Oman’s New Labor Law: Electronic Wage Payment in the Private Sector

The Ministry of Labou in Oman has issued Ministerial Decision No. 729/2024, introducing stricter regulations to enhance the Wage Protection System (WPS) for private sector establishments. These measures aim to safeguard workers’ rights and promote greater transparency in wage payments.

The new guidelines build upon the Labour Law issued under Royal Decree No. 53/2023, emphasizing timely and transparent salary disbursements.

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Key Features of the New Law

🔹 Mandatory Electronic Payments
Employers are required to transfer employees’ wages through bank accounts regulated by the Central Bank of Oman, ensuring:

• Salaries are paid on time.
• Payments comply with official contracts.
• Financial records are transparent and accurate.

🔹 Strict Deadlines

• All salary transfers must be completed within three days of the end of the payment period.

🔹 Enhanced Monitoring

• A dedicated unit within the Ministry will oversee implementation, maintain a centralized database, and ensure compliance with the law.

🔹 Exemptions
Certain cases are exempt from these requirements, including:

• Ongoing labor disputes.
• Employees on unpaid leave.
• Workers employed for less than 30 days.

🔹 Penalties for Non-Compliance
Employers failing to comply with the new regulations may face:

• Official warnings.
• Financial penalties.
• Suspension of work permits until violations are resolved.

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Implementation and Objectives

This decision, which replaces Ministerial Decision No. 299/2023, is effective immediately upon its publication in the Official Gazette. It reflects the government’s commitment to:

• Protecting workers’ rights.
• Promoting fairness in the workplace.
• Ensuring transparency in wage payment processes.

✨ The new law marks a significant step toward fostering social equity and improving working conditions in Oman’s private sector. ✨