Oman’s Wages Protection System 1 Year of Compliance Challenges and Updates
The Ministry of Labour’s Wages Protection System (WPS) of Muscat, aimed at regulating salary transfers in Oman’s private sector, has completed one year since its introduction on July 9, 2023. The system has required businesses to comply with the guidelines set by the ministry.
As of August 20, 2024, a total of 57,735 establishments have registered with the WPS but have yet to transfer salaries through the system. This includes 66 large businesses, 536 medium-sized businesses, 10,659 small businesses, and 46,137 micro-businesses. The ministry has issued 57,398 warnings to these companies between January 10 and August 20, 2024.
In a circular attached to the ministerial decision, the ministry mandated that medium and large businesses achieve 50% compliance by November 9, 2023, and full compliance by January 9, 2024. Smaller companies were given until January 9, 2024, to meet 50% compliance, and until March 9, 2024, for full adherence.
Non-compliance with the Wages Protection System (WPS) could result in penalties, starting with suspending initial labor permits and an administrative fine of OMR 50. To ensure implementation, the Ministry has been monitoring registration. It has issued warnings through SMS to 186,817 businesses, including three large companies, 475 medium-sized enterprises, 14,164 small businesses, and 172,174 micro-businesses, between January 10 and May 16, 2024.
In addition to enforcing compliance, the ministry has organized awareness workshops across various governorates in collaboration with the Oman Chamber of Commerce and Industry, the General Federation of Oman Workers, the Authority for Small and Medium Enterprises Development (ASMED), and other relevant organizations.
The Wages Protection System (WPS) is an electronic system developed jointly by the Ministry of Labour and the Central Bank of Oman (CBO) to ensure that employees, both national and expatriate, receive their wages through local banks and financial institutions licensed by the CBO. The system aims to safeguard workers’ rights by ensuring timely salary payments.
