Early retirement poses risk to pension fund sustainability: SPF CEO
Speaking at the inaugural session of Communication Dialogue, organised by Government Communication Centre, Farsi emphasised the need for reforms to ensure long-term financial stability. He noted that early retirement is a system unique to the region. 'This system does not exist anywhere in the world except in the sultanate and the Gulf states,' he said, adding that it contributes significantly to financial losses within pension funds.
Farsi stated that the social protection system aims to provide comprehensive care while also supporting economic and social development through targeted policies and programmes. As of February, SPF was supporting over 1.5mn beneficiaries, including the elderly, children, individuals with disabilities, widows, orphans and social security recipients. The number of active insured individuals under SPF across all insurance programmes stood at 590,000.
Regarding job security benefits, Farsi pointed out that extended support for laid-off individuals has significantly affected the fund's financial stability. The benefits were initially meant to last six months but have now been extended for over four years.
While reaffirming SPF's commitment to assisting those affected, Farsi stressed the importance of addressing the root cause of job loss and the need to provide alternative employment.
However, he noted that some individuals have declined job offers despite efforts by authorities to create new opportunities. Under the law, laid-off individuals must be offered at least three job opportunities, and if they reject these, their benefits may be gradually reduced. Farsi encouraged unemployed individuals to actively seek new employment rather than rely solely on financial assistance. He al-so clarified that the minimum job security benefit of RO115 applies only to individuals who have received benefit extensions in recent years. For those recently laid off, benefits are calculated based on the standard mechanism, providing 60% of their wage for six months.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Observer
3 hours ago
- Observer
Oman hosts GCC social insurance committee meet
MUSCAT: Oman, represented by the Social Protection Fund (SPF), hosted the 62nd meeting of the Technical Committee for Civil Pension and Social Insurance Authorities in the Gulf Cooperation Council (GCC) from August 18 to 20. The three-day meeting brought together representatives from across the region to review progress and chart future directions for cooperation in pension and social security systems. The discussions highlighted the GCC's strategic goal of extending social insurance coverage to citizens working outside their home countries within the bloc. The unified system ensures that Gulf nationals enjoy equal protection and benefits, regardless of where they are employed in the region. The meeting also addressed the development of the unified system for coverage, monitoring statistical indicators, enhancing mechanisms for contribution collection, advancing training and capacity building; and reviewing progress in electronic linkage initiatives that enable smoother data exchange among GCC pension and insurance systems. The SPF organised an interactive session for GCC citizens working in Oman On the sidelines, the Social Protection Fund organised an interactive session for GCC citizens working in Oman, allowing them to engage directly with representatives from regional pension institutions. 'Having direct answers from officials helps clarify our rights under the unified system. It gives us confidence that our contributions are secure, no matter where we work in the GCC', said Saud al Kindi, a private-sector employee in Oman. Participants agreed that the committee's work lays important groundwork ahead of the upcoming meeting of GCC pension and social insurance heads. Statistical updates shared during the sessions reflected the growing number of citizens benefitting from the unified system, underscoring its relevance in today's interconnected labour market. Experts noted that sustained cooperation is vital as Gulf economies diversify and labour mobility increases. By harmonising systems and sharing expertise, GCC nations can better safeguard their citizens against uncertainties while ensuring equitable benefits across borders. Observers also underlined that Oman's hosting of the 62nd meeting reflects its growing role in shaping social protection policies in the region. The Muscat gathering, they said, was not only a routine technical exercise but also a step towards building a comprehensive Gulf-wide safety net rooted in solidarity, fairness and shared prosperity.
Times of Oman
4 days ago
- Times of Oman
Nearly 170,000 beneficiaries of social fund in South Al Batinah
A'Rustaq: The Governorate of South Al Batinah is witnessing steady growth in social protection services, driven by the efforts of the Social Protection Fund to secure a dignified life for citizens, aligning with the objectives of Oman Vision 2040 to build a cohesive and prosperous society. According to statistical reports issued by the Fund, the total number of beneficiaries in South Al Batinah by the end of June 2025 reached 169,998 individuals across various social categories. Children topped the list of beneficiaries with 142,041, followed by 18,867 elderly individuals. Persons with disabilities accounted for 4,651 beneficiaries, while orphans and widows numbered 1,548. Additionally, 2,891 families received income support. The Fund's efforts extend beyond financial aid, encompassing an integrated system of innovative and streamlined services. A total of 3,120 services were provided, including 246 field services completed remotely via phone or other communication channels—eliminating the need for in-person visits and saving beneficiaries time and effort. Meanwhile, 2,792 self-service transactions were conducted electronically through the Fund's headquarters or digital portals, leveraging digital transformation technologies. The Fund also organised 47 awareness campaigns, including direct meetings and workshops to introduce the public to its programs and services while enhancing social awareness of the rights of target groups. Additionally, 35 proactive services were offered, covering media activities and predictive measures to anticipate beneficiaries' needs. The South Al Batinah branch of the Fund has relocated to a new headquarters equipped with the latest standards, reflecting a shift toward a more efficient and comfortable work environment. The design prioritises accessibility for all community members, particularly persons with disabilities, with fully equipped pathways and facilities to ensure seamless access and high-quality service delivery. The Fund places special emphasis on community engagement through participation in local events, reinforcing its humanitarian and developmental role.
Muscat Daily
05-08-2025
- Muscat Daily
Shura committee calls for resumption of job security benefits
Muscat – The Youth and Human Resources Committee of Majlis A'Shura has called for immediate resumptionof the job security benefit previously extended to laid-off workers, citing significant social and economic repercussions of its suspension. Chaired by Younis al Mandhari, the committee met on Tuesday to examine the impact of freezing the benefit disbursed by Social Protection Fund. Members raised concerns about the worsening living conditions of those affected and emphasised the need to resume the aid to ensure psychological and social stability for impacted individuals and their families. The committee urged relevant authorities to take immediate steps, including empowering governorates and promoting decentralised decision-making in employment and redundancy matters. Members noted that such an approach would facilitate faster, locally-tailored solutions aligned with the specific needs of each governorate. There was strong emphasis on the need to create job opportunities based on qualifications and professional experience of laid-off workers, alongside implementation of requalification and skills development programmes to support their reintegration into the labour market. The committee also called for building a comprehensive and regularly updated database of jobseekers and laid-off individuals to better inform national employment policies and future strategies. Among the proposed measures was amendment or introduction of legislation to improve protection mechanisms for the national workforce. The committee discussed the possibility of allocating dedicated vacancies in government institutions and state-owned enterprises specifically for laid-off workers. In support of national workforce retention, members highlighted the urgency of accelerating Omanisation. They recommended replacing expatriate-held jobs with qualified Omanis and suggested increasing the cost of hiring expatriates in the private sector to encourage employment of citizens. Concluding the session, the committee stressed the need for a holistic and long-term approach to address layoffs, beginning with tackling root causes. This, they said, includes overcoming legal and administrative obstacles and establishing a national action plan to ensure employment stability and social justice for Omani citizens.
