Muscat – Private sector employers are required to pay workers’ wages through a regulated electronic system, as part of a new Wage Protection System (WPS) introduced by Ministry of Labour.

It follows Ministerial Decision No 729/2024, issued by H E Dr Mahad bin Ali Ba’owain, Minister of Labour, aimed at safeguarding employee wages and promoting financial transparency.

Under the new system, employers must transfer wages directly to employees’ accounts in banks or financial institutions regulated by Central Bank of Oman. The system is designed to ensure payments are made on time and in full, as stipulated in employment contracts and Oman’s Labour Law.

The decision also requires employers to update employment contracts whenever an employe- e’s wage changes. Employers are further obligated to transfer wag-es within a maximum of three days of wage payment date.

Exemptions to the WPS have been outlined in specific circumstances. Employers are not required to transfer wages through the system if a worker is involved in a labour dispute that results in absence from work for more than 30 days, is suspended from work for over 30 days for reasons not linked to the employer, or has been reported as having left work with 30 days having passed since the report’s approval. Other exemptions include new workers who have not completed 30 days of employment and workers on unpaid leave.

To ensure compliance, Minis-try of Labour has laid out administrative penalties for violations. Employers may face warnings and suspension of services until violations are resolved. There can also be fines – RO50 for each affected worker – with the penalty doubling for repeat offences.

The new regulations, issued on December 15, will come into force the day after their publication in the Official Gazette.