Oman sets new wage transfer compliance deadlines

MUSCAT: Oman’s Ministry of Labour (MOL) has announced updated regulations for the Wage Protection System (WPS) under Ministerial Resolution No. 729/2024, published in the Official Gazette on 15 December 2024.

The changes are designed to enhance transparency in salary payments and safeguard workers’ rights.

Beginning with September 2025 wages — payable in October — employers must ensure that at least 75% of their workforce is paid through the WPS. By November 2025 wages, payable in December, this threshold will rise to 90%. Non-compliance could result in financial penalties.

The WPS, aligned with Royal Decree No. 53/2023, tracks electronic wage transfers in the private sector, requiring payments to be made via banks or financial institutions regulated by the Central Bank of Oman.

Key updates include shorter timelines for wage disbursement, expanded exemptions, and increased Ministry oversight.

Exemptions apply in specific cases, such as labour disputes lasting more than 30 days, work suspensions beyond the employer’s control, approved absconding cases after 30 days, new hires who have not completed a month of service, and employees on unpaid leave.

The Oman labour ministry asserted that timely wage transfers are vital for ensuring fair labour practices, urging employers to act early to meet the phased targets.

According to the National Centre for Statistics and Information, Oman had 864,600 Omani workers across all sectors as of June 2025.