MUSCAT: The International Labour Organisation (ILO), a specialised agency, has applauded landmark measures enshrined in the new Social Protection Law enacted by the Omani government last week as setting a new benchmark for countries in the Arabian Gulf region.
Royal Decree 52/2023 promulgating the Social Protection Law encompasses a comprehensive set of reforms centring on the creation of a single national contributory pension system designed to serve all workers in the public and private sectors.
Furthermore, for the first time in the Gulf region, it envisions the establishment of a social insurance scheme for maternity and paternity, and sickness cash benefits, the Geneva-headquartered institution said in a press statement.
"We congratulate the government, employers and workers in Oman for achieving this major milestone,” said Ruba Jaradat, ILO Regional Director for the Arab States.
“The new legislation sets a new vision for social protection in Oman and paves the way towards universal social protection in the Sultanate of Oman, establishing Oman as a reference for other countries in the region. Inclusive, comprehensive, equitable and sustainable social protection systems are critical for countries to further ongoing social and economic transformations. Oman is showing that ambitious change in the region is possible, when it is rooted in international labour standards, careful analysis and social dialogue,” she added in the statement.
The new law, the ILO said, represents the culmination of “an ambitious reform process” spearheaded by Tawazun, the National Programme for Fiscal Balance (since rebranded as Estidamah), with the close support of the international agency’s regional office.
It unleashes an array of ground-breaking measures, including some that are a first in the Gulf region, the ILO noted. Notable inclusions: Government-funded universal social protection benefits, including a cash benefit for all children under the age of 18; Universal old age pension for senior citizens over the age of 60; and Universal disability allowance.
Further, by integrating 11 incumbent pension funds into one centralised entity, newly named as the Social Protection Fund (SPF), significant cost-savings and efficiency enhancements will accrue across the social protection ecosystem, it said.
Also, for the first time, the new law expands protections to the sizable expatriate workforce in Oman, affirming the government’s continued efforts to bring local laws into alignment with international labour laws.
At some point in its multi-stage implementation, envisioned over several years, the new law will cover foreign workers for employment injury, maternity and sickness under the same terms as national workers.
Nasser al Jashmi, Secretary General of Ministry of Finance and Supervisor of the National Programme for Fiscal Sustainability and Financial Sector Development (Estidamah), was quoted as saying thus: “Inspired by the principles enshrined the Omani Constitution and the goals expressed in its Vision 2040, the government has embraced improving well-being and social protection as a central strategic priority. As Oman strives towards a more diversified and productive economy, protecting people remains at the core of its commitments. Rights-based and inclusive social protection are essential pillars for fostering sustainable economic progress, ensuring that no-one is left behind.”
ILO said its support for the initiative came in the form of technical assistance on policy, legal, governance, actuarial and socioeconomic modelling aspects of the reforms coordinated by the Regional Office for Arab States in Beirut and the Social Protection Department in Geneva.
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