2024-01-15 08:35:03
Muscat: The Ministry of Labor has asked Oman’s small and micro enterprises to register with the Wage Protection System (WPS) within the next 55 days.
As the deadline for registration of large and medium private sector enterprises in the Wage Protection System (WPS) has expired, the authorities have issued instructions to small and micro enterprises.
The authorities also clarified that it should be completed on time.
The Ministry of Labor had earlier released the provisions regarding the implementation of WPS in the private sector. A penalty of 50 Riyals will be imposed if the salary of employees is not remitted through the Wage Protection System (WPS).
First warning and initial work permit issuance service will be suspended. Penalty will be imposed later. If the mistake is repeated, the fine will be doubled. WPS is an electronic payroll transfer system that allows companies to pay wages to workers through banks or financial institutions authorized and authorized to provide the service. This system has been prepared by the Ministry of Labor in collaboration with the Central Bank. It helps companies ensure compliance with labor laws by transferring workers’ salaries to their bank accounts. WPS is considered as an important component of economic reforms aimed at establishing an accurate database of salaries of private sector employees. This system will promote sustainable employer-employee relations and increase productivity. It will also help in reducing wage related problems.
The employer is obliged to remit the wages of the workers to the banks within seven days of the due date. Employers must also update employment contracts with the Ministry when there is any change in workers’ wages. But in some cases the employer is exempted from transferring the wages of the worker through WPS. They are given below.
A labor dispute (judicial) between the worker and the employer that results in the termination of the worker’s employment, voluntary resignation by the worker without legal validity, new workers who have not completed 30 days from the date of commencement of work, and workers who are on leave without pay.
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