The Social Insurance System was applied to provide a safe environment when working for any institution under its umbrella. It provides social protection against risks involving old age, disability, death and any other risks concerning work injuries and occupational diseases. Therefore, registering Omani workers in social insurance record is essential to safeguard his entitlements when insurance benefits are due for payment by the system. Therefore, registering in the system is mandatory. Employers must ensure registration of all workers to preserve their rights, stimulate work in the private sector and establish a sound employer-employee relationship based on rights and duties.
Registering Omani workers in social insurance records is essential. The subscription number is issued after completing the registration process and providing all the necessary documents. The subscription number is used in all PASI related transactions. It is also used to issue a permanent insurance number for the employee, which is also used for the employee’s transactions in PASI.
Registration of Employers
Employers are registered once the first contract for an Omani worker is approved. The institution data are retrieved automatically to PASI systems from the data registered in the Ministry of Commerce, Industry and Investment Promotion.
Registration of the Insured Persons
- Insured persons who are subject to the provisions of the Social Insurance Law are registered as per article (59) of the said law immediately after approving the data of the work contract at the Ministry of Labor. The data is automatically transmitted to PASI systems.
Termination of Service of the Insured Person
- When the service of the insured person is terminated regardless of the reason, employers must fill the contract termination form at the Ministry of Labor which is available on their website (www.manpower.gov.om). The data is transmitted automatically to PASI systems.
Contributions are the main source of financing for the Social Insurance system. They are the amounts paid by the employee "the insured person", employer and the state national treasury in the insurance system to cover the insured persons against old age, disability and death risks in addition to occupational diseases and work injuries.
Contributions are payable on a monthly basis. They are calculated from the gross salary as follows: Employer's contributions: 11.5% of the Gross salary (10.5% for the coverage against old age, disability and death + 1% for the coverage against occupational diseases and work injuries). The insured person’s contributions 7% of the gross salary. The government’s contribution 5.5% of the gross salary.
The insured person’s salary is 325 Omani rials. Contributions will be as follows:
Employer: 325 * 11.5% = 37.375 Omani rials
Insured Person: 325 * 7% = 22.750 Omani rials.
The employer shall pay all contribution amounts on him and on the insured person within the first 15 days of the month next to the month for which payment is due. The employer is the only accountable body before PASI. The employer may deduct the contributions payable by the insured person from his salary. For Example:
January contributions can be paid from 1 February to 15 February.
Issue of Notices
By the end of each month, PASI automatic systems run calculations on monthly contributions payable by all employers. After that, notices of the monthly contributions are sent via mails to the employers. Information can also be obtained in PASI electronic portal where contributions can be paid using the available e-payments channels.
Payment of Contributions
on Installment Basis Employers who have contribution arrears for a long time may submit a request to pay contributions on an installment basis. PASI applicable systems and regulations permit payment on installment under the rules and controls set by a decision from the Board.
Exchanging Contributions with other Insurance Schemes
It means transferring the accumulated contributions of the insured persons in the social insurance scheme to other pension schemes upon the termination of his/her service from the private sector and joining an entity that is covered under one of those pension funds and vice versa. PASI currently transfers the accumulated contributions of the insured persons who moved from the private sector to entities covered under one of the following pension funds: - Diwan of Royal Court Pension Fund - Civil Service Employees Pension Fund - Ministry of Defense Pension Fund
On the other hand, when an insured employee transfers from one of the entities under the Civil Service Pension Fund to the Social Insurance Fund, the concerned pension fund must transfer his/her accumulated contribution to PASI. Likewise, employees moving from institutions under Diwan of Royal Court Fund must submit a request to include their previous service period to the service period in the private sector within six months from moving to the private sector in order to enable insured persons to include their previous service to be entitled to pension or end of service benefits.
Insurance scheme for Omanis Working Abroad and Persons of Equivalent Status was promulgated by the Royal Decree No. 32/2000 on 30 April 2000. This scheme applies optionally to the Omanis working outside the Sultanate or in GCC states. It also applies to persons of equivalent status such as those working in embassies, consulates, and international organizations in the Sultanate. Omanis working in the public and private sectors in any GCC state are not included under the scheme. The contributions are paid solely by the employees. This insurance scheme provides coverage against death, disability and old age.
Once the conditions are satisfied, registration is considered complete effective from the application date by registering via PASI electronic services. The following documents must be attached: ·
- Copy of the employment contract or its equivalent endorsed by the competent authorities ·
- Medical report endorsed the competent authority
- The monthly contributions of 16% of the income bracket selected by the insured provided it shall not be less than 200 Omani rials and not more than 800 Omani rials. ·
- Monthly contribution within the first 15 days of the month next to the month for which the payment is due.
- Should the insured person fail to pay within the prescribed period, he must pay an additional amount of 13.5% of the monthly contribution value. ·
- The insured may pay the prescribed contributions in advance every three months, six months or every year at his/her discretion.
- The insured person may amend the selected income bracket by adding or subtracting to the limit 5% in January every year.
• Table of presumed monthly income:
|No||Income (OMR)||contribution paid by the employee at 16%||حصة الحكومة بنسبة (2%)|
- The insured person must set out the presumed monthly income (in line with his total income) on which basis the monthly contributions are paid.
The benefit of the insured shall cease if he is no longer subject to the provision of this scheme or if he failed to pay contributions for six continuous months.
Within the continuous efforts to expand the social insurance umbrella to cover the different segments of the society and with a view to establish job and career stability, the social insurance scheme for self-employed Omanis, businessmen, and persons of equivalent status was issued. The system was promulgated by the Royal Decree no. 44/2013 under the name "Social Insurance System for Self-Employed Omanis and Persons of Equivalent Status”. The scheme complements the insurance programs under the social insurance scheme. Subscription in the system is optional. It provides coverage against old age, disability and death as set out by the Social Insurance Law without providing coverage against work injuries and occupational diseases
Applicants must fulfill the following conditions:
1. Fill the electronic registration form found in the electronic services portal.
2. Statement of employment endorsed by concerned authorities inside or outside the country.
Contributions are calculated on the basis of the income selected by the insured as per the following category:
|Income (OMR)||contribution paid by the insured||contribution paid by the government||Total|
- Extension of insurance Protection means the extension of social insurance coverage to include citizens of GCC countries working outside their countries. The Unified Law of Insurance Protection Extension was issued pursuant to the decision taken by the Supreme Council of the Gulf Cooperation Council in its 25th session, which was held in the Kingdom of Bahrain in December 2004.
The law is mandatory on the GCC citizens working in the private sector abroad in any Member State of the Council as of 1 January 2006 except for Qatar and the United Arab Emirates which applied the law on 1/1/2007.
In this respect, PASI provides insurance coverage for the Omanis nationals working abroad in the private sector in any GCC state. The provisions of the insurance law applicable to the Omanis who work inside the country shall apply to them, save cases of work injuries and occupational diseases. The following conditions shall also apply:
- 1. The employee shall be Omani.
2. The employee shall work for an employer who is subject to the social insurance law/scheme in the state of the place of business.
3. The age of the employee at the date when he/she commences the work shall not be less than 15 and not exceeding 59 years (upon registering for the first time in the social insurance scheme.
4. The employee must not be under any other insurance/pension scheme at the time of registration.
5. The employee must not be retired from any government unit.
GCC citizens who work in the Sultanate, are provided with social insurance coverage by the civil pension and social insurance funds in their home states. The role of PASI is restricted to liaising between the citizens and the funds regarding registration and provision of information.
- Employers must follow the same procedures and fill the same forms used in the state of the place of business. Forms are available in the social insurance/pension authorities in the state of the place of business.
The form then is submitted to the social insurance/pension authorities in the state of the place of business. Relevant documents regarding approval from the concerned authority to start the commercial activity (commercial registration papers, computer prints-out, specimen signature) must be attached. ·
- Registration of Omani workers
- Insured workers are registered using the standard form of the Unified Law of Insurance Protection Extension for GCC citizens. Forms are available in the social insurance/pension authorities in the state of the place of work.
- The form then is sent to the concerned social insurance/pension authorities in the state of the place of work. A copy of the passport/ID and a copy of the employment agreement approved by the competent authorities in the state of the place of work must be attached.
PASI would like to draw the attention of employers in GCC states that in case of any delay in registering all or some employees who are covered under the provisions of the Unified Law of Insurance Protection Extension or in notifying PASI about their end of service, the penalties stated in the social insurance law of the state of the place of work shall apply.
According to the Social Insurance Law applicable in the Sultanate, the contributory wage shall be the total basic salary, in addition to the regular allowances if any, provided that the contributory wage shall not exceed 3000 Omani rials or equivalent, and provided also that the employee is insured in accordance with the definition of salary and its elements stated in the social insurance law applicable in the employee’s home state. The liability of the employer shall not exceed his liability towards the citizens of this employer’s state with respect to the cap of contribution wage or the salary elements applicable in the state of the place of business. Should the contribution paid by the employer be less as a result of the restriction in the above-mentioned paragraph, the employee shall pay the difference resulting from that unless the state decides to pay this difference on behalf of its citizen employee.
Percentage of the Deducted Contributions
The monthly contribution is calculated at 17.5% of the total basic salary for the insured Omani worker and GCC employers who have Omani employees in accordance with the following table:
|State of Employer||Contributory Wage||Contribution of employees||Contribution of Employer|
|1||UAE||Total Salary||7 %||10.5%|
|3||Saudi Arabia||Basic+ Housing Allowance||8.5%||9%|
|5||Qatar||Basic+ The social allowance||7.5%||10%|
The employment security scheme is considered as a national project that biases on Social solidarity. Its concept is based on providing the social protection for the Omanis whose service was terminated (en masse- collectively) due to reasons beyond their control; the scheme works on bridging the transitional gap between the previous employment and the opportunity to get a new job by providing an income which guarantees a decent standard of living to the citizen and his family represented in a benefit for as certain period equal to a part of the salary he used to take and also to help him look for job opportunities.
The Omani labor force in all employment sectors in the Sultanate (civil, military, security and the private sector).
The resources of the Scheme shall consist of the following:
- The share that the employer is committed to pay equal to (1%) one percent from the monthly wage of contribution of the insured.
- The share that the insured person is committed to pay equal to (1%) one percent from his monthly wage of contribution.
- An amount of (5%) five percent is added to the fee of each permit or renewal of a permit for employing non-Omani workforce in the commercial work, for each worker.
The employer of the units of the administrative apparatus of the state and others from the legal public persons shall be obliged to pay the contributions provided for in this scheme at the end of each month to the account of the scheme.
The employer of the private sector is obliged to pay the contributions provided for in this scheme to the account of the scheme within the first (15) fifteen days of the month that follows the month of the entitlement of these contributions. In all cases, the employer shall be responsible for paying the due contributions on its behalf and on behalf of the insured person. To that end, the employer may deduct the contributions the insured person has to pay from his salary or wage each time the salary or wage is paid.
The employer in the private sector shall, before the collective termination of the service of the insured persons, be obliged to give the Ministry of Labor a notice of no less than (3) three months prior date of termination