Tuesday, July 23, 2024
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Muscat – H E Dr Mahad bin Said bin Ali Ba’owain, Minister of Labour, has issued Ministerial Decision No 299/2023, mandating the implementation of the Wages Protection System (WPS). The electronic system, jointly developed by the Ministry of Labour (MoL) and the Central Bank of Oman, ensures the secure and timely transfer of employees’ wages in the private sector to their authorised bank accounts.

Under the decision, employers are obligated to transfer employees’ wages to local banks within a maximum of seven days from the due date, utilising the salary information file of the WPS. Prompt updates to the ministry regarding any changes to employees’ wages are also required to ensure accurate records that reflect the actual amounts received by employees.

Certain exemptions from utilising the WPS are provided in emergency cases, including labour disputes resulting in work cessation and voluntary termination of employment without legal justification. New employees within the first 30 days of employment and employees on unpaid leave are also exempt from the system’s application.

The ministry’s inspection teams will monitor the implementation of the WPS and ensure payment of wages to private sector employees. Violators of the system will face sanctions, including initial warnings for non-compliance, suspension of services related to preliminary work permits, and imposition of an administrative fine of RO50. The fine will double for repeated violations.

Sheikh Mohammed bin Ghaleb al Hinai, Chairman of the Main Committee for the completion, operation and development of the WPS, informed that it has undergone numerous enhancements to ensure seamless transactions and the confidentiality of information.

An executive committee, established in March 2022, has been working on the final development of the system, comprising officials of the Ministry of Labour, Ministry of Transport, Communications and Information Technology, Central Bank of Oman, Oman Chamber of Commerce and Industry, General Federation of Oman Workers, and Public Authority for Social Insurance.


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