On January 14, 2024, the Ministry of Labour of Oman announced that small and micro companies must register in the Wages Protection System (WPS) within 55 days. The registration period for large and medium companies has already passed.
More Information about Oman’s Wages Protection System
- The Wages Protection System (WPS) is an electronic salary transfer system that allows companies in Oman to pay workers’ wages through banks or financial institutions approved and authorized to provide the service.
- In July 2023, the government issued a decree requiring private sector employers to transfer workers’ wages to locally licensed banks within seven days of the due date and giving large and medium size companies six months to implement the new rules.
- 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 and Analysis
Violations of the WPS requirements can lead to administrative penalties including a warning, suspension from work permit services and a fine of OMR 50, which can be doubled.
Erickson Immigration Group will continue to monitor developments and share updates as more news is available. Please contact your employer or EIG attorney if you have questions about anything we’re reporting above or case-specific questions.