Oman issues new regulations for wage protection system in private sector

Muscat: The Ministry of Labour (MoL) has issued Ministerial Decision No. 729/2024, introducing updates to the Wage Protection System (WPS) in alignment with the Labour Law issued by Royal Decree No. 53/2023. The decision aims to ensure timely and transparent wage payments for private sector employees.

Key Provisions of the Decision:

Monitoring Wage Payments:
The Wage Protection System will electronically oversee the payment of wages, requiring employers to transfer wages to employees’ accounts in banks or financial institutions regulated by the Central Bank of Oman. Payments must align with the terms outlined in the employment contract and adhere to legally defined timelines.

Employment Contract Updates:
Employers must update employment contracts if any changes occur to a worker's wages, ensuring that the revised contract reflects the accurate wage.

Wage Transfer Deadlines:
Employers are mandated to transfer wages through the WPS within three days from the end of the wage entitlement period.

Monitoring and Database Management:
A designated division within the Ministry of Labour will monitor the WPS’s implementation, record transactions, and maintain a comprehensive database.

Exemptions to Wage Transfers via WPS:

Employers are exempt from using the WPS in specific cases, including:

    * Labour disputes resulting in work cessation for over 30 days.
    * Suspension of work due to reasons unrelated to the employer for over 30 days.
    * Absconding reports filed with over 30 days’ approval lapse.
    * Newly hired workers who have not completed 30 days of employment.
    * Workers on unpaid leave.

Additional Exemptions and Enforcement:

A Ministry of Labour committee will review and decide on exemption requests not covered by Article Five. Violations of the WPS provisions may result in penalties, including warnings, suspension of initial work permit services, or fines of OMR 50 per worker, which will double for repeated offences.

The decision also revokes Ministerial Decision No. 299/2023 and any conflicting provisions. It will be effective from the day following its publication in the Official Gazette.

This updated regulation reinforces Oman’s commitment to safeguarding workers’ rights and promoting accountability in private-sector wage practices.