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The Social Protection Fund in Oman has made changes to its contribution rates for Omani citizens who are both working in the UAE and covered by the unified extension protection system, stated the General Pension and Social Security Authority (GPSSA).


The new contribution rate as of 1st January 2024 for Omani’s covered by the extension protection system has become 18.5 percent, out which both government and private sector employers/entities bear 11 percent and the insured bears 7.5 percent. 


The unified extension protection system was formed by a council of ministers on 22nd July 2007 following the issuance of Cabinet Resolution No. 18 of 2007, which is when the GPSSA was delegated to become the executive body for the system in the UAE. Ever since, GCC nationals employed in UAE-based entities must register with the GPSSA in order to receive their retirement pension and end-of-service gratuity from their home countries and as per its federal pension law and regulations.


From there, Omani employees became eligible to receive both the end-of-service gratuity and pension benefits, given that their entity is subject to the system and contribution funds are made in a timely manner. It is worth mentioning that an insured's monthly salary cap is 3,000 Omani Rial (which is equivalent 28,620.85 UAE Dirhams), subject to contribution. 


Moreover, the Protection Fund determined that the contribution percentage for Omani citizens working in the Secretariat General of the Gulf Cooperation Council and its affiliated offices in any of the GCC countries is 21.5 percent, out of which the Secretariat General of the Gulf Cooperation Council bears 14 percent and the insured bears 7.5 percent.


Additionally, Omani citizens who have voluntarily opted to participate in the ‘job security’ system, which is similar to the unemployment system, bear an additional one percent of the total salary, alongside the deducted monthly contribution percentage. 


UAE-based employers are expected to register their Emirati employees within 30 days from the date of them joining the entity and to adhere to end-of-service procedures within 30 days. Additionally, entities are mandated to pay the due contribution payments on behalf of the insured and themselves within the first 15 days of each month. 


The Social Protection Fund in Oman have set several conditions in order to be able to register insured individuals in a pension authority however, some of which includes: age - the participant should not be less than 15 years old when registering for the first time; the insured must have an employment contract subject to the extension protection system and registration applications must be submitted within the first 12 months of employment, anything after that time period will be denied.