Category: Law Updates

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:

His Majesty issued today Royal Decree 60/2025 amending Royal Decree 52/2023 to delay the implementation of certain branches of the Social Protection Law.

Under the original royal decree the branch of insurance against work injuries and occupational diseases for non-Omani workers was supposed to enter into force in July 2026, today’s royal decree pushed this date to July 2028. Similarly, the branch of insurance of sick leave and extraordinary sick leave was supposed to enter into force in July 2025, it has now been pushed to July 2026. Finally, the savings system was supposed to enter into force in July 2026, and now it will enter into force in July 2027.

You can read Royal Decree 60/2025 in English in full on the link below:

The Ministry of Commerce, Industry, and Investment Promotion (MOCIIP) published in this week’s issue of the Official Gazette Decision 245/2025 Amending Some Provisions of the Commercial Companies Regulation.

The amendment created a new requirement for authorised signatories to fall under specific categories of individuals who can take this role, such as partners in the company, members of the board of directors, and administrative and finance staff. Notably it appears that it is now not possible to appoint an employee of another company who does not fall under any of the categories specified as authorised signatory.

This amendment of the Commercial Companies Regulation enters into force tomorrow. You can read the full text of this amendment in English on the link below:

The Ministry of Commerce, Industry, and Investment Promotion (MOCIIP), in cooperation with the Consumer Protection Authority (CPA), has issued a new circular that requires all shopping malls and retail outlets to provide single-use bags free of charge to their customers. The circular also makes it an obligation for those establishments to provide consumers with additional bag options for a fee.

The circular does not have a specific entry date, so it is assumed that it is immediately enforceable.

It is worth noting that in the year 2020, Oman issued a decision banning single-use plastic bags, but in 2024 another decision was issued limiting the ban only to single-use plastic bags that have a thickness of less than 50 micrometers. This new circular by MOCIIP appears to further erode the ban of single-use plastic bags by making it mandatory for retail outlets to provide consumers with single-use bags, plastic or otherwise, free of charge. This goes against the international trend towards sustainability and encouraging people to reuse and recycle their bags as part of global environmental efforts.

You can read MOCIIP new decision on single-use bags on the link below:

Last week, Oman took a groundbreaking step towards economic sustainability by being the first GCC country to introduce the long awaited personal income tax through Royal Decree 56 Issuing the Personal Income Tax Law. The impact that this law is expected to have on the economy and the relationship between the government and residents in Oman cannot be understated. However, it is also important to note that even though this law relates only to the taxation of individuals, it imposes a number of significant obligations on employers. This blog post will outline these key obligations under the Personal Income Tax Law that all companies in Oman need to be aware of to be in compliance with the law in their capacity as employers.

The Ministry of Finance (MOF) published in this week’s issue of the Official Gazette the Executive Regulation of the Public Debt Law, providing practical implementation details for the Public Debt Law that was issued back in 2023.

The Secretariat General of the Tender Board issued a new circular last month banning government entities from contracting with private sector companies that do not comply with Omanisation percentages.

You can read the circular in full in English below:

The Central Bank of Oman (CBO) issued last week the Regulatory Framework for Digital Banks. This regulatory framework sets the requirement for establishing a digital bank, creates two categories for digital banks, sets minimum capital requirements, restrictions on the activities for different digital bank categories, and progressive Omanisation percentages that increase over a period of five years, licensing conditions, and the requirements to present a business plan to obtain the license, among other things.

The Ministry of Social Development published in this weeks issue of the Official Gazette a new Governance Regulation of Social Welfare Institutions that aim to provide welfare services to the elderly.

The regulation covers matters such as the objectives of welfare homes, the conditions for admitting an elderly person to an elderly home, the conditions for volunteering at a welfare home, and the actions to be taken when an elderly person dies in a welfare home.

It is worth noting that the MOSD issued late last year a Governance Regulation of Temporary Welfare Institutions that aims to provide services for women, children and victims of human trafficking.

The new Governance Regulation of Social Welfare Institutions enters into force tomorrow. You can read in full in English on the link below:

Last month, the Ministry of Transport, Communications, and Information Technology (MTCIT) issued Oman’s first policy for governing the use of artificial intelligence (AI) systems. This policy was issued in the form of a circular, and therefore it is not a strictly binding legal document published in the Official Gazette.