Changes in contribution rates for Omani citizens employed and covered by the unified extension protection system in the UAE

Changes in contribution rates for Omani citizens employed and covered by the unified extension protection system in the UAE

Abu Dhabi: 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