The Oman Ministry of Labour has issued a decree on the Wages Protection System (WPS), effective July 10, 2023, requiring private sector employers to transfer workers’ wages to locally licensed banks within seven days of the due date.
What to Expect
- Large and medium size companies have six months to implement the new rules
- Small and micro companies have eight months to implement
- All companies must be 50% compliant within four months
The employer must update employment contracts with the Ministry when there is any change in the wages of the workers, and these contracts must specify the actual wage that the worker receives.
The decree allows certain exemptions from the requirements for labour disputes, unjustified resignations, new employees and employees on unpaid leave.
Erickson Insights & Analysis
Violations of the WPS requirements will lead to administrative penalties including a warning, suspension from work permit services and a fine of OMR 50, which can be doubled for repeat violations.
Erickson Immigration Group will continue to share updates as more news is available. If you have questions about anything we’re reporting above or case-specific questions, please contact your employer or EIG attorney.