Oman’s New Wage Rules from August 14, 2025 – Salary Deadlines, Penalties & What Workers Must Know

On August 14, 2025, Oman’s Ministry of Labour announced a major update to the Wage Protection System (WPS), introducing new compliance deadlines to protect private sector workers and ensure timely salary payments. The updated regulations, issued under Ministerial Decision No. 729/2024, set clear rules for salary transfers and outline strict penalties for violations.

Under the new schedule, companies must transfer at least 75% of salaries for September 2025 (paid in October) through the WPS. This requirement increases to 90% for November 2025 salaries (paid in December). The phased approach gives businesses time to adapt while ensuring stronger protection for employees.

Failure to comply could result in official warnings, suspension of initial work permit services, and fines of RO 50 per employee, doubled for repeat violations. The Ministry has also outlined certain exceptions, including labour disputes lasting over 30 days, uncontrollable business disruptions, newly hired staff with less than 30 days of service, approved unpaid leave, and absences with official approval.

The WPS ensures that salaries are transferred through approved banks or financial institutions, creating a transparent and traceable payroll process. Businesses are advised to review contracts, align payroll systems with the WPS, and coordinate with banks to ensure timely compliance. Many firms are now adopting electronic payroll systems to meet the deadlines efficiently.

Experts believe these rules will improve employee trust, enhance Oman’s labour market governance, and strengthen the country’s investment climate. Timely wage transfers not only benefit workers but also boost the nation’s image for fair labour practices. Additionally, the new system will promote financial inclusion, ensuring workers have secure and direct access to their wages.

From August 14, 2025, Oman’s private sector enters a new chapter of accountability and fairness — setting an example for labour reforms across the Gulf region.