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HomeFinancialOman Reshapes Private Sector Pay with Performance-Based Bonus Mandate

Oman Reshapes Private Sector Pay with Performance-Based Bonus Mandate

Oman introduced new rules to regulate the periodic bonus for Omani workers in the private sector. The Ministry of Labour aims to ensure fairness in performance-based rewards and strengthen employee rights.

Workers who complete six months of service qualify for a periodic bonus in Oman. Their performance evaluation determines the bonus percentage. These rules aim to encourage productivity and fairness across all sectors.

Employees with an “excellent” rating receive a 5% bonus. Those rated “very good” earn 4%, while a “good” score grants 3%. Workers evaluated as “acceptable” qualify for a 2% bonus. However, employees with a “weak” rating do not receive a bonus.

The new regulation allows employees to challenge unfair performance reviews. Workers can file complaints through the Labour Ministry’s administrative department. This appeals process helps promote transparency and accountability in evaluations.

If a worker switches jobs during the year, the longest-serving employer must handle the performance review. The current employer pays the periodic bonus in Oman. This prevents bonus loss during job transfers.

Employers can request a bonus reduction during economic hardship. They must present financial evidence and receive approval from the Labour Law committee. This rule balances business needs with worker protection.

Certain conditions allow the temporary suspension of the bonus. For example, employers can pause the bonus if a worker faces a criminal investigation related to the workplace. If cleared, the employer must pay the owed bonus immediately.

Employees who take unpaid leave or miss work for over six months also face bonus adjustments. Once the employee returns, the employer must restart the periodic bonus in Oman. These steps ensure fair treatment while keeping employers flexible.

The Labour Ministry enforces these rules through penalties. Any employer who breaks the law pays a fine of 50 riyals per affected employee. This strict measure ensures full compliance and respects workers’ rights.

In conclusion, Oman canceled earlier bonus regulations that conflicted with the new decision. Authorities believe the updated system improves wage fairness and encourages better employee performance.