Towards a Social Protection Floor in Oman: Diagnostic & Development of an integrated multi-tier income support system in Oman
Project properties
- Status: In progress
- This project is part of the Global Flagship Programme on Building Social Protection Floors for All
Description
The Sultanate of Oman is undergoing a series of important reforms to accelerate progress with delivering its Vision 2040. Investment in social protection is critical to ensure ongoing economic and social transformation remain human centered. Not only a more comprehensive, adequate and efficient social protection system will cushion the most vulnerable and curb rising inequalities. It will also better equip individuals and firms to reap the opportunities that future economic and technological transitions will offer. As common for many countries in the region, the Social Protection system in Oman is highly fragmented and inefficient, and heavily reliant on universal subsidies. Like many countries, Oman has a fragmented social protection system with a prioritization of two population groups at opposite ends of the income scale: first group include salaried employees in the formal sector (public and private), particularly those in stable full-time employment relationships, who enjoy a relatively good protection in terms of contingencies covered and no coverage gap. The second group, vulnerable individuals covered under the social assistance arrangements, mainly administered by Ministry of Social Development. On 7th of April 2020, the Royal decree No 33/2021 was issued, establishing Social protection Fund (SPF) merging all the pension funds in Oman. Two royal decrees will follow within 1 year as follows: i. SPF system (bylaw) which identity the objectives and the roles of the fund, its Board of Directors which is tripartite (Government, Employer, and Workers) and their roles, the Executive management and its rule, and the other administrative and financial matters; ii. the Social Protection law which will include all the social protection schemes and programs, and their entitlements, conditions, finance, and related matters. The reform project is led by the National Program for Fiscal Balance (TAWAZUN), which approached the ILO and UNICEF to take the lead on the social protection reform. Thus, the steps needed to be conducted include: i. Assesses and redesign of the social protection system in line with strategic objectives reflected in Oman Vision 2040, international Social Security Standards and good international practice; ii. Propose a multi-tiered integrated system for income support benefits with strong synergies between contributory and non-contributory systems under a singular administrative framework; iii. Determine the range and key design parameters of non-contributory social protection benefits to be administered by the new unified social protection institution; iv. Explore financing options for alternative scenarios and assess the impact on poverty, inequality and vulnerability of the proposed social protection system; and v. Identify key elements of the new system design to be reflected in legislation.SDG
Goals
- Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all
Time
28.06.2021 - 31.12.2025
Budget
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Development Cooperation