MUSCAT: The Ministry of Labour has made significant progress in implementing the Wage Protection System (WPS), a joint electronic system with the Central Bank of Oman that aims to safeguard workers' wages in the private sector.
As of November 10, 2023, 26.17 per cent of commercial establishments with at least one worker had registered in the system. Large enterprises have shown the highest compliance rate, with 99.3 per cent registered, followed by medium enterprises at 91.75 per cent. Small and micro enterprises have lower registration rates, with 25.89 per cent and 21.12 cent respectively.
According to Shaikh Mohammed bin Ghalib al Hinai, Advisor for Human Resources Planning at the Ministry of Labour and Chairman of the WPS Main Committee, large and medium enterprises were given a six month extension to bring their companies into alignment with the WPS by 50 per cent as of November 9, 2023, and 100 per cent by January 9, 2024. As for small and small enterprises, the deadline is January 9, 2024 for 50 per cent, rising to full 100 per cent compliance by March 9, 2024. The latter were given an extension of eight months to achieve compliance.
The WPS ensures that employers transfer workers' wages directly to their bank accounts, protecting them from delayed or non-payment. It also provides the Ministry of Labour with a comprehensive database on wages in the private sector, which can be used for strategic planning and policy development.
The Ministry has been actively promoting the WPS through a wide media campaign and awareness-raising workshops. It has also published a file of frequently asked questions in Arabic, English, Urdu, and Bengali to ensure that workers have access to information about the system. The Ministry is also working with the General Union of Workers of the Sultanate of Oman to raise awareness among private sector employees.
Employers who do not register in the WPS may face administrative penalties, including warnings, suspension of work permit services, and fines. If the violation is referred to the judicial authorities, even higher fines may apply.
The WPS has been integrated with the Ministry of Labour's other systems, including licensing, work leave registration, the wage subsidy initiative, and training contracts. This integration ensures that private sector institutions must be registered in the WPS in order to access these services.
The WPS is programmed to automatically monitor the annual increase in wages through updated electronic contracts. It also links with the Public Authority for Social Insurance to ensure accuracy.
The Ministry of Labour emphasizes that the wage data of workers in the private sector is confidential and cannot be accessed by its employees except in cases of labour disputes.
Employers are exempted from transferring wages to workers' bank accounts in certain cases, such as when there is a legal dispute between the worker and the employer, when the worker leaves work without legal justification, when new employees have not completed 30 days of employment, or when workers are on unpaid leave.
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