ISLAMABAD September 05, 2024 (TDI): Oman’s Ministry of Labour’s Wages Protection System (WPS) reprimanded 57,398 private companies for not complying with guidelines framed to ensure that national and foreign workers receive their salaries through banks.
The Ministry of Labour’s Wages Protection System (WPS) of Muscat introduced the guidelines on July 9, 2023, for regulating salary transfers in Oman’s private sector.
As many as 57,735 companies have registered with the WPS till August 20, 2024. The firms registered WPS have yet not started transferring salaries of their employees through the WPS.
Out of 57,735, 66 are large businesses, 536 are medium-sized businesses, 10,659 are small businesses, and 46,137 are micro-businesses.
According to the notification attached to the ministry decision, it wants medium and large-sized businesses to reach 50% compliance by November 9, 2023, and complete compliance by January 9, 2024. Completion of percent compliance by January 9, 2024 and full compliance by March 9, 2024.
Fines for Non-Complaint Companies
The ministry says that penalties will be imposed against companies in case of non-compliance with WPS guidelines. The fine includes suspension of the initial permit and a fine of OMR 50.
The ministry has been monitoring and regularly issuing warning via SMS to 186,817 businesses, including three large companies, 475 medium-sized businesses, 14,164 small businesses, and 172,174 micro-businesses, between January 10 and May 16, 2024, to ensure strict implementation of guidelines.
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The ministry has held several awareness workshops in collaboration with the Oman Chamber of Commerce and Industry, the General Federation of Oman Workers, the Authority for Small and Medium Enterprises Development (ASMED), and other relevant organisations.
The WPS is a joint electronic system established by the Ministry of Labour and the Central Bank of Oman (CBO) to guarantee that national and foreign workers receive their salaries through banks and financial institutions authorised by the CBO.
