The Oman Society of Contractors (OSC) has welcomed the government directive on hiking the minimum gross salary of Omanis to RO325, with effect from July 1.
Addressing a gathering of contractors on Tuesday, the chairman of OSC, Dr P Mohammad Ali, said that the construction sector and contractors will abide by the government directive.
“The government has taken the correct step to attract more Omanis to the private sector. OSC is confident that the government will reimburse all related costs, including the knock-on effect incurred as a result of the changes, as per Clause 70 of the standard conditions of contract. However, the late processing of these costs will affect contracting companies and these will be factored into new tenders. We will represent our concerns and issues to the authorities, such as Ministry of Manpower, Ministry of Finance and Tender Board,” Dr Ali said.
Speaking on the occasion, Amer Suliemani, general secretary of OSC, said, “The efforts of the umbrella organisation of contractors, which is strongly united, have not yielded any positive and tangible results, as promised by the government on many occasions.
“Moreover, the sectorial committee had submitted many proposals on enhancing the status of Omani employees; but this decision has come out of the blue and does not take into consideration realistic circumstances. If the government does not reimburse the relative expenses of ongoing projects, many companies will become insolvent and this could lead to greater consequences.
“The contractors had requested the government not to impose the directive before the due date. The members are thankful for the consideration but the new announcement does not help companies decide on whether the hike incorporates allowances, pension benefits and the percentage proportion for basic and allowances, which will also affect company operations and drive prospective investors away,” Suliemani added.