Public Authority for Social Insurance (PASI) in Oman
The Public Authority for Social Insurance (PASI) is a key institution in the Sultanate of Oman, overseeing the administration of social insurance benefits and pension schemes for employees. Employers using Zoho Payroll must understand PASI to ensure compliance and provide employees in Oman with essential benefits.
PASI is responsible for managing social insurance systems that safeguard employees’ financial well-being, particularly during retirement and times of need. As an employer, here are key points to consider:
Mandatory Contributions
Both employers and employees are obligated to make monthly contributions to PASI. These contributions are calculated based on the employee’s salary through Zoho Payroll, ensuring accuracy.
Authority | Employees’ Contribution | Employer’s Contribution | Can be renewed at the start of the fiscal year? | Applicable for Citizens of |
---|---|---|---|---|
Public Authority for Social Insurance (PASI) | 7.00% | 10.50% | Yes | Oman |
Benefit Entitlements
PASI provides a range of benefits, including retirement pensions, disability benefits, and social security coverage. These benefits serve as a safety net for employees, offering financial support in various life situations.
Compliance and Reporting
Employers must stay compliant with PASI regulations. This involves reporting the maximum contributory wage for employees and updating any changes in employment status.Â
Configuring PASI in Zoho Payroll
Pre-requisite:Â Ensure that you have created or imported employees who are Omani nationals.
- Click Settings in the left sidebar of Zoho Payroll.
- Select Social Security.
- Click Edit in the Public Authority for Social Insurance (PASI) card.
- Enter the Maximum Contributory Wage. This is the salary limit to which both employer and employee contribution rates apply.
- Choose the option to Postpone the updated PASI contributions due to Salary revisions to the next calendar year if you wish to delay deductions resulting from salary revisions until the following calendar year.
- Click Save.
Pro-tip:
View Salary Components Used for PASI Contributions
Understanding how the salary contributes to PASI is vital. Click the View Salary Components Used for PASI Contribution option to view the specific salary components is used to calculate the maximum contributory wage, providing transparency in the allocation of your salary towards PASI contributions.