Muscat: The Ministry of Labour has warned that some companies are yet to register in the Wage Protection System (WPS) and not complying with the system by not transferring the salaries of their employees as per the procedures.
Three large companies, 475 medium companies, 14,165 small and 172,174 micro firms have still not registered with the WPS.
A total of 66 large companies, 536 medium companies, 10,659 small companies, and 46,137 micro companies have registered under the WPS, but have been not compliant.
In July 2023, the Ministry of Labour issued Ministerial Decision No. (299/2023) regarding the implementation of the provisions of the Wages Protection System.
Article 1 of the decision stated that WPS is an electronic system jointly implemented by the Ministry of Labour and the Central Bank of Oman to ensure the electronic transfer of employees’ wages in the private sector to their designated accounts in banks authorized by the Central Bank of Oman. It operates in compliance with the provisions stipulated in employment contracts and the timeframe prescribed by the Labour Law.
Employers are obligated to transfer employees’ wages to authorized local banks within a maximum period of seven days from the due date, utilizing the salary information file of the Wages Protection System.
The Wages Protection Department within the Inspection Department shall be responsible for implementing necessary measures to monitor and enforce the electronic Wages Protection System. This includes overseeing wage disbursements in the private sector.
Employers must promptly update the Ministry regarding any changes to employees’ wages in their records, ensuring that the registered wages accurately reflect the actual amounts received by the employees.
Employers are exempted from utilizing the electronic Wages Protection System in cases of labor disputes resulting in the worker ceasing work,
When a worker voluntarily terminates their employment without legal justification and for new employees who have not completed 30 days since
commencing employment and for employees on unpaid leave.
Non-compliance with the decision may result in administrative penalties, including an initial warning, and suspension of services related to preliminary work permits, imposition of an administrative fine amounting to RO50, with the fine being doubled for repeated violations.
Oman Observer is now on the WhatsApp channel. Click here
