Social Protection Fund (formerly PASI) vs Private Pension in Oman: 2026

PASI, the Public Authority for Social Insurance, ran the state pension and social insurance scheme for Omani nationals. Royal Decree 52/2023, the Social Protection Law, created the Social Protection Fund (SPF) to take over that role, and Royal Decree 60/2025 later postponed the start of three branches. The fund charges contributions branch by branch: pension, work injury, employment security, sick leave and maternity.

For an Omani employee the employee contribution is 8% of the gross wage (7.5% pension under Article 70 and 0.5% employment security under Article 116). From 19 July 2026, when the sick-leave branch starts, the employer contribution is 14.5% (11% pension, 1% work injury under Article 90, 0.5% employment security, 1% sick leave under Article 123 and 1% maternity under Article 128). The pension and work-injury branches stop at a monthly wage ceiling of OMR 3,000.

For what the fund asks of an employer and how payroll handles it, see PASI in Oman, now the Social Protection Fund.

Omani nationals are covered. Cover for non-Omani employees is brought in branch by branch. Sick-leave insurance (chapter six) applies from 19 July 2026, at 1% of the gross wage paid by the employer, to Omani employees and, for the categories of non-Omani employees that the fund's board sets (Article 121), to non-Omani employees. Under Royal Decree 60/2025, which amended Article VI of Royal Decree 52/2023, the compulsory savings branch for expatriates (Article 139(1)), 9% of basic wage paid by the employer, starts on a date the fund's board sets, no later than 19 July 2027, and work injury for non-Omanis starts five years after 19 July 2023, on 19 July 2028.

Benefits, qualifying periods and the employer-paid savings branch for expatriates are set by the Social Protection Law and the fund; confirm them with the fund before quoting them to an employee.

Some employers in Oman offer a private pension or savings plan as an additional benefit, either to supplement the state scheme for Omani employees or to provide a retirement benefit for expatriate staff. Private plans are voluntary. The fund's own contributions are separate and mandatory where they apply, including the employer-paid savings contribution for expatriates once it starts.

A private defined-contribution plan, where employer and employee each pay a fixed percentage of salary into an investment account and the employee takes the balance on leaving, is one common structure. For Omani employees, a private top-up can bridge the gap between what the state scheme pays at retirement and the income the employee was used to. Benefits, qualifying periods and retirement ages under the fund are set by the Social Protection Law and the fund itself; confirm them with the fund before quoting them to an employee.

Article 61 of the Labour Law (Royal Decree 53/2023) applies to workers who are not covered by the Social Protection Law. An Omani employee covered by the fund's pension is outside it, so no gratuity accrues for them and SmartPRO Hub does not provision one. For other workers, gratuity is a lump sum paid when the worker leaves, calculated from years of service and basic salary; our Oman Labour Law guide sets out the current rule.

For non-Omani employees the position changes with the fund's savings branch. SmartPRO Hub applies the reading that, from the date that branch starts (no later than 19 July 2027, earlier if the fund's board sets it), an expatriate's later service is covered by the savings contribution instead and stops accruing under Article 61. That reading is still under legal review, so confirm it before relying on it.

SmartPRO Hub's gratuity estimate applies the scope for Omani employees: it does not accrue gratuity for an Omani employee covered by the fund. This guide is general information, not legal advice.

SmartPRO Hub calculates Social Protection Fund contributions in every pay run, for each employee from the date each branch applies to them.