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Oman News

Performance-based annual pay hikes introduced for Omanis employed in private sector

Omani workers in the private sector are set to receive performance-based periodic increments every January, following the issuance of new regulations by the Ministry of Labour.

TAS News Service

info@thearabianstories.com

Sunday, July 27, 2025

MUSCAT – Under Ministerial Decision No. 317/2025, published in the Official Gazette (Issue 1606), Omani employees who have completed at least six months of service with their employer will be eligible for a performance-based periodic bonus every January.
The increment awarded will be directly linked to their performance rating, with clear minimum percentages established:
• 5 percent of the basic wage for an ‘Excellent’ appraisal
• 4 percent for a ‘Very Good’ appraisal
• 3 percent for a ‘Good’ appraisal
• 2 percent for an ‘Acceptable’ appraisal
• No increment will be granted for a ‘Weak’ performance rating.
In all cases, the worker has the right to file a grievance against the results of his evaluation in the performance report with the relevant administrative division in the Ministry.
The decision replaces the previous Ministerial Decision No. 541/2013 and takes effect immediately following its publication. It also reinforces accountability, with the Ministry mandating a fine of RO 50 per violation, multiplied by the number of affected workers, for any employer found breaching the new regulations.

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