Minimum Wage
Ministry of Manpower 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.
The current minimum wage for the Omani private sector employees is 325 Omani Rials per month (225 Omani Rials basic salary and 100 Rials as allowances). Ministerial Decision No. 541/2013 provides for mandatory increase in the basic salaries of Omani workers in the private sector at the rate of at least 3%, payable on the 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: §50 of the Labour Law (Royal Decree No. 35/2003); 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
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.
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.
An employer must deposit the worker's salary in 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 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.
An employer cannot transfer a monthly wage worker to the category of hourly, daily, weekly workers or workers on piece basis unless with the worker's written consent to transfer however in that case worker still will have all the rights of a monthly wage worker that he acquired.
In case of absence from work, employees are paid according 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.
Sources: §49-60 of the Labour Law (Royal Decree No. 35/2003)
