Oman Enforces Wage Protection System for Private Employees

New system ensures timely wage payments and promotes financial transparency in the workplace.

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Oman Enforces Wage Protection System for Private Employees

The Ministry of Labour has introduced a Wage Protection System (WPS) requiring private sector employers to pay workers through a regulated electronic platform. This initiative, based on Ministerial Decision No. 729/2024, aims to safeguard employee wages and enhance financial accountability.

Under the new system, employers must transfer wages directly to employees’ bank accounts or financial institutions regulated by the Central Bank of Oman. Payments must be made on time and in full, as outlined in employment contracts and Oman’s Labour Law.

Contract Updates and Payment Deadlines

Employers are also required to update employment contracts whenever there are changes to an employee’s wages. Additionally, wages must be transferred within a maximum of three days from the scheduled payment date to comply with the regulations.

Exemptions to the Rule

Certain exemptions to the WPS have been outlined. These include:

- Workers involved in labor disputes resulting in over 30 days of absence.

- Employees suspended for reasons unrelated to the employer for more than 30 days.

- Workers reported as having left their job, with 30 days passing since the report’s approval.

- New hires within their first 30 days of employment.

- Employees on unpaid leave.

Penalties for Non-Compliance

To ensure adherence, the Ministry of Labour has introduced penalties for violations. Employers may face warnings, suspension of services, and fines of RO 50 per affected worker. Repeat violations will result in doubled penalties.

Implementation Date

The new rules, announced on December 15, will take effect the day after their publication in the Official Gazette. This move underscores Oman’s commitment to protecting workers’ rights and fostering a transparent financial system in the private sector.

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Oman Enforces Wage Protection System for Private Employees

Contract Updates and Payment Deadlines

Exemptions to the Rule

Penalties for Non-Compliance

Implementation Date

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