Oman sets minimum periodic bonuses for Omani workers in private sector
Ministry of Labour has issued a decision determining eligibility criteria for bonuses
Muscat: The Ministry of Labour has issued a decision determining the eligibility criteria for the minimum periodic bonus for Omani workers in the private sector and the regulating conditions of its disbursement.
According to the Ministry’s guidelines, Omani workers in the private sector are eligible for an increase on their basic salary depending on their performance, which is due annually on January 1.
The resolution, based on the Labour Law issued under Royal Decree No. 53/2023, and the Ministerial Resolution No. 541/2013, aims to enhance transparency and fairness in annual performance-based allowances, while safeguarding employee rights.
The Ministry stated that Omani employees are entitled to this bonus under specific conditions outlined in the Labour Law and related ministerial decisions.
Omani workers will be entitled to a periodic bonus every January 1, provided they have employed at least six months of service at their establishment and this bonus shall be based on the outcome of their performance evaluation, and shall be paid at a minimum rate as follows:
5 per cent of the basic salary if the worker receives an 'Excellent' evaluation.
4 per cent of the basic salary if the worker receives a 'Very Good' evaluation.
3 per cent of the basic salary if the worker receives a 'Good' evaluation.
2 per cent of the basic salary if the worker receives an 'Acceptable' evaluation.
The worker shall not be entitled to a periodic bonus if they receive a 'Poor' performance evaluation.
In all cases, the employee has the right to appeal the result of their performance evaluation to the relevant administrative division within the Ministry.
Also, the establishment in which the employee has spent the longest period of one year shall be responsible for preparing the performance report. The establishment to which the employee is transferred shall be obligated to pay the periodic bonus due.
When can employer suspend bonuses?
The employer may reduce the periodic bonus if the establishment can demonstrate an economic justification for doing so, provided that approval is granted by the committee referred to in the Labour Law.
The employer may suspend the periodic bonus in the following cases:
If the employee is accused of committing a misdemeanour or felony in the workplace and is referred for investigation by the competent authorities. Should a final judgment acquit the employee, the establishment shall be obligated to pay the suspended periodic bonuses in accordance with the provisions of this decision.
If the employee takes unpaid leave under the provisions of Articles 80 and 83 of the Labour Law, or is absent from work for more than six months during the year in which the periodic bonus is calculated.
The periodic bonus shall continue to be paid to the employee once the reason for its reduction or suspension ceases, in accordance with the provisions of this decision.
Fine for law violators
An administrative fine of 50 Omani riyals shall be imposed on any employer who violates the provisions of this decision. The fine shall be multiplied by the number of employees affected by the violation.
Meanwhile, the total number of Omani workers in all sectors by the end of June stood at 864,600 workers, including 406,000 workers in the private sector, 390,000 employees working in the government sector, 67,200 workers in the family and civil sector, according to the statistical bulletin issued by the National Centre for Statistics and Information (NCSI).
The data indicated that the total number of expatriate workers in the Sultanate of Oman by the end of June reached 1.8 million workers. Their total number reached 1.4 million in the private sector, 41,000 in the government sector, 349,000 in the domestic sector, and 6.800 in the family sector.
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