Wages based on skills not on degrees

Muscat: Academic qualifications will not be a deciding factor for minimum wages for Omanis in the private sector, according to a top official in the Ministry of Labour. Shaikh Nasr bin Amer al Hosni,, Under-Secretary of Ministry of Labour, said wages are linked to skills rather than academic eligibility. “Although the general minimum wages are mandatory, employers can decide on a higher salary depending upon the competency and skills of the potential job seekers”, Al Hosni said in an interview to Oman TV. While calling upon fresh graduates to take up jobs and earn the necessary experience, he said, salary should not be the factor that holds them back from starting a job. “We encourage beginners to get as much experience as possible from jobs so that they can get higher salaries once they are skilled in a particular profession,” he said. For example, a job seeker holding only a secondary certificate or General Education Diploma (GED) can still get a salary of RO1,000 if he has been competent and efficient with his tasks. Most of the job seekers are university graduates (bachelor or diploma) and the job market does not need all of them. “Most of the available vacancies require some level of work experience, which they will not get unless they take a job from any level.” Earlier in a circular, the Under-Secretary said, the new decision comes within the Fiscal Balance Program 2020-2024 plan (Tawazon), which includes two initiatives to review the Omanisation rates and abolish the minimum wage. The minimum salary for Omanis working in the private sector is currently set at RO 325, of which RO 225 is basic salary and RO 100 allowance. Oman’s labour law mandates that the employer deposits the wages in the employee’s bank account within seven days from the end of the period in which such wages become due. While welcoming the new initiative, Rashid al Balushi, human resource manager at a non-banking finance company, said that the new move will remove the discrimination of employees in the lower wage brackets. “While the minimum wages are mandated to be paid regardless of the qualification, skilled employees can still have contracts for higher wages,” he said. From February 2018, it is mandatory for all private sector employers to register on the wage protection system of the Ministry of Labour and provide up to date information on job and wage information of their workforce.