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Oman’s Social Protection Law introduces new mechanism to include previous service periods

The Social Protection Law has approved a new mechanism within its executive regulations, allowing the inclusion of previous service periods, and thereby enhancing the fairness of the insurance system.

Oman News Agency

info@thearabianstories.com

Monday, June 23, 2025

MUSCAT: This mechanism enables insured individuals to count their full years of service, whether completed inside or outside the Sultanate of Oman, as part of their current subscription period. This measure applies to the period from January 2024 to December 2026 and is expected to benefit a wide range of categories, including public and private sector employees and self-employed individuals. It also includes flexible payment mechanisms and clear regulations that reflect both governance and facilitation.
The inclusion mechanism covers various cases of prior service:


Unregistered service periods include actual service periods that were not previously recorded in retirement or social insurance funds. The insured must pay both their share and the employer’s share of contributions at a rate of 18.5 percent, calculated based on the salary at the time of application.


Previously registered service with bonus paid: Insured individuals may include periods for which they received a retirement bonus, subject to payment of the same 18.5 percent contribution.


Service periods with pension paid: To include periods for which a retirement pension was received, all pension payments must be repaid with an annual interest of 5.5 percent. The cash guarantee will be calculated in accordance with Clause (3) of Article (74) of the law.


Naturalised citizens: Individuals who acquired or regained Omani citizenship may include their service periods by paying contributions under the same 18.5 percent rate.
Self-employed service periods: Includes time served as an employer since the enforcement of Royal Decree No. 44/2013. Contributions are also calculated at 18.5 percent, based on the relevant income bracket.


Disability pension recipients: Insured persons who previously received a total occupational or non-occupational disability pension may also include service periods preceding their pension eligibility. If they resumed work while receiving the pension, they are required to repay all pension amounts received during that overlap, along with a 5.5 percent annual interest.


In both disability-related cases, once the inclusion is processed, individuals are treated as if they had never received a pension when calculating future entitlements.
This approach reflects a qualitative shift in the social protection system, ensuring the continuity of insurance rights for beneficiaries and encouraging the documentation and regulation of work within an institutional framework that preserves rights and enhances the efficiency of the retirement system.

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