20 July 2017
Muscat: Every worker in the private sector should be paid on time or their employer could be fined, under a new Ministry of Manpower pilot scheme.
A trial scheme will be launched on National Day, which will track employee wages through their bank accounts, in partnership with the Central Bank of Oman (CBO).
“We are in the trial phase for the Wage Protection Programme between the ministry and central bank which is a standard format for all of the private sector companies regarding how to prepare a format for wages,” Ruqaiya Al Azri, the Head of the Wage Protection Department, said.
Eventually, every bank in Oman will be part of the scheme, she added.
“The programme will officially start on the November 18 and we will have all the information and directions on the ministry website in English and Arabic. When companies go to pay wages, we will give them the new format. Everything will happen after the inauguration,” Al Azri added.
The Wage Protection Programme, aimed at all of the private sector, focuses on creating an accurate database concerning working wages in the sector.
“The Wage Protection Programme is designed to monitor the processes for the payment of wages by following the bank transactions of the employees,” the ministry said in a statement.
“Before, the employee had to inform the ministry of companies not paying. The programme will no longer require employees to report not being paid on time or paid in general due to the branching between the CBO. It will show what companies haven’t paid or are late based on dates and the details will be very clear in their files,” Al Azri said.
“It could be that a person is absent without approval and the company discounted him/her. We compare the salary that the employee receives with our data based on the contract. If we have a difference, there should be a column where notes are written where the company states why the salary has been deducted so that it’s justified.
“The penalties are based on Article 116 for those who don’t comply with the rules regarding wages, which is OMR100 per employee. These rules apply to methods of payment and non-payment. All the banks in the Sultanate will be united under this program,” Al Azri added.
Rajkumar Iqbal Ahmed, CEO of Al Khalij Equipment, said: “This will be a great step forward to standardise the whole process of payments to employees.”
“Currently every company has their own rules of paying employees but monitoring them will make companies accountable for their actions of non-payment. “This will also encourage efficiency and timely completion of work.”
Financial expert Ramanuj Venkatesh, Assistant Manager (Accounts) at Larsen and Toubro, has worked in the Middle East for more than ten years.
He said: “Employee confidence will increase if such measures are implemented sooner to address the issue. Stricter regulations in line with Article 53 of the Labour Law need to be put in place to ensure employees are paid the right amount at the right time.”
Some citizens and residents in Oman are struggling without regular pay in the economic downturn as companies await payment for big contracts.
“I haven’t been paid for two months now and my company says they are yet to receive payments in the market. I understand, but how can I feed my family without money?
“My cheques for monthly rent are bouncing, making it worse for me. I am glad this law will monitor if we are paid or not,” Ahmed Hassan, an Egyptian expat, said.
“The law will take care of the residents. It’s a great law to make sure employers are held accountable for everything. We can’t have residents working for months and being paid late or not paid in some cases.
They are now going to make sure dues are paid on time without fail else they will face the penalties in the law,” Amit Patel, an Indian expat worker said.
Mohammed Farji, a trade unionist in Oman, said: “To be honest, this may not have any effect. There are current violations that have not been solved.
“There are companies where employees would go months without pay, and the ministry would only respond if they receive a complaint, which is the mechanism of the judicial system in this regard.
“One must be optimistic, but within reason.”
Muscat: Every worker in the private sector should be paid on time or their employer could be fined, under a new Ministry of Manpower pilot scheme.
A trial scheme will be launched on National Day, which will track employee wages through their bank accounts, in partnership with the Central Bank of Oman (CBO).
“We are in the trial phase for the Wage Protection Programme between the ministry and central bank which is a standard format for all of the private sector companies regarding how to prepare a format for wages,” Ruqaiya Al Azri, the Head of the Wage Protection Department, said.
Eventually, every bank in Oman will be part of the scheme, she added.
“The programme will officially start on the November 18 and we will have all the information and directions on the ministry website in English and Arabic. When companies go to pay wages, we will give them the new format. Everything will happen after the inauguration,” Al Azri added.
The Wage Protection Programme, aimed at all of the private sector, focuses on creating an accurate database concerning working wages in the sector.
“The Wage Protection Programme is designed to monitor the processes for the payment of wages by following the bank transactions of the employees,” the ministry said in a statement.
“Before, the employee had to inform the ministry of companies not paying. The programme will no longer require employees to report not being paid on time or paid in general due to the branching between the CBO. It will show what companies haven’t paid or are late based on dates and the details will be very clear in their files,” Al Azri said.
“It could be that a person is absent without approval and the company discounted him/her. We compare the salary that the employee receives with our data based on the contract. If we have a difference, there should be a column where notes are written where the company states why the salary has been deducted so that it’s justified.
“The penalties are based on Article 116 for those who don’t comply with the rules regarding wages, which is OMR100 per employee. These rules apply to methods of payment and non-payment. All the banks in the Sultanate will be united under this program,” Al Azri added.
Rajkumar Iqbal Ahmed, CEO of Al Khalij Equipment, said: “This will be a great step forward to standardise the whole process of payments to employees.”
“Currently every company has their own rules of paying employees but monitoring them will make companies accountable for their actions of non-payment. “This will also encourage efficiency and timely completion of work.”
Financial expert Ramanuj Venkatesh, Assistant Manager (Accounts) at Larsen and Toubro, has worked in the Middle East for more than ten years.
He said: “Employee confidence will increase if such measures are implemented sooner to address the issue. Stricter regulations in line with Article 53 of the Labour Law need to be put in place to ensure employees are paid the right amount at the right time.”
Some citizens and residents in Oman are struggling without regular pay in the economic downturn as companies await payment for big contracts.
“I haven’t been paid for two months now and my company says they are yet to receive payments in the market. I understand, but how can I feed my family without money?
“My cheques for monthly rent are bouncing, making it worse for me. I am glad this law will monitor if we are paid or not,” Ahmed Hassan, an Egyptian expat, said.
“The law will take care of the residents. It’s a great law to make sure employers are held accountable for everything. We can’t have residents working for months and being paid late or not paid in some cases.
They are now going to make sure dues are paid on time without fail else they will face the penalties in the law,” Amit Patel, an Indian expat worker said.
Mohammed Farji, a trade unionist in Oman, said: “To be honest, this may not have any effect. There are current violations that have not been solved.
“There are companies where employees would go months without pay, and the ministry would only respond if they receive a complaint, which is the mechanism of the judicial system in this regard.
“One must be optimistic, but within reason.”
© Times of Oman 2017
