Timely Wage Transfers: How Oman’s New MoL Penalties Impact Your Business Operations
The Ministry of Labour has issued a reminder emphasizing the importance of transferring workers’ wages through the Wage Protection System (WPS) to avoid financial penalties. The directives are as follows:
- By September 2025, at least 75% of all workers in each establishment must have their wages transferred via the WPS.
- By November 2025, this requirement increases to at least 90% of the total workforce in each establishment.
The Wage Protection System is an electronic platform that facilitates salary payments through banks or authorized financial institutions. It enables the Ministry of Manpower (MOMP) to maintain a comprehensive database of wage disbursements in the private sector, ensuring timely and full payment of agreed wages.
This system applies to all companies registered with the Ministry of Manpower across all sectors and industries and serves various categories of workers.
Objectives of the WPS include:
- Safeguarding workers’ rights as prescribed by law and providing a safe working environment.
- Enhancing the Sultanate’s reputation internationally and in labor-sending countries by upholding workers’ rights.
- Promoting a stable relationship between employers and employees.
How the WPS operates:
- Employers are required to transfer salaries directly to employees’ bank accounts through banks and financial institutions regulated by the Central Bank of Oman (CBO).
- Employers submit a salary data file detailing payments.
- The Ministry of Labour’s Wage Protection Department monitors these transactions and maintains a central database to record all wage payments.
This system ensures transparency and protects the financial rights of the workforce across Oman’s private sector.
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The Ministry of Labour’s enforcement of the Wage Protection System (WPS) mandates that businesses transfer at least 75% of wages electronically by September 2025 and 90% by November 2025, creating a significant compliance requirement for all employers. This move protects worker rights and enhances Oman’s labor market transparency, but also imposes operational and financial risks on companies not yet fully integrated with digital payroll systems. Smart investors and entrepreneurs should prioritize digital wage payment infrastructures and consider this shift as an opportunity to improve workforce stability and attract quality talent in line with international labor standards.
