Labour Ministry Issues New Wage Transfer Compliance Rules

MUSCAT: The Ministry of Labour in Oman has issued a clear directive emphasizing compliance with the new wage transfer requirements under Ministerial Resolution No. 729/2024, published in the official gazette on 15 December 2024. The resolution aims to regulate the labour market by ensuring the timely and transparent payment of workers’ wages through the Wage Protection System (WPS). Starting with the wages for September 2025, employers must transfer salaries for at least 75% of their workforce using this system, reinforcing the government’s commitment to protecting workers’ financial rights and preventing wage-related disputes.

As the resolution progresses, stricter compliance is required by November 2025, mandating the transfer of wages for at least 90% of all workers via the WPS. This incremental approach allows employers time to adjust their payroll systems and meet the higher threshold, supporting a smoother transition to full compliance. The wage protection framework facilitates government oversight and ensures that all employees receive their due payments promptly and securely, thereby promoting labour market stability and worker satisfaction across the Sultanate.

The Ministry of Labour continues to monitor the implementation of these requirements closely, warning establishments of possible financial penalties if they fail to meet the stipulated wage transfer percentages. This regulatory move aligns with Oman’s broader economic reforms to enhance labour rights and foster a transparent working environment. Employers are encouraged to leverage modern payroll technologies and comply fully to avoid disruptions and penalties, contributing to a fair and equitable labour market.

Furthermore, the ministry’s communication underscores its dedication to collaborative dialogue with businesses and workers to improve labour standards and enforce protections efficiently. This phased enforcement strategy reflects the government’s recognition of the diverse capacities of establishments while aiming for comprehensive coverage of the workforce in the Wage Protection System. The ongoing efforts highlight Oman’s commitment to advancing labour welfare and upholding international labour standards within its national framework.

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