The Ministry of Labour published in this week’s issue of the Official Gazette Decision 317/2025 Determining the Minimum Periodic Allowance and Governing Its Disbursement to Omanis Working in the Private Sector. This new decision sets new mandatory rules for determining the minimum annual pay increment that employees subject to the Labour Law are entitled to.
Prior to this new decision, employees subject to the Labour Law were entitled to a 3% annual increment on their basic wage as long as the performance of the employee is not deemed “poor”.
Under the new decision, the percentage of the annual increment can range between 5% and 2% depending on the performance of the employee, and can be withheld completely if the performance of the employee is deemed “poor”.
This obligation is imposed in relation to Omani employees only. Employers found in violation of this decision are to be fined 50 Rial Omani for each employee against whom a violation is committed.
The decision also provides some grounds for suspending the implementation of the annual increment in general as we all rules for withholding the increment for individual employees.
This new decision enters into force tomorrow. You can read it in full in English on the link below: