Oman’s Ministry of Labour has issued warnings to 57,398 private firms for failing to adhere to its Wages Protection System (WPS) guidelines during its first year of operation.
Launched on July 9, 2023, the WPS aims to regulate salary transfers in the private sector and ensure employees receive timely payments. By August 20, more than 57,000 companies had registered with the system but had not yet processed salaries through it.
The ministry has divided these firms into categories based on size: large, medium, small, and micro. Warnings were issued as follows: 66 large companies, 536 medium-sized businesses, 10,659 small businesses, and 46,137 micro-businesses from January 10 to August 20.
Different deadlines have been set for compliance based on company size. Medium and large businesses were required to meet 50% compliance by November 9, 2023, and achieve full compliance by January 9, 2024. Smaller companies had until January 9 for 50% compliance and March 9 for complete adherence.
Failure to comply with the WPS can lead to penalties, including the suspension of initial labor permits and an administrative fine of OMR 50.
To address non-compliance, the ministry has sent SMS warnings to over 186,000 businesses and held awareness workshops across various governorates.
The WPS is a collaborative effort between the Ministry of Labour and the Central Bank of Oman (CBO) designed to protect workers’ rights and ensure timely salary payments through local banks and financial institutions.
