MoL Completes Study on Raising Minimum Wage: What It Means for Businesses and Investors in Oman
Muscat: Majlis Ash’shura recently hosted the Minister of Labour during its regular sessions to discuss key developments in the labor sector.
The Minister reported that the Omanisation rate in the private sector reached 15.5% of the total workforce, which numbers 1,859,206 workers as of October 2025.
A study on raising the minimum wage has been completed and is currently under review by relevant authorities. The Minister explained that the Ministry undertook extensive consultations with stakeholders to explore the possibility of increasing the minimum wage to ensure a just standard of living while maintaining market stability and considering prevailing economic conditions. Approval of the proposed adjustments is anticipated soon.
During the sessions, labour policies were discussed alongside the Ministry’s plans as outlined in the Tenth Five-Year Plan (2021–2025) and Oman Vision 2040.
A committee has been established to study the promotion mechanism linked to the Ejada system, with outstanding performers expected to benefit from this initiative.
The Tenth Five-Year Plan has also introduced multiple initiatives focused on Omanisation and workforce replacement programs, contributing to the creation of new job opportunities.
Regarding the termination of employment among Omani workers, the Minister noted that 54.5% of cases were due to the end of contract periods, 29.7% resulted from the completion of projects, and 9.6% were due to arbitrary dismissals.
The discussions further covered employment trends in both public and private sectors, digital transformation initiatives, and updates to legislation governing work in these sectors.
The Minister highlighted ongoing efforts to establish a national labour database, which will be electronically linked with various entities to improve workforce management.
Addressing the challenges faced in the labor market, the Minister acknowledged difficulties in absorbing new employees and facilitating workforce transfer between companies amidst current economic conditions.
Currently, the total number of job seekers stands at 73,319, including 38,428 females. Among university graduate job seekers, females lead with 18,320, whereas males represent the largest group (20,216) among those holding a General Education Diploma (GED).
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The upward review of the minimum wage and continued push for Omanisation, currently at 15.5% in the private sector, signal a strategic shift to enhance local workforce participation while balancing economic stability. For businesses, this presents both an opportunity to invest in skilled Omani talent and a risk of increased labor costs, necessitating productivity and digital transformation investments. Smart investors and entrepreneurs should focus on leveraging national labour policies and emerging digital initiatives to create competitive advantages amid evolving workforce dynamics.
