Minimum Annual Salary Increment Approved in Oman; Performance-Based System to Be Enforced
27 July 2025
The Ministry of Labour in Oman has issued Ministerial Decision No. 317/2025, setting the minimum rate for annual salary increments and the mechanism for granting them to Omani employees working in the private sector. Starting from 1 January every year, employees with at least six months of service will be eligible for an increment, based on their performance evaluation report.
Performance-Based Salary Increment Rates:
| Performance Rating | Basic Salary Increase |
|---|---|
| Excellent | 5% |
| Very Good | 4% |
| Good | 3% |
| Acceptable | 2% |
| Poor | Not eligible |
Employees rated as “Poor” will not receive any annual increment. Workers also have the right to appeal their performance evaluation results through the designated department at the Ministry.
Special Provisions for Transfers, Economic Conditions, and Violations:
- If the employee was transferred during the year, the entity where the employee served the longest is responsible for the evaluation, and the new employer must pay the increment.
- Employers may reduce the increment if economic hardship is proven, subject to approval from the committee mentioned in Article 45 of the Labour Law.
- The increment may be suspended in cases such as a pending criminal case at the workplace or unpaid leave exceeding 6 months. If cleared, payments will resume according to the regulations.
- A fine of OMR 50 per violating employee will be imposed on employers breaching the law.
Previous Regulation Repealed:
This decision officially repeals Ministerial Decision No. 541/2013 and any other provisions that contradict this regulation.
