It is well-known that a person always opts for an employer who offers him an attractive monthly salary and other benefits with which to build his future.
In the Sultanate of Oman, recruitment of Omanis occurs in both the public and private sectors, although employment levels have declined in recent years in government institutions. Salaries and privileges that an individual received in previous decades have also decreased compared to what he receives now, whether in governmental institutions or the private sector.
Although the decision taken by the Ministry of Labour in the last period to set the minimum wage in the private sector at RO 325 ($845), many citizens see it as a disincentive to join private institutions and companies. However, employment matters are presently dealt with on the basis of supply and demand, experience and efficiency in productivity, while the salary in these institutions is subject to change whenever the worker increases his productivity.
The recent data of the monthly bulletin of the National Center for Statistics and Information for the month of July 2022 indicates that the number of Omanis working in private sector institutions reached 282,363 workers in the first half of 2022. Of this total, 88,733 Omanis (representing 31.4 per cent of the total) received salaries ranging from RO 325 to less than RO 400 per month. Another 51,000 Omani workers (representing 18.4 per cent) received salaries ranging from RO 400 to less than RO 500. Around 35,000 others (12.4 per cent) received monthly wages ranging from RO 1,000 to less than RO 2,000. As many as 17,638 Omanis (6.25 per cent) were paid over RO 2,000 per month. As for the remaining 31.5 per cent of the Omani private sector workforce, they received salaries of between RO 500 and 900.
The decision of the Ministry of Labour to keep minimum salary of RO 325 in the private sector, while well-received by private employers, has disappointed citizens. The demand of many citizens is to raise the minimum salary to RO 550, while some experts believe that the Omani at the beginning of his work should search for a job that qualifies him to gain some experience in addition to his certificate, which may help them obtain a higher salary later. In fact, there are Omani institutions and companies that give new employees a salary at the beginning of their work that amounts to between RO 500 and 600 in appreciation of their academic qualifications. However, entry into these institutions has since become competitive. This will help to link the wage system to skills and not certificates. In light of this, the Ministry of Labour is re-examining the minimum wage decision once again through community dialogue committees formed by several institutions in light of rising inflation and economic changes taking place in the world.
The government is working to reduce the differences and privileges between workers in the two sectors so that everyone can enjoy similar remunerative packages.
Oman Observer is now on the WhatsApp channel. Click here
