Minimum Wage
The minimum wage is set by the Ministry of Labour in consultation with the Joint Dialogue Committee and requires approval from the Council of Ministers.
Ministry of Manpower, now ministry of labour, determines the minimum wage rates for the employees of private sector and the procedures and conditions of their payment. Minimum wage is determined according to the economic circumstances (in the country). The minimum wage rates are determined for a certain category of workers who hold jobs or occupations, the circumstances or nature of which require such determination.
Ministerial Decision No. 541/2013 provides for a mandatory increase in the basic salaries of Omani workers in the private sector at the rate of at least 3%, payable on 1 January of each year. An employee must have spent at least six months of service with the same employer and should not have received poor performance in his annual report.
Source: §88 of the Labour Law (Royal Decree No. 53/2023); Ministerial Order No. 222 of 2013 fixing the Minimum Wage for Omani Workers in the Private Sector; Ministerial Order No. 541 of 2013 Limiting the Annual Allowances on the Employees Working in Private Sector Procedures and the Conditions for Dispensing it (https://decree.om/2013/momp20130541/)
For updated minimum wage rates, please refer to the section on minimum wage.
Regular Pay
Wages and other payments entitled to the employee are paid in the legal tender, i.e., the Omani Rial. Payment of wages in kind, if agreed between the parties, is also allowed. The basic salary refers to the cash amount agreed upon between the worker and the employer in the employment contract, including any periodic bonuses.
Employer is obliged to pay wages on a working day and at the workplace. The wage payment period varies between one week to one month. Employees appointed on monthly basis should be paid at least once a month. To the piece workers and for the work that requires a period of more than two weeks, weekly wage must be paid at the end of one week according to the work done (in a week) and full wage is paid in the week following the completion of work assigned to them. Whether the wage period is one week or one month, wages must be paid within seven days of completion of wage payment period. According to a resolution by the Minister, salaries may be paid before due date on national and official occasions.
Ministerial Decision 729/2024 shortens the payment deadline from 7 to 3 days, and places the burden of proof of wage payment on the employer.
An employer must deposit the worker's salary into the employee's account in one of the locally approved banks. Exceptions to this rule must be determined by resolution of the Minister.
If an employee has borrowed some money from the employer, the deduction must not be more than 15% of the monthly salary (for repayment of debt), and there must not be any interest applied on the loan. This percentage can be amended in case the employer introduces a loan system approved by the Ministry. Only one-quarter (25%) of a worker's wages can be attached or assigned for the discharge of alimony, or to repay any amounts owed by him to the government or to the employer. If the worker’s service ends, the government’s dues and the dues proven to the employer, if any, are deducted from the end-of-service.
Upon the Fund's request, the employer may deduct, within legal limits, amounts owed to the Fund from the insured person's monthly wage, as specified by regulations.
An employer cannot transfer a monthly wage worker to the category of hourly, daily, weekly workers or workers on a piece basis without the worker's written consent to transfer; however, in that case, the worker still will have all the rights of a monthly wage worker that he acquired.
If an employer terminates a worker’s employment, they are required to pay the worker’s wages and any other amounts due immediately. However, if the worker resigns voluntarily, the employer must settle all outstanding wages and dues within 7 days from the date the worker’s departure.
In case of absence from work, employees are paid according to the actual hours they worked; however, the salary is not deducted in case the employee is summoned to appear as a witness before the court or the public prosecutor.
There is no mandatory provision in law for a 13th or 14th month pay or a compulsory bonus. However, an employer may voluntarily provide a bonus based on employment contracts, collective bargaining agreements (CBAs), company policies or discretionary awards.
Source: §1, 68, 85-92, 94-97- of the Labour Law (Royal Decree No. 53/2023)
