The establishment of the social insurance system in our country is the result of the enactment of Law No. (16) for the year 1987, implemented by the General Organization for Social Insurance, which was established by Law No. (17) of 1987. This Law clearly contains a number of basic principles on the concept of decentralization and democracy and the principle of partnership and partnership. The articles of the law provided for the partnership process through representing the workers' union and the union of the chambers of commerce and industry for the owners of the businesses and entities related to the insurance activity in the board of directors of the institution.
- Monthly contributions made by the employers of the institution and those deducted from the wages of the insured according to the provisions of the law.
- Additional amounts and delay penalties due to the Corporation in accordance with the provisions of the law
- Amounts allocated by the State to the Foundation.
- Amounts paid by the Insured to the Foundation for the end of service benefit calculated in accordance with the provisions of the Law for the period of service prior to participation in the Foundation.
- Other resources resulting from the activity of the institution.
- Donations, donations and donations proposed by the Board of Directors of the Foundation.
- Proceeds of investments of the Foundation's funds.
- The financial and accounting system of the institution was designed by international and local experts and specialists in accordance with the principles of modern modern accounting system combined with the unified financial and accounting system in our country which is what made it The system is characterized by precision and precision.
Law No. 17 of 1987 stipulates that the financial year of the Foundation shall start from the first of January and end on 31 December of each year.
As for the annual budget of the institution, the same law affirmed that the institution has an annual budget along the lines of the commercial budgets, that the accounts of the institution annually audited by one or more legal accountors to be appointed and the remuneration determined by a decision of the Board of Directors of the institution and subject to his appointment and work plan to supervise and guide the Central Agency for Control and Accounting The apparatus stipulated in the laws in force.
While the law confirmed the examination of the financial position of the institution at least once every five years, with the knowledge of one or more actuarial experts appointed by the board of directors, so that the first examination of the financial status of the institution after the expiration of three years from the date of the law.
The examination of the financial position of the institution shall also include assessing the value of the existing obligations. If a deficit is found, the actuary shall explain the reasons for the deficit and the means to avoid it. The government shall make a payment and the government shall pay such a debt.
In order to restore the unity of the blessed homeland and the establishment of the Republic of Yemen on May 22, 1990, the unification of the insurance system was one of the priorities of the Unity State. It focused on integrating the insurance and pension systems of the two countries as one of the most important social protection systems that provide guarantees for a wide segment of society In the event of realizing the risk of disability, old age and death, where the consolidation process was carried out on a legislative and institutional basis. Law No. (1) of 1981 was incorporated on pensions and end of service benefits for employees of the government and public sectors, Of Aden then it promulgated Law No. 25 of 1991, as well as Law No. 26 of 1991 regulating insurance protection for employees in the public sector, mixed or private sector.