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Labour Ministry issues new regulation on minimum periodic allowance for Omanis in private sector

The Ministry of Labor has issued Ministerial Resolution No. 317/2025, establishing a framework for the minimum periodic allowance granted to Omani employees in the private sector and regulating the conditions for its disbursement.

TAS News Service

info@thearabianstories.com

Sunday, July 27, 2025

MUSCAT – The resolution, based on the Labour Law issued under Royal Decree No. 53/2023, and the Ministerial Resolution No. 541/2013, aims to enhance transparency and fairness in annual performance-based allowances, while safeguarding employee rights.
According to Article 2 of the resolution, Omani workers will be entitled to a periodic bonus every January 1, provided they have completed at least six months of service at their establishment and have received a qualifying performance evaluation. The minimum bonus levels are as follows:

  • (5%) five percent of the basic salary if the worker receives an excellent evaluation.
  • (4%) four percent of the basic salary if the worker receives a very good evaluation.
  • (3%) three percent of the basic salary if the worker receives a good evaluation.
  • (2%) two percent of the basic wage if the worker receives an acceptable evaluation.
    The worker is not entitled to a periodic bonus if he receives a ‘weak’ performance report.
    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.
    In line with Article 50 of the Labour Law, if an employee has worked at multiple establishments within a year, the establishment where the worker spent the longest duration will be responsible for preparing the performance report, and the establishment to which he is transferred is obligated to pay the periodic bonus due to him.
    Article 4 stipulates that the employer may reduce the periodic bonus if the establishment proves that there is an economic reason, provided that the committee stipulated in Article 45 of the Labour Law approves.
    The resolution also includes provisions allowing employers to reduce or suspend bonuses under specific circumstances:
  1. If the worker is accused of committing a misdemeanour or felony within the workplace and is referred for investigation by the competent authorities. If acquitted, the employer must compensate for any suspended bonuses.
  2. If the worker spends unpaid leave in accordance with the provisions of Articles (80, 83) of the Labor Law or is absent from work for a period exceeding (6) six months in the year in which the periodic bonus is calculated.
    The periodic bonus shall continue to be paid to the worker after the reason for the reduction or suspension has been removed, in accordance with the provisions of this decision.
    To enforce compliance, Article 7 of the resolution imposes an administrative fine of RO 50 on any employer who violates its provisions, with the penalty multiplied by the number of affected workers.
    This decision cancels Ministerial Resolution No. 541/2013 and any conflicting regulations. It will be published in the Official Gazette and will come into effect the day

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