• Oman

    • Oman’s MOL issues decision on Wages Protection System

    By on July 9, 2023
    OMANI
    OMANI

    The Ministry of Labour issued Ministerial Decision No. (299/2023) regarding the implementation of the provisions of the Wages Protection System (WPS).

    On the Wages Protection System

    In accordance with the Labour Law enacted by Royal Decree (35/2003), and the Royal Decree (89/2020) establishing the Ministry of Labour, determining its competences, and adopting its organisational structure, as well as the Ministerial Decision (222/2013) that specifies minimum wages for Omani employees in the private sector, and the Ministerial Decision (541/2013) concerning periodic allowances for Omani employees in the private sector, taking into consideration the public interest.

    Decreed as follows

    Article 1: The Wages Protection System, an electronic system jointly implemented by the Ministry of Labour and the Central Bank of Oman, shall be enforced. This system ensures the electronic transfer of employees’ wages in the private sector to their designated accounts in banks authorized by the Central Bank of Oman. It operates in compliance with the provisions stipulated in employment contracts and the timeframe prescribed by the Labour Law.

    Article 2: Employers are obligated to transfer employees’ wages to authorized local banks within a maximum period of seven (7) days from the due date, utilizing the salary information file of the Wages Protection System.

    Article 3: The Wages Protection Department within the Inspection Department shall be responsible for implementing necessary measures to monitor and enforce the electronic Wages Protection System. This includes overseeing wage disbursements in the private sector.

    Article 4: Employers must promptly update the Ministry regarding any changes to employees’ wages in their records, ensuring that the registered wages accurately reflect the actual amounts received by the employees.

    Article 5: Employers are exempted from utilizing the electronic Wages Protection System under the following circumstances:

    In cases of labour disputes resulting in the worker ceasing work.

    When a worker voluntarily terminates their employment without legal justification.

    For new employees who have not completed a period of thirty (30) days since commencing employment.

    For employees on unpaid leave.

    Article 6: Non-compliance with this decree may result in administrative penalties, imposed by the Ministry in accordance with the following progressive approach:

    Initial warning.

    Suspension of services related to preliminary work permits.

    Imposition of an administrative fine amounting to OMR 50 (fifty Omani Rials), with the fine being doubled for repeated violations.

    Article 7: This decree shall be published in the Official Gazette, and comes into force on the day following the date of its publication.

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