Social Protection Law represents a decisive shift towards sustainability and comprehensive coverage, addressing structural weaknesses that had accumulated over decades and threatened the resilience of the welfare system.
The importance of this reform lies in its response to three persistent challenges. First, the previous system was institutionally fragmented, with multiple pension and insurance schemes operating in parallel and without coordination. Second, actuarial sustainability was increasingly uncertain, as unfunded liabilities grew and long-term obligations became difficult to model. Third, social protection coverage remained uneven, leaving gaps for vulnerable groups despite the presence of subsidies and compensation mechanisms. Recognising these risks, Oman moved to modernise its welfare architecture in a way that aligns social protection with long-term fiscal responsibility.
This reform also reflects a broader and positive recognition of the need for continuous social reform. By acknowledging that existing arrangements were no longer sufficient for a changing economy and society, the government demonstrated a willingness to adapt policy proactively rather than reactively. The Social Protection Law is therefore not only a technical reform, but also a signal of institutional maturity and responsiveness to social realities.
The Law introduces a coherent and unified system. This combines contributory social insurance with a government-funded social protection floor. This dual structure strengthens financial sustainability while expanding social equity.
Contributions are aligned with benefits over the working life, reducing actuarial risk, while non-contributory benefits ensure minimum income security for citizens who fall outside or below contributory schemes.
For Omani citizens, the law establishes five mandatory social insurance programmes. The Old Age, Disability and Death branch provides protection in retirement and in cases of permanent disability or death. Employment security offers unemployment insurance to support workers during job transitions. The Work Injuries and Occupational Diseases branch compensates workplace injuries and job-related illnesses.
The Sickness and Unusual Leaves branch ensures income replacement during temporary absences, including sick and maternity leave. A separate maternity insurance branch further strengthens protections for working mothers. Crucially, participation in the Old Age, Disability and Death branch is mandatory for all workers, including part-time, temporary and self-employed individuals, ensuring broad and inclusive coverage regardless of employment type.
The law also modernises protections for non-Omani workers. Foreign employees are mandatorily covered under work injury and occupational disease insurance. Significantly, the replacement of the end-of-service gratuity with a mandatory PF introduces a structured and transparent savings mechanism for expatriates, bringing Oman’s labour protections closer to international best practices.
While the overall design of the Social Protection Law is strong, earlier public debate raised one concern regarding the universal old-age pension. The benefit was provided to all citizens aged 60 and above without any income threshold. This meant that elderly individuals with very high monthly incomes received the same support as those with limited financial means. Many viewed this as inconsistent with the intended purpose of the benefit, which is to support basic living needs in old age rather than supplement already substantial incomes.
The Sultanate of Oman’s response to this concern deserves recognition. After listening to public feedback, the policy was amended to introduce a salary limit. Elderly citizens earning more than RO 1,250 per month are now excluded from receiving the RO 115 universal old-age pension, while those below this threshold remain eligible.
At present, students receive no consistent monthly allowance to cover essential expenses such as transportation, housing, or rent. While some government-funded universities offer limited assistance, coverage remains uneven. The National Subsidy Fund provides financial support for certain students enrolled in private universities, but eligibility is determined by highly restrictive income-and-household-size criteria.
This does not undermine the strength of the Social Protection Law, but it highlights a gap worth addressing. Most citizens over the age of 60 are retired and often already receive pensions or other income sources, whereas students face financial strain at a formative stage of skill and human capital development.
The Law remains a landmark reform that corrected deep structural weaknesses in the welfare system. Its strength lies not only in its design, but in its demonstrated capacity to adapt. With carefully targeted adjustments, particularly in balancing support across generations, the law can achieve even greater equity while remaining fiscally responsible.
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