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Observer
14-04-2025
- Business
- Observer
Muscat leads dialogue on social protection reform
MUSCAT: Amidst converging global crises - from demographic shifts to climate change - Muscat became the stage for a landmark dialogue on the future of social protection. The Sultanate of Oman hosted the International Technical Symposium on Social Security Reforms, drawing over 150 participants from 16 countries and several United Nations organisations. Jointly organised by Oman's Social Protection Fund, the International Social Security Association (ISSA), and the International Labour Organization (ILO), the two-day event opened the floor for critical conversations on inclusive, future-ready social security systems. Dr Faisal bin Abdullah al Farsi, CEO of the Social Protection Fund, emphasised the urgency of structural reform: 'We are witnessing profound transformations. From population aging to climate change, we must move beyond patchwork solutions and embrace innovation.' He highlighted Oman's bold steps under the leadership of His Majesty Sultan Haitham bin Tarik, including the unification of pension systems and consolidation of benefits under one national framework. ISSA President Dr Mohammad Azman praised Oman's role: 'Oman isn't just hosting a symposium - it's leading reform with vision. The nation's model is now a benchmark in the region, as seen in its recent ISSA 'Best Practice' award win for Asia and the Pacific.' Kauthar al Bartmani, Director of Planning and Vision Follow-Up, noted the symposium's mission: to reflect on reforms, exchange expertise and tackle shared challenges across the region. The symposium saw three key themes emerging. They are: Population aging: By 2050, the global population aged 60+ is expected to double, placing strain on pensions and healthcare. Informal economy: Millions work outside formal systems, exposing them to economic vulnerability. Climate change: Environmental disruption disproportionately affects the poor, highlighting the need to link social protection with climate resilience. A dedicated Omani session showcased the country's reform roadmap, presented by Deputy CEO Shabib bin Abdullah al Busaidy. Additional roundtables with the World Bank, Unicef, ILO and ISSA explored financing models and strategies for inclusive coverage. Sessions spotlighted underserved groups - women, migrants and the self-employed - who remain outside the protection net in many countries. In his closing remarks, ISSA President Dr Mohammad Azman said: 'Reform is not just about programmes. It's about people. True protection means reaching every worker, at every life stage. That's when we create real opportunity and resilience.' What set the Muscat symposium apart was not only its high-level international engagement but its courage to challenge old models, openness to experimentation, and collective drive to reimagine systems that are equitable, inclusive and future-proof. Throughout the symposium, a recurring theme was the need to embrace digital transformation to enhance the efficiency, transparency and accessibility of social protection systems. Experts shared success stories of digital platforms streamlining benefit delivery, improving data management and reducing administrative costs.
Observer
09-03-2025
- Business
- Observer
1.5 million people receive social protection benefits
Muscat: Overall spending on social protection has surged to RO 577 million signaling the great attention the Sultanate of Oman pays to achieving stability, a dignified life and improving the standard of living of citizens. Dr Faisal bin Abdullah al Farsi, CEO of the Social Protection Fund (SPF), explained that the fund's system includes a set of policies and programmes that deal with the life cycle of the individual from birth to old age. There are two types of benefits: insurance programmes and social protection programmes. The Social Protection Fund functions as an executive body to enforce the laws and legislation related to the social protection system, Al Farsi said stressing that governance is the basis for disbursing benefits and that governance aims to ensure that benefits only go to those who are actually entitled to them. Dr Faisal bin Abdullah al Farsi, CEO of the Social Protection Fund (SPF) Al Farsi said that the number of direct beneficiaries of social protection benefits crossed 1.5 million people. As for insurance programmes, there are 590,000 active insured persons in addition to 1 million foreign workers who were added to the social protection system for the first time. Hence, the Social Protection Fund benefits more than 2 million people monthly. Al Farsi noted that the system includes three main levels namely: zero level which is the basic social protection such as the elderly benefit which amounts to RO 115 disbursed as part of social protection support on top of the retirement pension. Certainly, some benefits are paid automatically to all Omanis who meet the conditions, such as the elderly, while other benefits are subject to verification to ensure that they go to the persons who need them the most. Regarding the classification of permanent diseases, Al Farsi said that measures are underway to classify the category of permanent diseases as part of the benefits of people with disabilities and the classification is expected to be approved soon. Al Farsi said that the new social protection law was distinguished by making retirement pensions variable instead of being fixed due to inflation. Accordingly, pensions are calculated on the basis of 75 per cent of the official inflation rate while ensuring a minimum annual rise. This year, the percentage was raised to 1 per cent and will be reviewed annually according to the inflation rate. As per the new system, the retirement pension is calculated according to the annual wage growth rate which amounted to 3 per cent last year. This means that individuals who did not receive a salary rise will be automatically compensated by this percentage upon calculating the retirement pension. Also under the Social Protection System is the Job Security System which provides temporary support to those who lost their jobs for reasons beyond their control during crises. The system has seen an extension of the unemployment benefits for more than five years due to economic crises, Al Farsi concluded. The text is translated by Khalid Al Kush and written by Yousef Al Habsi
Muscat Daily
09-03-2025
- Business
- Muscat Daily
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.
Observer
27-02-2025
- Business
- Observer
Study on impacts of determining retirement age 'essential': SPF
Muscat: Faisal bin Abdullah al Farsi, CEO of the Social Protection Fund (SPF) highlighted some of the most significant challenges faced by the pension system under the previous regime during a panel discussion at 'Together We Progress' Forum. According to al Farsi, one of the core issues was the existence of multiple pension funds, each with different perspectives and considerable deficit in financing their obligations. Al Farsi pointed out that these varying structures led to difficulties in transferring subscriptions between institutions and sectors, which adversely impacted the improvement of beneficiaries' perspectives. The CEO said the new pension system aims to resolve the billion-amounted deficits that accumulated due to the imbalance between subscriptions and the benefits previously provided. Addressing the Protection Law, he noted that while it is flexible and amendable, it is necessary to ensure the sustainability of the pension fund to prevent the recurrence of such deficits in the future. He also clarified that end-of-service gratuity is a matter to be addressed by individual institutions, rather than the pension system as a whole. Meanwhile, Salim bin Nasser al Aufi, Minister of Energy and Minerals and Chairman of the Board of Directors of the Social Protection Fund (SPF) underscored the importance of studying the effects of determining the retirement age, in an early or regular pension. He explained that lowering the retirement age could significantly increase financial obligations for the fund. According to al Aufi, any decision on the retirement age must be backed by accurate scientific studies, which effectively considers the sustainability of the fund to ensure a balanced approach.
