Oman Pension Guide 2026

PASI Old-Age Pension (Omani Nationals)

The Public Authority for Social Insurance (PASI) provides a defined-benefit old-age pension for Omani nationals who meet the eligibility criteria:

• Retirement age (men): 60 years
• Retirement age (women): 55 years
• Minimum contribution period: 15 years (180 months) of contributions
• Early retirement: Available from age 50 (men) or 45 (women) with 20+ years of contributions, with a reduced pension

Pension Calculation

The PASI old-age pension is calculated as: 2.5% of average basic salary (last 5 years or best 5 years of the last 10) multiplied by the number of contribution years, up to a maximum of 80% of the average basic salary. The basic salary cap for pension purposes is OMR 3,000/month (same as the contribution cap).

Example: An Omani national retires at 60 after 25 years of contributions. Average basic salary in the last 5 years: OMR 1,800/month. Pension = 2.5% × 25 × OMR 1,800 = OMR 1,125/month (62.5% of basic salary). Maximum pension for someone with OMR 3,000 basic salary and 32+ years: OMR 2,400/month (80% cap).

PASI Benefits Covered

PASI provides comprehensive social insurance coverage for Omani nationals:

• Old-age pension: Monthly pension after retirement at 60/55
• Disability pension: For total/permanent disability before retirement (60% of basic salary)
• Survivor's pension: For dependents of a deceased contributor (75% of the pension the deceased would have received)
• End-of-service benefit: Lump sum for those who leave before retirement age (contributions + returns)
• Work injury benefits: Medical care and compensation for workplace injuries

Expatriate End-of-Service Gratuity

Expatriate workers in Oman are not covered by PASI. Instead, they receive an end-of-service gratuity under the Oman Labour Law (Royal Decree 35/2003):

• First 3 years: 15 days' basic salary per year of service
• After 3 years: 30 days' basic salary per year of service
• Maximum total: 6 months' basic salary
• Unfair dismissal: Additional compensation may be awarded by the labour court

Example: An expat works in Oman for 8 years with a basic salary of OMR 1,500/month. Years 1–3: 3 × 15/30 × OMR 1,500 = OMR 2,250. Years 4–8: 5 × 30/30 × OMR 1,500 = OMR 7,500. Total gratuity: OMR 9,750 (capped at 6 months = OMR 9,000).

Private Pensions and Retirement Savings

Individuals in Oman can supplement their retirement through:

• Voluntary PASI top-ups: Omani nationals can make additional voluntary contributions to increase their pension
• Private pension plans: Insurance companies offer personal pension plans with tax-free growth and withdrawal
• Investment portfolios: Stocks (Muscat Stock Exchange), mutual funds, ETFs, and real estate
• International pensions: Expatriates can continue contributing to home-country pension schemes (e.g. UK SIPP, US IRA, Canadian RRSP)

Since there is no tax on investment returns or withdrawals, Oman is highly efficient for retirement savings accumulation.