Job Security in the Sultanate of Oman and How to Submit a Job Security System Benefit Request

The Oman Job Security Program is one of the programs that aims to help those who are able to work when they are unemployed or while searching for a new job. The Job Security System contains twenty-two articles that fall into four chapters. The first chapter includes definitions and general provisions, while the second chapter includes financial provisions of the system, the third includes benefit provisions, and the fourth includes concluding provisions.

Job security benefit in Oman

The Sultanate of Oman launched the job security benefit system out of its keenness to provide all means of decent living to citizens within the Sultanate’s territories. The job security program aims to provide a temporary monthly benefit upon termination of employees’ employment, in addition to providing financial aid to job seekers as well. This program also helps many trainees as well.

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Job security in Oman

The job security system was approved in the Sultanate of Oman by Sultan Haitham bin Tariq Al Said during the year 2023 AD. It is a system that includes twenty-two articles to help many categories of workers within the Sultanate’s territories, as follows.

Ministry of Labor Job Security Fund

The Job Security Fund in the Sultanate of Oman provides beneficiaries with various financial benefits when they are exposed to unemployment. The funds of this fund are collected by contributors in the Sultanate. This name was chosen to take into account the psychological factor among beneficiaries; it indicates the stability of the living conditions in light of the various circumstances, and it is worth noting that requests for the benefit of this fund began with the entry of November 2023 AD.[1]

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Details of the job security system in the Sultanate of Oman

Sultan Haitham bin Tariq approved the Job Security System in the Sultanate on Monday 27/Dhu al-Hijjah/1441 AH corresponding to August 17, 2023 AD. This system stipulates the following articles:

• Article One: In applying the provisions of this system, the following words and phrases will have the meaning indicated next to each of them, unless the context of the text requires another meaning:
  • System: Job security system.
  • Authority: The General Authority for Social Insurance.
  • Board of Directors: The Authority’s Board of Directors.
  • President: Chairman of the Council.
  • Committee: The committee stipulated in Article Three of this law.
  • Employer:
    • Units of the civil, military, and security administrative apparatus of the state, and other public legal persons.
    • The employer in the private sector who employs one or more workers subject to the provisions of this system, whether a natural or legal person.
  • The insured: The Omani employee, associate, or worker who works for the employer.
  • Contribution Wage: The salary or wage on the basis of which the contributions stipulated in the laws and regulations of retirement and social insurance are paid.
  • Benefit: The cash amount due to the insured, from those whose services were collectively terminated from work in accordance with the provisions of this system.
  • Job seeker: A person who has not previously worked and who meets the conditions specified by a decision issued by the President after the approval of the Council of Ministers.
  • Subsidy: The cash amount to which a first-time job seeker is entitled.
• Article Two: The provisions of this system shall apply mandatorily to insured persons working within the Sultanate.
• Article Three: A specialized committee shall be established regarding the insured persons whose services have been collectively terminated from work. A decision shall be issued by the President to form it, including representatives from the Ministry of Finance, the Authority, and other relevant authorities. The decision shall specify the system and controls for the work of this committee, and the powers assigned to it.
• Article Four: The cases in which termination of employment for insured persons is considered collective termination shall be determined by a decision of the President.
• Article Five: The employer is obligated to provide the Authority with all the data it requests in the field of implementing the provisions of this system.
• Article Six: An independent account for the system shall be established within the Authority’s accounts.
• Article Seven: The system’s resources consist of the following:
  • The share that the employer is obligated to pay is 1%, one percent of the insured’s monthly contribution wage in accordance with the law or system of retirement or social insurance, to which he is subject.
  • The share that the insured is obligated to pay, amounting to 1% (one percent) of his monthly subscription wage, in accordance with the retirement or social insurance law or system to which he is subject.
  • An amount of 5% (five percent) shall be added to the fee for each license or license renewal for recruiting non-Omani workers related to commercial activities, for each worker.
  • The amounts allocated to the system from the state’s general treasury.
  • Gifts, bequests, donations and grants approved by the Board of Directors.
  • Loans approved by the Board of Directors after the approval of the Ministry of Finance.
  • Returns on investment of system funds.
  • Other resources determined by the Board of Directors after the approval of the Council of Ministers.
• Article Eight: This article stipulates the following items:
  • The employer, the units of the state’s administrative apparatus, and other public legal entities are obligated to pay the subscriptions stipulated in this system at the end of each month to the system’s account.
  • The private sector employer is obligated to pay the contributions stipulated in this system to the system account within the first fifteen days of the month following the month for which those contributions are due.
  • In all cases, the employer is responsible for paying the contributions due from it and the insured, and for this purpose it has the right to deduct from the insured’s salary or wages the contribution that falls on him every time it pays him his salary or wages.
• Article Nine: The financial position of the system’s account shall be examined at least once every five years by one or more actuarial experts. This examination must include an estimate of the value of existing obligations. If it is found that there is an actuarial deficit for two consecutive actuarial studies or a financial deficit in the system’s funds, the Board of Directors shall undertake to take the necessary measures to ensure strengthening the system’s financial position, based on the recommendation of the actuarial expert and the approval of the Council of Ministers.
• Article Ten: The fiscal year of the system begins on the first day of January and ends on the thirty-first of December of each year. The first fiscal year begins from the date of implementation of this system and ends on the thirty-first of December of the following year.
• Article Eleven: For the insured to be entitled to the benefit, the following conditions must be met:
  • To have completed the period stipulated for entitlement to the benefit stipulated in Article Twelve of this system.
  • He must not have a retirement pension in accordance with the provisions of any law, retirement system, or social insurance.
  • He must not have left work of his own free will.
  • He must not have been dismissed from work for disciplinary reasons.
  • To be able to work and serious about searching for it according to the controls and conditions approved by the Board of Directors.
  • He must not be enrolled in an educational institution with a regular education system.
• Article Twelve: This article includes several clauses as follows:
  • To be eligible for the benefit upon the first claim, a subscription period of twelve consecutive months, or twelve intermittent months within thirty-six months prior to termination of service, is required.
  • In order to be entitled to the benefit upon the second claim, the subscription period must be eighteen continuous months, or eighteen intermittent months must be available within forty-two months before termination of service.
  • In order to be entitled to the benefit upon the third claim, the subscription period must be twenty-four consecutive months, or twenty-four intermittent months must be available within forty-eight months before termination of service.
  • In order to be entitled to the benefit upon the fourth claim and thereafter, the subscription period must be thirty-six consecutive months, or thirty-six intermittent months within sixty months before termination of service.
  • For the purposes of applying this Article, a claim for benefit is considered a new one when the benefit has been paid for a period of six consecutive or intermittent months.
• Article Thirteen: The benefit shall be paid monthly for a maximum period of six consecutive or intermittent months at a rate of 60% of the average subscription wage during the twenty-four months preceding the termination of service, or the subscription period if it is less than that, provided that the value of the benefit shall not be less than the minimum pension stipulated in the aforementioned Social Insurance Law.
• Article Fourteen: The insured person is entitled to the benefit as of the date determined by the committee.
• Article Fifteen: The benefit is calculated on a daily basis by dividing the monthly amount by thirty days.
• Article Sixteen:
  • The benefit will be stopped in the following two cases:
    • If the insured loses any of the conditions stipulated in Article 1 of this system.
    • Death of the insured.
  • If the benefit disbursement is suspended in any of the two cases referred to in this article, and then the impediment pursuant to which the disbursement was stopped is removed, the disbursement will resume from the day following the date of notification thereof. In all cases, the benefit may not be disbursed after twenty-four months have passed from the due date on a single claim.
• Article Seventeen: The insured is obligated to return all financial sums disbursed to him unlawfully, if the disbursement of the benefit was based on deception or fraud, and this does not prevent taking the necessary legal measures.
• Article Eighteen: The insured person entitled to the benefit is obligated to notify the Authority within fifteen days at most of any amendments or changes that may occur to his legal status.
• Article Nineteen: It is not permissible to combine the benefit due in accordance with the provisions of this system, and any pension due in accordance with any law, retirement or social insurance system, or any other entitlement determined by the committee, with the exception of the permanent partial disability pension.
• Article Twenty: The private sector employer shall be obligated, before terminating the work of the insured persons collectively, to notify the Ministry of Labor at least three months prior to the date specified for termination.
• Article Twenty-One:
  • The Authority may charge additional amounts to the employer in the event that it is late in paying the contributions due to the Authority.
  • Additional amounts will be charged to employers that are proven to have terminated the service of the insured in violation of the provisions of this system according to a report issued by the committee.
  • The value of the additional amounts and the mechanism for calculating them shall be determined by a decision of the President, based on the proposal of the Board of Directors, and after the approval of the Council of Ministers.
• Article Twenty-Two: An allowance may be disbursed to a job seeker for the first time, after three years have passed since the date of the implementation of this system, in accordance with the rules and conditions issued by a decision of the President, after the approval of the Council of Ministers.

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Conditions for eligibility for the Job Security System benefit

There are several conditions that must be met by the Omani citizen to be eligible for the benefit of the job security system, which are the following conditions:

• The applicant for assistance must not have any retirement pension based on the provisions of any law, retirement system or social insurance in the Sultanate.
• The beneficiary must complete the stipulated period for entitlement to manqa according to Article Twelve of the law.
• The participant is not entitled to any of the benefits if he leaves work of his own free will or if he is dismissed for disciplinary reasons.
• The beneficiary must be able to work and serious in his search according to the terms and conditions of the Board of Directors.
• The participant must not be enrolled in any regular education institution.

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Submit a request to receive a job security benefit

We can request a job security system benefit payment via the Internet by following the following steps:[2]

• Verify that electronic authentication of the ID card or phone number is activated.
• Go to the electronic portal of the Ministry of Labor.”from here” directly.
• Click on the system link icon from the main interface of the site.
• Complete the login process and then click on Job Security.
• Submit the benefit application after confirming eligibility.

Many of those who are able to work within the Sultanate’s territory want to know the eligibility conditions for the Oman Job Security Program, in addition to knowing how to apply for this benefit as well; as Article Twelve of the provisions of the Job Security System stipulates all the conditions that must be met by the subscriber to obtain the benefit, and we can apply via موقع Ministry of Labor as previously mentioned.