Report on Public Authority for Social Insurance

Q1. Explain the role of PASI in light of the above statement

Sultani Decree 72/91 publicized The Social Security in Oman, along with its supported amendments which delivered to the public on 1^st July 1992. Among these amendments, Article f from the Social Security Law proposes that a civic authority would be formulated and named with Public Authority for Social Insurance or PASI. PASI facilitated with financial and governmental liberation. The most important role of PASI is that, this authority in charge and control for the Social Security Law’s application.

Speaking about the Social Security Law, it was originated with a purpose to provide the security against the disability, old age, work-related grievance and any disease or death. For this reason, the Social Security Law is ensuring the social stability intended for the protected along with their dependents as well. In the other hand, the Social Security Law merely implements to Omani citizens who in employment within the Sultanate of Oman (Group, 2016).

Every single company that running business in Oman could access to the PASI system which sets up the entire details of every Omani worker along with their salary as well. This action could be done by every company through the Internet. Moreover, in Article 16, which could be found in the Social Security Law, there is a requirement for the employer to embark on payment of the complete social security contributions to PASI. In addition to this, the employer is the only person responsible for paying these contributions. In fact, the employer might also deduct the donation of the employee commencing the protected salary of the employee.

On the other hand, in case if any company has certain system of saving funds for its employees, then the Omani employees would receive extra than the privilege of PASI which required by the employer to contribute. For instance, if the employers’ donation is equal or might above than  to be donated by the employer, then this scenario is considered to be acceptable, and the employer would be excused to give contributions to PASI in aid of its employees. Conversely, in case if it drops below than what is fixed by the Social Security Law, then it would be quite essential to note here that the company might be anticipated as a breakthrough the Omani Labor Law as well as breaching the Social Security Law.

Another role of PASI could be seen as it settings up Article 74, which sets up an extra penalty to be added in the penalty under Article 17. Article 17 of the Social Security Law mentions that the employer who is issue to the law, but does not give the payment for the contribution rendering to real salaries of the workers, or does not give the payment for the insurance support for some or all of his workers, or does not give the payment for the end of service profits or rejects or suspensions to give the payment for inline contribution at the time, then the employer would be responsible to recompense to PASI an extra amount valued at  (omanlawblog.curtis.com, 2016).

The added penalty under Article 74 mentions that in case if the employer breaches several requirements of the Social Security Law, then the employer would be disciplined to pay a fine of minimum  and not above than , and the punishment limits would be twofold if any repetition of the breach occurs, and the fine would also be multiplied rendering to the amount of the workers with reverence to whom the employer obligates those violations. For that reason, it is essential for any company to meet the terms of PASI procedures. In case if the company has reviewed the employee’s wage, then it is the obligation of the company to inform PASI regarding the new wage and also embark on to give the payment for complete contribution to PASI consequently (omanlawblog.curtis.com, 2016).

Q2. The difference between PASI and another insurance company either inside Oman or outside Oman

The Public Authority for Social Insurance or PASI is the solitary social insurance institute in Oman which covers up all Omanis who work in the private segment. The social insurance law issuance was a measure of the government's inventiveness to branch out the economy and also inspired the young generations in Oman to make their careers within the private segment. The role of PASI has been sturdy during the course of the preceding years and can easily be seen commencing the expansion of the number of employees along with the employers, who are protected by the improvement of benefits. PASI also has modified the social insurance scheme as well. In the benefits part, the benefits level provided by PASI witnessed a fantastic growth if compared with other insurance company in Oman. That consist of growing the accumulation aspect in the formulation designed for estimating pensions, and similarly, a minimum pension was announced, and then augmented as a minimum three times to touch an existing level of . Further benefits were also enriched in the entire divisions of social insurance provided by PASI.

From here, we can take the conclusion that the Public Authority for Social Insurance has a different purpose with other insurance company in Oman. PASI has the purpose of giving more benefits for the Omanis and can be said that PASI has always been in the employees’ side. On the other hand, some other insurance companies might not in either employees or employers’ side. The reason is obvious; the insurance companies are the companies who aim to get profits in the business, as all of the companies are. Therefore, they will always pay attention to benefit their own companies rather than their clients. Hence, even though these insurance companies might provide interesting insurance packages for their clients, but still, the insurance companies will establish some intricate procedures for the clients to get their insurance, since the top priority is to get the profits for the company, not for the clients (globallegalinsights.com, n.d.).