OMAN BOOSTS PENSIONS

UNCLAS MUSCAT 000274

SIPDIS

SENSITIVE
SIPDIS

STATE FOR NEA/ARP, EEB/IFD/OMA

E.O. 12958: N/A
TAGS: ECON SOCI PGOV MU
SUBJECT: OMAN BOOSTS PENSIONS

REF: MUSCAT 148


1. (U) As part of the government's overall response to public
grumbling over the rising cost of living, Sultan Qaboos
ordered an increase in pension rates for government retirees,
effective from the end of March 2008. Following a similar
tiered format for the recent public sector wage hike
(reftel),the Sultan decreed a 35% increase for those
receiving the minimum monthly pension amount, a 17% increase
for those receiving between 100-200 rials (USD 260-520) per
month, a 10% increase for those receiving between 200-300
rials (USD 520-780),and a 5% increase for those receiving
over 300 rials (USD 780). The Sultan also granted an
exemption for retired and active personnel in the armed
forces and the Royal Guard of Oman from paying the balance of
armed forces housing loans up to 3,000 rials (USD 7,800) for
those earning or receiving less than 300 rials per month.
For the remaining value of the loans over this amount, the
Sultan granted a 50% exemption.


2. (SBU) Not surprisingly, these measures received ample
laudatory press coverage. Sheikh Mohammed bin Abdullah
al-Harthy, Minister of Civil Service and Deputy Chairman of
the Pension Fund for Civil Service Employees, noted to the
media that the Sultan "has always been keen on improving the
living standards and ensuring the welfare of his subjects."
English-language daily "Oman Tribune" also exalted the
"generous" move on its editorial page.


3. (SBU) Comment: By announcing an increase in retiree
payments, the government has helped to diffuse complaints
over low pensions that have been simmering for years on
Internet chatrooms and coffeeshops around the Sultanate.
Responses following the directive have been positive,
evidence of the government's use of a compliant media to
showcase that the Sultan is in tune with the people on cost
of living issues. End Comment.
GRAPPO