Khaberni - The President of the Economic and Social Council, Musa Shteiwi, stated that early retirement is among the main challenges faced by the system of the Social Security public institution in past years, indicating that the amended law project for the Social Security Law of 2026 was introduced to address this issue and enhance financial sustainability.
Shteiwi explained during his appearance on "Al-Mamlaka" that the cabinet approved the justifications for the amended draft law, in a move aimed at reducing the expansion of early retirement, due to its direct impacts on the financial status of the Social Security.
He highlighted that a number of institutions in the public and private sectors had resorted to retiring their employees early as a way to reduce operational costs, which placed additional pressure on the Social Security fund, especially since a large percentage of early retirees returned to the job market in different forms, which emptied early retirement of its insurance purpose and affected financial balances.
He noted that the proposed amendments aim to correct the path and control the eligibility criteria, ensuring the protection of the rights of subscribers and retirees, and enhancing the long-term sustainability of the social protection system.
Shteiwi affirmed that addressing the early retirement file represents a necessary reform step to preserve the financial stability of the social security system and ensure its ability to meet future obligations.
The cabinet decided in its session held on Tuesday, chaired by Prime Minister Jafar Hassan, to approve the justifications for the amended draft law for the Social Security Law of 2026.
The aim of the draft law is to enhance the social protection system, broaden it to include new categories, achieve a balance between the rights of the insured, and enhance the sustainability of the insurance system.
The draft law also aims to enhance the independence of the Social Security Public Institution and the governance of its decision-making mechanisms, through restructuring the institution and developing its model to reflect that of the central bank, whereby a governor for the institution is appointed by a decision of the cabinet, associated with the royal will, with clear definitions of his duties and powers within the provisions of the law, meaning that a minister in the government will not chair the board of the institution.
The draft law regulates retirement conditions, whereby mandatory retirement is the norm and early retirement is the exception; this is to ensure the sustainability of the insurance system and protect the rights of the insured.
