Oman sets new wage transfer compliance deadlines for companies
Oman sets phased deadlines to boost wage transparency and protect workers’ rights
Muscat: Oman’s Ministry of Labour (MOL) has issued updated guidelines on the Wage Protection System (WPS), following Ministerial Resolution No. 729/2024, published in the Official Gazette on 15 December 2024.
The update aims to regulate the labour market and help employers avoid financial penalties. The Ministry emphasises strict compliance with wage transfer requirements as follows:
Starting with September 2025 wages (payable in October 2025), employers must transfer wages for at least 75% of their workers through the WPS.
By November 2025 wages (payable in December 2025), this requirement increases to at least 90% of all workers.
These measures are designed to ensure timely and transparent salary payments while protecting workers’ rights and welfare across Oman. The Ministry stated, “Adhering to these requirements is essential for safeguarding workers’ rights and promoting transparent wage practices in Oman’s labour market.”
How Wage Protection System works
On 15 December 2024, the Ministry issued Ministerial Decision No. 729/2024, introducing updates to the WPS in line with the labour law issued by Royal Decree No. 53/2023. Key changes include:
A reduced timeline for wage payments to employees.
Requirement that payments be made through banks or financial institutions regulated by the Central Bank of Oman.
Additional exemptions from the WPS.
Increased oversight by the Ministry of Labour.
The WPS monitors electronic wage payments to private sector workers, ensuring employers transfer wages directly to workers’ bank or financial institution accounts as agreed in employment contracts within the legally prescribed period.
Exemptions to Wage Protection System
Certain employers are exempt from using the WPS under specific circumstances:
Labour disputes causing work stoppage for more than 30 days.
Suspension of work for reasons unrelated to the employer for over 30 days.
Absconding reports approved after more than 30 days.
Newly hired workers who have not completed 30 days of employment.
Workers on unpaid leave.
According to the National Centre for Statistics and Information (NCSI), the total number of Omani workers across all sectors reached 864,600 by the end of June 2025.
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