Muscat – Private sector businesses have raised concerns about the difficulties in complying with the Wage Protection System (WPS), highlighting its impact on their operations. The matter was discussed during the first meeting of the year held by Labour Market Committee of Oman Chamber of Commerce and Industry (OCCI) chaired by Mohammed Hassan al Ansi.

Business owners have pointed out challenges in following WPS regulations, particularly the fines imposed for non-compliance. Employers who fail to adhere to WPS face penalties ranging from warnings to service suspension and fines of RO50 per affected worker, with repeat violations inviting doubled fines.

Introduced under Ministerial Decision No 299/2023, WPS mandates private sector employers to pay wages through an electronic system regulated by Central Bank of Oman. Salaries must be deposited directly into employees’ bank accounts on time and in full, as stipulated by employment contracts and Oman’s Labour Law.

Ministry of Labour receives between 17,000 and 18,000 complaints annually related to wage payments, underscoring persistent issues faced by workers in receiving their dues. While WPS aims to modernise labour practices, protect workers’ rights and create a fair labour market, businesses are finding the transition challenging.

To address the challenges, the Labour Market Committee announced that it is studying the effects of WPS on private sector institutions in cooperation with relevant authorities. ‘The goal is to develop practical solutions that consider the interests of all parties, support economic growth and promote job creation,’ the committee stated.

Ansi emphasised the importance of collaborative efforts to overcome these challenges. “Joint work between different entities is essential to achieving a balanced and sustainable work environment,” he said, praising the role of the Labour Market Committee in addressing business concerns and formulating solutions that align with global trends.

Phased implementation of WPS will allow businesses time to adapt, with the Ministry of Labour providing sector-specific guidance and technical support. Despite these efforts, many businesses are still grappling with operational and financial adjustments to comply with the system.

The committee also reviewed its achievements of 2024 – challenges addressed and solutions implemented.