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Before
starting and digging deep about the Public Authority for Social insurance, we
will be discussing that what does this PASI (Public Authority for Social
Insurance) means and what is it? Well this is the social security law and all
of its amendments are being promulgated by the Sultani Decree that is 72/91 and
this came into force back in 1st July, 1992 which is the Social Security Law.
Talking from the Article no 5 of the social security law it provides that
complete Public Authority for the Social Insurance (PASI) along with the
financial and administrative independence and it is also responsible for the
implementation of the social security law.
This
social security law aims for providing the security against the people who are
aged, disabled, death or the any of the occupational injury as well as any kind
of the disease. Thereby the social stability for the insured people along with
their dependents as well. This Social Security Law is only applicable to the
Omani Nationals that are employed in the Sultanate of Oman.
Under
the law of Social Security, employer is completely responsible for the payment
to the PASI in respect for each of the employee that is relevant and then all
of the payments need to be made or done on the terms of the actual income that
is being drawn by the different employees. In the present times, employer is
basically required to contribute a total of almost 11.5 percent to the PASI
(10.5% to the gross salary of different employees, an addition of 1% for all of
the occupational injuries along with those who have any disease). In short
employee is supposed to contribute almost an equal amount of 75 to its gross
salary.
Almost
each of the company in Oman has easy and online access to the scheme of PASI,
which set out all of the details for each of the Omani employee along with his
or her salary. On the basis of a standard practice, in the month of January for
almost every year, this PASI updates all of the contributions that each of the
employee along with the employer need to make that is based on the standard for
minimum 3% of the increment to the gross salary.
Next
part is that is it compulsory for the different companies to comply with all of
the rules under the Social Security Law? Or different companies can also
provide scheme on their own?
Well
according to the Article no 16 of the social security law requires an employer
to undertake different payments of all the full social subscriptions of the
security to PASI, and then the employer itself is completely responsible for
the payment of all these subscriptions and can even deduct the contribution of
employee from the salary of secured employee’s.
If
the company has different savings fund scheme for the workers through which the
Omani employees in actual receive more than the PASI entitlement which the
employer is supposed or required to contribute in it. Then all such kind of the
scheme can be accepted and then the employer is also exempted from making of
the PASI contributions on the behalf of its different certain employees.
However if it lies below the factor what is being defined under the law of
social security then it is very important to note down that company can be
foreseen like the breaching all of the Omani Labor Law along with the law of
social security.
According
to the Article number 7 of the social security law gives or tells that an
employee has almost one year from a date of leaving to bring down any of the
claim regarding PASI. In such kind of the case, employee will almost have one
year from when he or she leaves to raise the grievance against a certain
company.
A
social insurance scheme has been formulated for self-employed Omanis by the
royal decree 44/2013 that consisted of 39 provisions of articles for the
benefits of the self- employed citizens and their alike which required then
effective implementation of the proposed provisions for the pursuance of public
state. This social insurance scheme consisted of four main chapters that
further sub-categorized into 39 provisions. The four chapters are:
• General Provisions
• Financial Resources and Contributions
• Registration Procedures
• Insurance Benefits
Article
1 proposes different aspects of expressions to be used in the later provisions
for easy understanding and more impactful effect. The widely used expressions
are the authority, the minister, the board, the scheme, the law, the pensioner,
the insured income, contribution in income and non-occupational disability.
Whereas, Article 2 and 3 says the implementation of the scheme is necessary and
optional respectively. According to article 4, occupational injuries and
diseases should not be included in the scheme and rather be employed for
disability, old age or death insurance. Article 5 provides categories of the
self-employed Omanis that should be considered deserving for the scheme such as
industrialists, lawyers, commercial partners, doctors, engineers, farmers,
accountants, drivers, auditors, fishers, traders and shareholders. Article 6
suggests that this scheme shouldn’t be employed for employers who are earning
pensions or other certifies insurances under their names. According to the law
and scheme, such people should not apply for it. These six articles are general
provisions and guidelines for who to apply for the social insurance system.
Provision of financial resources and contributions start from article 7 onwards
that describes the resources from where the finances will be catered such as,
state treasury, legacies, fund investments, donations, subsidies or monthly
contributions by the insured people. Article 8 suggests that the authorities
should use a separate account for the scheme finances other than the
authoritative accounts. Article 9 suggests the starting and ending dates of the
fiscal years once the scheme gets employed. Article 10 states that the audit of
this scheme should be conducted on general rules of law. The insured persons
working in abroad should also make contributions in Omani Rial through
Sultanate banks as suggested by Article 11. Whereas, Article 12 suggests that
the value of income should be judged on the income of contribution by the
insured person rather than his own personal income. According to Article 13,
the insured person’s contributions should not be less than the average monthly
income whereas, Article 14 suggests that the insured person should make this
contribution within first fifteen days of his income for smooth running of the
scheme and if he becomes a defaulter and doesn’t contribute on time then he
should be paying additional 13.5 % to the total amount. According to the
Article 15, the insured person can even make advance contributions every three
months or six or even annually. According to Article 16, the insured person can
even request an increase or decrease by 5% to be added or deducted by next
month in the contributions depending on his financial status. He can even
request stopping his payable contribution depending on his forced circumstances
and by notifying the authority with valid reasoning as per Article 17. The
insured person will be suspended from contributions in the scheme if he becomes
a defaulter of twelve months that too without notifying the authority according
to Article 18. Article 19 suggests that the duration during which no monthly
contributions have been paid, shouldn’t be considered and rather amendments
should be allowed in attached monthly incomes decided by ministry of finance
and council ministers as per Article 20.
The
registration procedures have been guided after Article 21 onwards stating that
the authorities should be registering the insured persons on the determined
dates set for scheme contributions through an assigned form. According to
Article 22, the age set of the insured person should necessarily be between 18
and 60 years and not less or more. As per Article 23, the authority has all the
rights to object the contribution of the insured person seeing a discrepancy in
his profession or monthly salary and his amount of contribution. The
contribution amount should be set depending upon the nature of his/her profession
or his/her financial ability. According to Article 24, the insured person can
set the date of his/her contributions and that date will not be applied with
the initial month of the scheme and according to Article 25, he/she must notify
the authorizes about changes in their financial or legal status occurs such as,
shifting of job, liquidation of assets or bankruptcy, cessation or shifting of
activity in the scheme. Article 26 gives authorization to the ministers of
finance to suspect or investigate the insured person at any time depending on
procedural laws. Article 27 and 28 requires the provision of required documents
and information to the authority needed in connection with the scheme. And from
Article 29 onwards, various insurance benefits have been mentioned for the
scheme.
According
to the different articles for the social security law which tells that any of
the employer who is being subject to the law but they don’t have to pay any of
the contribution according to the actual income of the different employees or
even they don’t pay any of the insurance contribution for all or even some of
the employees.
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Cuiying, Y. A. (2019). Rational Perspective of the
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Social Insurance in Oman: A Model Approach. International Journal of
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Lindbeck, A. &. (2018). Social norms in social
insurance. Journal of Political Economy.
Shamki, D. &. (2017). Factors influence internal audit effectiveness. International Journal of Business and Management,, 12(10), 143.
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