Muscat – Ministry of Labour (MoL) has urged private sector employers to meet the updated requirements of the Wage Protection System (WPS) in line with Ministerial Decision No 729/2024, issued on December 15, 2024 warning that non-compliance could result in penalties.

Under the directive, companies must ensure wages are transferred to employees through the WPS, with at least 75% of the workforce covered from September 2025 wages, payable in October, and 90% from November 2025 wages, payable in December.

MoL said the move aims to regulate the labour market, protect employee wages and improve financial transparency.

The 2024 decision updated the WPS in accordance with the Labour Law issued via Royal Decree No 53/2023, replacing Ministerial Decision No 299/2023 and revoking any conflicting provisions.

The WPS electronically monitors wage payments to private sector workers and requires employers to transfer salaries to bank accounts or financial institutions regulated by Central Bank of Oman within three days of the end of the wage entitlement period.

Employers are also required to update employment contracts whenever there are changes to wages, ensuring that the actual wage is reflected in the contract.

Exemptions from WPS compliance apply in cases of labour disputes resulting in work stoppages exceeding 30 days, suspension of work for reasons beyond the employer’s control for more than 30 days, absconding cases where over 30 days have lapsed since approval, newly hired employees with less than 30 days of service, and employees on unpaid leave.

Employers may submit requests for additional exemptions to a committee within the MoL for review.

To enforce compliance, the ministry can issue warnings, suspend services such as preliminary work permits, and impose fines of RO50 per worker for violations, with the amount doubled for repeated offences. MoL has called on employers to review their wage payment processes and ensure timely transfers through the WPS to avoid operational disruptions and financial penalties.

For more details, visit www.mol.gov.om