“Oman implements a new Wage Protection System directive for private sector workers”

Oman’s Ministry of Labour recently issued a ministerial order (No. 299 of 2023) on the Wage Protection System (WPS) that requires private sector employers to transfer workers’ wages to locally licensed banks within a maximum of seven days from their due date…

Article 2 of the ministerial order stipulates that contracts must accurately specify the wage received by each worker and that employers must update work contracts with the Labour Ministry whenever there is a change.

Oman has repeatedly issued new plans for electronic wage payment systems, but enforcement and compliance have been weak. Oman amended its labour law in 2014 to require salaries to be deposited with locally licensed banks. A “second” WPS was announced in 2017 to improve compliance through more efficient procedures. The new ministerial order appears to be the latest iteration of the system with a more extensive regulatory framework.

Article 3 of the new ministerial order states that the "Wages Protection Section" within the Inspection Department of the Labour Ministry will assume responsibility for monitoring and implementing the electronic wage protection system, as well as overseeing wage disbursement operations in the private sector…