Eagerly awaited executive regulations to Social Protection Law 52/2023 released by Oman

The Social Protection Law promulgated by Royal Decree 52/2023 stated that rules and procedures concerning its implementation will be issued in an Executive regulation. On the 7th of January 2024 the Ministry of Social Development rendered the Executive referenced R/07/2023 concerning the administration of benefits as: pensions, unemployment insurance and health care including the eligibility requirements, application procedures, and appeal processes. Additional provisions have been incorporated covering financing of the social protection system, as well as the roles and responsibilities of different government agencies involved in its administration.

The Regulation defines the eligible beneficiaries such as Omani citizens, Omani nationals which no longer have their Omani nationality, residents, and certain categories of foreign workers and the type of benefits that cover each category of the beneficiaries such as pensions, unemployment insurance, sickness benefits, maternity benefits, and disability benefits. It further declares the eligibility criteria that the Social Protection Fund requires and details the application procedure including the documentation required including the timeline associated for change of information.

This regulation is even concerned with the contribution, payment and distribution criteria of the benefits. The employer shall make the payments to the beneficiaries’ bank account and shall complete the payment within the end of the month. In an unprecedent manner, it regards company partners as self-employed that fall under an exceptional application and contribution criteria. Additionally, the Regulation sets a priority for disbursing entitlements to avoid any complexity and overdue of entitlements.

The Executive Regulation aims to reserve the value of investment by setting a minimum return of (2%) two percent per annum is intended to ensure that savers’ savings do not lose value over time due to inflation. The Council shall determine the minimum and target limits for savings in accordance with the mechanism it adopts. This mechanism may consider factors such as the age of the saver, the saver’s expected retirement age, and the saver’s risk tolerance.

the circumstances in which the registration of an insured person with the Fund will automatically terminate have been detailed within the Regulation. The first circumstance is the termination of employment for any reason by the competent authority for insured persons of Omanis working in the Sultanate of Oman. This includes termination of employment due to resignation, dismissal, redundancy, or death. The fourth circumstance is the stop of the insured person from the category of Omanis working for themselves and their equivalents from practicing his activity or profession. This includes the stop of the insured person from running a business, providing professional services, or engaging in any other activity that is considered to be work for the purposes of the Social Protection Fund. The fifth circumstance is the termination of the service of the insured person covered by the systems of extending insurance protection for citizens of the Gulf Cooperation Council states in accordance with the procedures in force in the host country.

The Regulation further addresses several government authorities and council to practice their authorities and render decisions concerned with the implementation of the Social Protection law. It even sets penalties for defaults conducted by employers such as: failure to register an employee with the fund and default in contribution. These penalties could extend to The Fund, in coordination with the relevant authorities, request to suspend its dealings with the employer and the insured person who violate the provisions of the law.