Integrating contributory and non-contributory social protection in Oman

In July 2023, The Council of Ministers of Oman has approved the referral of a new draft law on social protection to the Council of Oman to complete its legislative session. The law reflects an ambitious set of reforms which will lead to the modernization and redesign of the social protection system architecture in Oman. This includes the establishment of a unified pension system for workers across all economic sectors, the enhancement of social insurance benefits during working life, and the establishment of life-cycle guarantees for the most vulnerable segments of society.

© ILO/Apex Image /18 April 2004/ Oman

Similar to many other countries in the region, the pension and social protection systems in Oman had faced growing challenges concerning sustainability, adequacy and effectiveness in providing needed protection to citizens and workers. Fragmented contributory schemes have caused gaps in coverage and comprehensiveness, hindered efficiency and discouraged workers mobility between economic sectors. Government-financed social protection schemes were also inadequate in extending support, particularly in the context of the gradual and ongoing removal of universal price subsidies for electricity and fuel, as well as the implementation of the new value-added tax.

The new legislation, developed with the extensive support of the International Labour Organization, significantly overhauls Oman's social protection system, addressing sustainability, adequacy, coverage and effectiveness challenges. Spearheaded by Tawazun, the high-level government programme for fiscal balance (now Estidamah), the reform integrates contributory and non-contributory elements within a sustainable financing model and a more streamlined social protection administration.

This webinar will present key features of the holistic reform, which has moved in full implementation mode since January 2024, focusing on its policy design (the “WHAT” of the reform), the main drivers that led to it, as well as the innovative approaches pursued to gather support for its adoption. A subsequent episode of the Arab Social Protection Compass Series, will shift the focus on “HOW” the reform is being implemented, highlighting its main administrative, institutional and governance features.
 

This episode is part of the Webinar Series "Arab Social Protection Compass. Towards Integrated Approaches for Universal Social Protection", organised by the International Labour Organization (ILO) in collaboration with the International Social Security Association (ISSA) and technical support of socialprotection.org. The initiative intends to put a spotlight on reforms and programmes geared towards fostering integration within social protection across the region and beyond, while contributing to stir discussion at the national level. Throughout the series, speakers will delve into both the theoretical underpinnings and practical implementations of specific reforms, aiming to inspire a broad audience of practitioners to replicate or scale up similar interventions. 

Agenda

13:00 – 13:10 | Opening and Welcome: 

• Luca Pellerano, Senior Regional Specialist, Social Protection, ILO  
• Magid Fathallah, Regional Coordinator, ISSA 

13:10 – 13:30 | Overview of comprehensive social protection reforms in Oman: 

• Majid Suliman Al-Farsi, Director of Benefits, Miliary and Security Services Pension Fund 

13:30 – 13:55 | Panel discussion

• Shea McClanahan, Technical Specialist in Social Security, ISSA
• Majid Suliman Al-Farsi, Director of Benefits, Miliary and Security Services Pension Fund 
• Tareq Abu el Haj, Expert in Quantitative analysis and modelling for social protection reforms, ILO  
• André Picard, Head of Actuarial Services Unit, Social Security Department, ILO 

13:55 – 14:25 | Q&A

14:25 – 14:30 | Closing