(MENAFN- Muscat Daily) Saleh bin Nasser al Araimi, director general of the Public Authority of Social Insurance (PASI) on Sunday said that amendments to the Social Insurance Law by Royal Decree 61/2013 will come into effect from July 2014.
The amendments include:
• Increasing the accrual factor to calculate pension from 2.5 per cent to three per cent for each year of service.
• Raising the minimum pension from RO150 to RO202.5 per month. The maximum eligible pension from PASI will remain 80 per cent of the new salary (basic plus allowances).
• Increasing the minimum pension in cases of non-occupational disability or death from 40 per cent of the basic salary to 50 per cent of the basic salary plus allowances, whichever is greater.
• Increasing the amount of daily allowances in the case of work injuries from 75 per cent of the daily wage to 100 per cent of the daily wage for the first six months then 75 per cent for the next six months after which the case will be evaluated by the medical committee which will decide whether the worker can remain in his/her job and
receive disability pension or continue receiving the daily allowances for a period it determines.
He added that the Royal Decree increases all pensions - except pensions due to partial disability - by five per cent provided that the said minimum is not less than RO202.5.
To finance these increase in benefits, the contribution rate has been increased by three per cent distributed as follows:
• Additional 0.5 per cent to be paid by the employee (new contribution rate becomes seven per cent instead of 6.5 per cent of the basic salary)
• Additional one per cent to be paid by the employer (new contribution rate becomes 11.5 per cent instead of 10.5 per cent of the basic salary).
• Araimi added that the government will pay the additional 1.5 per cent, raising its contribution from four per cent of the basic salary to 5.5 per cent.
• The government contribution to the social insurance scheme will be reviewed after five years from the date this Royal Decree comes into f
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.