Delay move on fees hike for expats: OCCI

The recent decision to raise fees for work permits of expatriates by the Ministry of Labour will burden the private sector companies and also negatively affect the local economy, the OCCI chairman said. He sought to postpone the decision for some time.

Ridha bin Juma al Saleh, Chairman of the Board of Directors, OCCI, said that the decision will incur big losses to business owners, which will ultimately raise the cost of goods and services.

The ministry announced that there will be an increase in fees to recruit and new licenses to bring in expatriate manpower in some professions. According to the announcement, to recruit an expatriate for salaries above RO 4,000 will now cost RO 2001 while to recruit someone for technical and specialised posts will now cost RO 600 and above.

He also said that the current situation will lead companies in the local markets to shift elsewhere.

He said that changes in policies and procedures regulating workforce recruitment licenses need further study so that the OCCI can organise the labour market in line with future goals that will ensure the growth of the private sector and raise its productivity.

“We must be aware of the uneasy economic conditions following the lifting of subsidies on basic services, application of Value-Added Tax, effects of the decline in oil prices, repercussions of Covid-19 pandemic that have led to huge losses in various economic sectors, which is continuing to date,” he said. It is necessary to encourage foreign and domestic investment, review laws and legislation regulating investment, and offer incentives and facilities to investors, which in turn will enhance job creation and job opportunities during the next phase, and contribute to advancing the development of the national economy.

“With more and more youngsters graduating annually, the economy must be in a position to offer appropriate jobs for these job-seekers.” The participation of the private sector represented by the OCCI while preparing the labour law is important to achieve a balance between the rules that regulate the labour market and ensure the rights and duties of the various production parties. He stressed the importance of education and vocational training and refining the skills of young people through on-the-job training, and the importance of dialogue represented by the members of the Ministry of Labour, OCCI and the General Federation of Oman Workers (GFOW), especially to review the possible impact of various decisions on small and medium enterprises.

The current economic conditions require the authorities concerned to take into account these circumstances and help reduce the weight of the burden on the shoulders of the private sector.