Oman introduces mandatory e-system for employee salaries payment

Photo by Hongbin on Unsplash
By: Jennifer Blair

Employers in Oman are now required to pay the salary of at least 75% of their workforce through a government-backed Wage Protection System (WPS), effective September 2025, as reported by Times of India. 

 

The WPS requires private sector employers to transfer salaries electronically through banks and financial institutions approved and regulated by the Central Bank of Oman.

 

All salary payments are digitally tracked with the main objectives of guaranteeing timely wage payments to workers, preventing salary fraud or withholding, and maintaining an auditable digital record in line with Oman’s updated labour laws (Royal Decree No. 53/2023). 

 

The mandate aims to strengthen labour market oversight as well as protect workers’ rights, support job security, and ensure salary transparency for over 864,600 Omani workers across all sectors, according to the National Centre for Statistics and Information. 

 

Background and Implementation Timeline

 

The WPS is already a common practice in several Gulf Cooperation Council (GCC) countries and is an important part of protecting workers’ rights.

 

From September 2025 wages (paid in October), employers must pay at least 75% of their staff through the WPS. This threshold will rise to a minimum of 90% starting with November 2025 wages (paid in December).

 

Exemptions from Wage Protection System mandate

 

To maintain fairness and avoid penalizing employers for factors beyond their control, certain exemptions from using the WPS apply, including cases such as:

 

  • Ongoing labor disputes or strikes that last more than 30 days.
  • Work stoppages caused by circumstances beyond the employer’s control for more than 30 days.
  • Cases where a worker has been officially reported as absconding for over 30 days.
  • Employees who have been newly hired and have worked for less than 30 days.
  • Employees who are on unpaid leave.

 

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