Ministry of Labour
Oman warns over 57000 private firms for not following Wages Protection System
Muscat: The decision on wages protection system (WPS) issued by the Ministry of Labour has completed one year as it was issued on 9 July 2023.
The ministry has also issued a circular annexed to the ministerial decision requiring the private sector establishments to adjust their conditions, accordingly.
The circular stated a six months’ period for medium and major establishments to achieve 50% by 9 November 2023 and 100% commitment by 9 January 2024.
As for small and minor establishments, the period for correcting their conditions ended on 9 January 2024 to achieve 50% and on 9 March 2024 to achieve 100 % commitment.
In case of violation to the decision, the Ministry may apply administrative penalty starting with suspension of issuance of initial labour permits and administrative fine of OMR50.
The Ministry of Labour has followed with registration of the establishments in the WPS and served warnings through SMS for the establishments not registered, which amounted to 18,6817 including three major establishments, 475 medium establishments, 14,164 small establishments and 172,174 minor establishments.
The total number of SMS amounted to 186,817 from 10 January to 16 May, 2024. There are 57, 735 establishments registered with WPS but not committed to transfer of salary through the system, including 66 major establishments, 536 medium establishments, 10,659 small establishments and 46,137 minor establishments.
The ministry has served warnings to these establishments and the number of SMS to them amounted to 57,398 from 10 January to 20 August 2024.
The ministry has organised awareness workshops for its employees and Sanad Offices / centres in the various governorates in cooperation with Oman Chamber of Commerce and Industry, General Federation of Oman Workers, Authority for Small and Medium Enterprises Development (ASMED) and other associations concerned.
WPS is a joint electronic salary transfer system between the Ministry of Labour and the Central Bank of Oman (CBO) which strictly observes and monitors transfer of wages of employees having local accounts with the banks and financial establishments licensed by the CBO.
The system aimed to protect the national and expatriate manpower and to ensure they receive their salaries within the prescribed period.
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