MUSCAT : A study conducted by Oman’s Social Protection Fund has found that early retirement for women after 30 years of service could cost at least RO 60,000 per beneficiary over five years, with higher costs for those in senior job grades, the fund’s chairman said on Monday.
Eng. Salim bin Nasser Al Aufi, Chairman of the Board of Directors of the Social Protection Fund, disclosed the findings while responding to a proposal raised at the Together Forward forum to reduce the mandatory retirement threshold for women from 30 years of service to 25 years.
Speaking during the session, Al Aufi who is also the Minister of Energy and Minerals said the study showed that the financial burden would be significant, particularly at mid-level grades, and would rise further for women in higher grades due to longer benefit periods and higher pension payouts.
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He explained that employees contribute a defined percentage of their salaries to the system, and exiting the workforce earlier than planned creates a funding gap that must be covered by the Social Protection Fund. The current system, he said, is actuarially calculated on the basis that women retire at the age of 55 or after completing 30 years of service.
“Any change to this structure would have broader implications, as the cost of early retirement would ultimately be borne by other contributors to the fund,” Al Aufi said.
He added that any departure from employment before the legally defined retirement age carries financial consequences that must be addressed through specific mechanisms. Among the options under consideration is a proposal to be submitted to the Council of Ministers that would allow women to opt for early retirement in exchange for higher contribution rates from the start of their employment.
Al Aufi stressed that such an option would not apply universally but would be limited to women who are unable to continue working and choose early retirement, rather than those who are able to remain in the workforce.
The Together Forward forum brings together policymakers and members of the public to discuss social and economic issues, including labour market participation and the long-term sustainability of social protection systems.
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