MUSCAT, JULY 19 - As part of its efforts to monitor and scan the payment of wages in Oman, the Ministry of Manpower will launch a mandatory national Wage Protection Programme in November.
According to the ministry, the programme being initiated in cooperation with the Central Bank of Oman (CBO), will be compulsory for all private sector companies in the Sultanate. “This system is aimed at creating a database with regard to the payment of wages to all employees working in the private sector,” the ministry said in a statement.
The Wage Protection Programme mandates that wage payment in the private sector be made only through authorised banks and financial institutions.
“The new programme will streamline the whole system. This will ensure that the ministry gets automatic updates of salary transfers from employers to banks”, the ministry said.
The labour law in Oman stipulates that salaries of employees be deposited in their bank accounts.
“The employer will not be cleared of the employee’s salary unless the salary is deposited in the employee’s account at one of the locally approved banks.
A decision by the Minister may determine the exceptions where the employee’s salary may not be deposited in his account”, article 53 of the labour law demands.
Manpower experts expect that the new exercise will also help the ministry get a clear picture on Omanisation apart from the exact amount of wage being paid.
“The new system will ensure that there is a record of wages and that companies pay salaries as per the contractual amount on time”, said Mohamed Iqbal.
The new system will also help safeguard the interest of both the employer and employees in the event of any wage dispute”, he said.
SAMUEL KUTTY
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