Oman: New Wage System is Introduced for Private Sector Employees

In a significant initiative, Oman has introduced new regulations with the objective of protecting labor rights and ensuring equitable employment practices.

These recently introduced regulations, built upon the foundation of Oman's Labor Law (Royal Decree 35/2003), the establishment of the Ministry of Labour (Royal Decree 89/2020), and relevant ministerial decisions (222/2013 and 541/2013), demonstrate the government's commitment to creating a fair and equal work environment.

A key feature of the new regulations includes the mandatory electronic Wages Protection System (WPS). Implemented to guarantee the efficient distribution of wages, the Wages Protection System (WPS) enables private sector employees to receive their salaries directly into their designated bank accounts. This streamlined process ensures accurate payments, aligning with the terms specified in employees' contracts. The system enhances financial stability and cultivates trust between employers and workers.

As per the new regulations, employers are required to transfer employees' wages to authorized local banks within a maximum of seven (7) days from the due date. This process is facilitated by the user-friendly salary information file within the Wages Protection System (WPS), ensuring simplified wage disbursements

The Inspection Department's Wages Protection Department will play a crucial role in overseeing the electronic system's implementation and compliance, specifically monitoring wage disbursements within the private sector. By following these regulations, this dedicated team aims to ensure that employees receive their rightful earnings and that employers fulfill their payment obligations.