protection Law) and effective from 1 January 2024. The SPF consolidated 11 previously fragmented pension funds and social insurance schemes into a single entity, covering old-age, disability, death, work injuries, employment security, maternity, and sick leave insurance for Omani nationals. The pension formula under the new law is 2% × years of service × salary (with transitional guarantees for those with pre-2024 service). A non-contributory Old Age Benefit of OMR 115/month is paid to all Omani residents aged 60+, regardless of contribution history.
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Foreign (non-Omani) workers are not covered by the contributory pension scheme but are entitled to work injury insurance (from January 2024), maternity leave insurance (from July 2024), sick leave insurance (from July 2026, delayed from July 2025 by Royal Decree 60/2025), and a mandatory Provident Scheme (savings fund) replacing end-of-service gratuity, deferred to July 19, 2027. Until then, expatriates receive end-of-service gratuity calculated at one month's basic salary per year of service under the Labour Law. The SPF is also responsible for non-contributory social protection benefits including Child Benefit (OMR 10/month), Disability Benefit (OMR 130/month), Orphans and Widows Benefit, and Family Income Support.
A landmark Personal Income Tax Law (Royal Decree No. 56/2025) was enacted in June 2025, effective 1 January 2028, introducing a 5% flat tax on annual income exceeding OMR 42,000 — the first personal income tax in the GCC. Pensions and end-of-service benefits are included in taxable income, and employers (including pension funds) are required to withhold tax at source. The retirement age is set to gradually increase from 60 to 65 at a rate of one year every seven years from 2024.
2% per year of service (e.g., 60% for 30 years); maximum 80% of pensionable salary
Two-pillar system: Pillar 1 — SPF mandatory contributory social insurance (old-age pension) for Omani nationals; Pillar 0 — Universal non-contributory Old Age Benefit (OMR 115/month) for all Omani residents aged 60+. Voluntary Provident Scheme (savings) available as supplementary layer for Omanis. Mandatory Provident Scheme for expatriates (from July 2027).
Unified Social Protection Fund (SPF) — defined-benefit social insurance for Omani nationals; fixed-contribution Provident Scheme for expatriates; non-contributory social protection benefits for all residents
Employee
7.5% (old age/disability/death) + 0.5% (employment security) = 8% total for Omani employees
Employer
11% (old age/disability/death) + 1% (work injuries) + 0.5% (employment security) + 1% (maternity, from July 2024) + 1% (sick/other leaves, from July 2026) = 14.5% total for Omani employees
Self-Employed
18.5% total (7.5% insured share + 11% employer share) — voluntary for self-employed Omanis
Notes
Contributions calculated on gross monthly wage. Maximum contributory wage ceiling: OMR 3,000/month. For Omanis working in GCC under extension protection: 18.5% total (7.5% employee + 11% employer). For Omanis at GCC Secretariat General: 21.5% total (7.5% employee + 14% employer). Expatriate workers: employer pays 9% of basic wage to Provident Scheme from July 2027; employer also pays 1% maternity (from July 2024) and 1% sick leave (from July 2026) on gross salary up to OMR 3,000.
Common questions
Do expats get a pension in Oman?
Expats generally can't access Oman's state pension, which is reserved for citizens. Instead, most private-sector employees earn an end-of-service gratuity — a lump sum based on your length of service and final basic salary, paid by your employer when your contract ends.
How is end-of-service gratuity calculated in Oman?
Gratuity is typically a set number of days' basic salary for each year of service, often rising the longer you stay and capped at a maximum. The exact formula depends on your contract and length of service — you can estimate yours with our free Gulf End-of-Service Gratuity calculator.
Can I keep building a pension while working in Oman?
Often yes — many expats make voluntary contributions to their home-country state or private pension while in the Gulf, so those years aren't "dark years" for pension accrual. The options depend on your home country, so check what voluntary contributions it allows.