Oman Sets New Bonus Rules for Private Sector Workers

Oman Sets New Bonus Rules for Private Sector Workers

Oman Announces New Bonus System for Private Workers

Oman has introduced a new rule for giving bonuses to workers in the private sector. The rule is based on Royal Decree No. 53/2023 and Ministerial Resolution No. 541/2013.

From now on, Omani workers will get performance-based bonuses every year on January 1. To qualify, a worker must have worked for at least six months at the same company.

Bonus Amounts Based on Ratings:
Excellent: 5% of basic salary

Very Good: 4%

Good: 3%

Acceptable: 2%

Poor: No bonus

This new system aims to reward hard-working employees and motivate others to do better.

Right to Appeal
If an employee disagrees with their performance rating, they can file an appeal through the Ministry of Labour’s office.

If a worker changes jobs during the year, the company where they worked the longest must write their performance report, but the new company has to pay the bonus.

Bonus Suspension Rules
Bonuses can be stopped or reduced if:

The worker is under investigation. If found not guilty, the bonus must be paid later.

The worker takes unpaid leave or is absent for more than six months.

The company has financial problems (with Labour Law approval).

Penalty for Employers
If a company does not follow these rules, it will be fined OMR 50 for each affected employee.

Oman’s Workforce in 2025
Total Omani workers: 864,600

Omani workers in the private sector: 406,000

Foreign workers in the private sector: 1.4 million

This new rule helps bring Oman’s bonus system closer to international standards and supports a fairer, more motivated workplace.