Sharp decline in number of low-wage Omani workers

Data released by the National Centre for Statistics and Information (NCSI) indicated that the number of Omanis earning between RO325-RO400 and registered with the Public Authority for Social Insurance (PASI) sharply fell by 18.4% this year, declining from 88,911 in December 2022 to 72,553 in June 2023.

On the other hand, the number of Omani workers in the RO400-RO500 salary bracket remained relatively stable, with around 50,200 workers recorded in June 2023, similar to figures from six months ago.

The NCSI data showed a shift in the distribution of workers across various salary groups, notably with a substantial increase in the number of Omani workers earning monthly salaries exceeding RO500.

In particular, the number of Omanis earning between RO500-RO600 saw a notable growth of 7.7%, rising to 38,364 in June 2023 from 35,615 in December 2022. However, the data indicated no significant changes in the number of Omani workers earning between RO600-RO1,000.

The number of Omani workers earning between RO1,000-RO2,000 witnessed a 5% increase, reaching 37,079 in June 2023 compared to 35,290 recorded in December 2022. Additionally, those earning between RO2,000-RO2,500 totaled 7,349, representing a 5.9% increase from the 6,942 reported six months ago.

Moreover, the number of Omanis holding higher-level positions in the private sector, earning more than RO2,500 in monthly salaries, grew by 6.5% to 14,825 in June 2023 from 13,923 registered with PASI in December 2022.

The decline in the lower wage bracket of Omani workers and the growing number of better-paid positions in the private sector suggest a potential improvement in the sultanate’s job market.

The government’s Omanisation efforts to replace expatriate workers with Omanis are progressing in earnest and the Ministry of Labour has intensified its efforts to create employment opportunities for citizens by training and equipping them with additional skills.

Notwithstanding the positive trends in the medium and higher salary brackets, the overall total number of Omanis working in the private sector, registered with PASI, witnessed a decline of 3.6%. The data showed a decrease from 286,026 in December 2022 to 275,623 as of June 2023.

As per the NCSI figures, 44.5% of Omanis registered with PASI – as of the end of June 2023 – have insured monthly wages ranging from RO325 to RO500. Nearly 32% of Omanis registered with PASI work in the Muscat governorate.