MUSCAT: As the country gears up for national day, citizens and residents of Oman have many reasons to celebrate. Breaking new ground in Oman’s modernising social welfare landscape was the promulgation of the Social Protection Law in July 2023.
Overseen by the Social Protection Fund (SPF), the law ushered several landmark reforms with the aim of establishing an inclusive and comprehensive social welfare system in line with Oman Vision 2040.
One of the key highlights of the Social Protection Law is the introduction of various cash benefits for different segments of society. These include an Elderly Benefit of RO 115 targeted at senior citizens above the age of 60 and a Children’s Benefit offering monthly assistance of RO 10 for each child under the age of 18.
The law also introduced a benefit of RO 130 targeted at individuals with disabilities, and an orphan and widow benefit that provides financial aid of up to RO 80 per month. This is in addition to a family income support benefit that aims to assist low-income families.
As of February 2024, the Social Protection Fund in Oman reported a total of 1,534,870 registered beneficiaries. This includes 1,266,785 children registered for the Children's Benefit, 175,123 individuals enrolled in the Elderly Benefit programme, and 47,095 individuals registered for the Disability Benefit.
Also, the Social Protection Law plays a supporting role in the various paternal leave reforms introduced by the Labour Law last year. As per the stipulations of the Labour Law, the SPF will be responsible for the cost of paternal leaves through the collection of monthly contributions to the Social Protection Fund.
These include the introduction of a seven-day paid parental leave for Omani and non-Omani fathers, a first in the GCC region. In addition to the extension of paid maternity leaves from 7 weeks to 14 weeks. Both leaves can be extended by an upward of 98 days of unpaid, job-protected leave which can be shared between both parents.
Addressing the International Labour Organization earlier this year, the CEO of SPF, Dr Faisal bin Abdullah al Farsi, highlighted the significance of parental leave. “The introduction of the parental leave branch under the Social Protection Law is not only aimed at increasing women's participation in the workforce, but also at improving the well-being of families and ensuring the future prosperity of our nation, ensuring close alignment with national objectives and international social security standards of the International Labour Organization.”
Another major reform in Oman’s Social Protection Law is the introduction of a Savings System for expatriates, replacing the traditional end-of-service gratuity. According to the new system, employers will be required to contribute 9 per cent of the expatriate employee’s basic salary monthly into a savings account which will be invested by the Fund. Employees are then eligible to receive the end of service payment as a lump sum or through scheduled instalments.
The International Labour Organization (ILO) hailed the reform as a groundbreaking initiative in the region. In a statement, ILO Regional Director for the Arab States, Ruba Jaradat, said, “The new legislation sets a new vision for social protection in Oman and paves the way towards universal social protection, establishing Oman as a reference for other countries in the region. Inclusive, comprehensive, equitable and sustainable social protection systems are critical for countries in the region to further ongoing social and economic transformations.”
To enhance efficiency, the Social Protection Law merged eleven existing pension and social insurance systems into a single entity (the Unified Social Protection Fund). Overseen by the Social Protection Fund, the merger aims to reduce redundancy, simplify access to benefits, and provide standardised protections for the workforce by unifying assets and obligations.
Graph points
Elders RO 115
Children RO 10
Disabled RO 130
Orphans and widows R0 80
Registered beneficiaries (as of Feb 2024)
Total: 1,534,870
Children: 1,266,785
Elders: 175,123
Disabled: 47,095
11 to 1
To enhance efficiency, the Social Protection Law merged eleven existing pension and social insurance systems into a single entity (the Unified Social Protection Fund).
First in GCC
A seven-day paid parental leave for all fathers, first in the region
Paid maternity leave 14 weeks
Cheer for expat
Employers will be required to contribute 9 per cent of the expatriate employee’s basic salary monthly into a savings account
QUOTE
The International Labour Organization (ILO) “The new legislation sets a new vision for social protection in Oman and paves the way towards universal social protection, establishing Oman as a reference for other countries in the region. Inclusive, comprehensive, equitable and sustainable social protection systems are critical for countries in the region to further ongoing social and economic transformations.”
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