The Ministry of Labour’s decision on the wages protection system (WPS) in Oman has now completed its first year since being issued on July 9, 2023. The ministry has issued a circular alongside the ministerial decision, requiring private sector establishments to adjust their conditions accordingly. Medium and major establishments have been given a six-month period to achieve 50% compliance by November 9, 2023, and 100% commitment by January 9, 2024. Similarly, small and minor establishments have until January 9, 2024, to achieve 50% compliance and until March 9, 2024, for 100% commitment. In case of violations, the Ministry may impose administrative penalties, including the suspension of initial labor permits and an administrative fine of OMR50.
The Ministry of Labour has taken steps to ensure compliance with the WPS, including registering establishments and sending warnings through SMS to those not yet registered. As of May 16, 2024, a total of 186,817 SMS warnings were sent to establishments, including three major establishments, 475 medium establishments, 14,164 small establishments, and 172,174 minor establishments. Additionally, there are 57,735 registered establishments that have not yet committed to transferring salaries through the system, including 66 major establishments, 536 medium establishments, 10,659 small establishments, and 46,137 minor establishments. The ministry has sent over 57,398 SMS warnings to these establishments from January 10 to August 20, 2024.
To further promote awareness and compliance with the WPS, the Ministry of Labour has organized workshops for its employees and Sanad offices/centers in various governorates. These workshops have been conducted in cooperation with organizations such as the Oman Chamber of Commerce and Industry, the General Federation of Oman Workers, the Authority for Small and Medium Enterprises Development (ASMED), and other relevant associations. The WPS is a joint electronic salary transfer system between the Ministry of Labour and the Central Bank of Oman (CBO), which carefully monitors and oversees the transfer of employee wages for those with local bank accounts licensed by the CBO.
The primary goal of the WPS is to protect both national and expatriate workers by ensuring they receive their salaries within the stipulated period. By introducing this system, the Ministry of Labour aims to promote transparency and accountability in salary payments, safeguarding the rights of employees and preventing any potential labor disputes related to wages. The WPS also helps in reducing the likelihood of salary delays or non-payment, providing a secure mechanism for wage transfers that benefits both employees and employers. Through effective implementation and enforcement of the WPS, the Ministry of Labour is working towards creating a fair and equitable work environment that upholds the rights and interests of all workers in Oman.
