Early retirement poses risk to pension fund sustainability: SPF CEO
Muscat – Early retirement remains a major challenge to the sustainability of pension funds in Oman and the Gulf region, according to Dr Faisal bin Abdullah al Farsi, CEO of Social Protection Fund (SPF). He also said that extended provision of job security benefits is straining the fund's reserves.
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
Times of Oman
6 days ago
- Times of Oman
State Council discusses study on diversifying sources of income in Oman
Muscat: The State Council's office today discussed a study titled "Mechanism for Diversifying Sources of Income in the Sultanate of Oman." The discussion took place during the State Council's 5th meeting of its second regular convening during the Eighth Term. The meeting was chaired by Sheikh Abdulmalik bin Abdullah Al Khalili, Chairman of the State Council. The study addressed the current state of the Omani economy and sources of national income. It also gave a briefing about global experiences in addressing the challenges of diversifying sources of income and financial sustainability. The study concluded with emphasis on exploring future prospects and recommendations for diversifying sources of income across various economic sectors. The meeting also reviewed a report submitted by the Social and Cultural Committee on hosting officials from the Social Protection Fund to discuss with them a mechanism for applying the social protection system.
Muscat Daily
7 days ago
- Muscat Daily
Directive reinforces Arabic for official communications in Oman
Muscat – Government Communication Centre has confirmed that the Council of Ministers has issued a directive mandating proper use of Arabic across all sectors in a move aimed at preserving the language as a cornerstone of national identity. The decision applies to all units of the state's administrative apparatus, state-owned enterprises, public and private legal entities, civil institutions and associations. 'In response to what has been circulated on social media concerning the document regulating the use of Arabic, Government Communication Centre affirms that Council of Ministers has recently issued a directive requiring all relevant bodies – governmental and non-governmental – to comply with this regulation. This directive underscores the sultanate's ongoing efforts to preserve the Arabic language as a vital element of Oman's national identity,' the statement said. The directive requires accurate Arabic to be used in naming government projects including streets, neighbourhoods, squares and parks, with names in other languages permitted in parentheses where necessary. It also mandates the use of proper Arabic in official communications such as meetings, events, agreements, MoUs, contracts, decisions, regulations and media advertisements. Translations or simultaneous interpretation may be provided in the public interest. The directive extends to the education sector, covering both public and private schools and higher education institutions, unless otherwise exempted by competent authorities. Correct Arabic must also be used in medical reports, prescriptions, academic certificates, degree equivalency decisions, and on official documents such as banknotes, stamps and medals. The use of other languages is permitted alongside Arabic when needed. The Council of Ministers has also urged private sector entities including banks, insurance companies, telecom firms and utility providers to ensure Arabic is used correctly in all public communications and documentation. The move is part of a wider national initiative to preserve the Arabic language and ensure its consistent use across all institutional and societal levels. The directive has received strong public support, with many seeing it as a reaffirmation of Oman's cultural and linguistic heritage. 'This is a declaration of loyalty to our identity and a covenant with the Arabic tongue. The statement restores Arabic to its rightful place in the national system,' Hilal al Zaidi posted on social media. Citizen Aisha al Riyami said, 'Language is the soul of a nation. By reinforcing the use of Arabic, Oman is ensuring that future generations remain connected to their heritage and roots. This decision reflects the significance of language in shaping identity and unity.'
Observer
01-06-2025
- Observer
Oman reaffirms Arabic language use across public and private sectors
Muscat: The Government Communication Centre clarifies that the Council of Ministers has recently directed all units of the State's administrative apparatus, and other relevant public and private legal entities, institutions, and civil associations, to adhere to the mentioned guidelines. The clarification comes in response to a formal directive by the Council of Ministers emphasizing the importance of upholding Arabic as a key element of national identity and a pillar of Oman's Vision 2040. According to a document released by the General Secretariat of the Council of Ministers, the use of Arabic is now mandatory in several key areas, including: Naming of Public Projects: New government-related projects such as streets, neighborhoods, and public spaces must be named in Arabic. A secondary name in another language may be added in parentheses if needed, but priority is given to Arabic terminology. Official Government Operations: All official business — including meetings, contracts, agreements, circulars, publications, and advertisements — must be conducted and documented in Arabic. The use of other languages is permitted only in urgent cases where public interest is at stake. Language of Instruction: Arabic remains the primary language of instruction in all government and higher education institutions unless otherwise specified by relevant regulations. Medical and Legal Documentation: Medical prescriptions, scientific certificates, legal decisions, and commercial contracts must be issued in Arabic. Other languages may be added alongside Arabic for clarity or international purposes. In addition, the Council urged private sector entities — including telecom companies, banks, utility providers, and insurers — to adopt the proper use of Arabic in their public communications and reports. The Government Communication Center stressed that these efforts aim to reinforce the Arabic language's standing in Omani society, highlighting it as one of the core components of the nation's cultural identity and strategic vision for the future.
