Periodic bonuses for Omani workers in the private sector have now been formalized under a new decision issued by the Ministry of Labour, aiming to regulate eligibility and enforce fair compensation standards. In a move designed to ensure performance-based rewards, the Ministry has announced that these bonuses will be granted annually on January 1, provided the employee has served for at least six months within the same establishment.
This resolution is part of the ongoing implementation of the Labour Law issued by Royal Decree No. 53/2023 and Ministerial Resolution No. 541/2013. It emphasizes performance evaluations as a foundation for determining bonus amounts, while outlining the minimum criteria and procedures for appeal. If an employee receives a “Poor” performance rating, they will not be entitled to a bonus. However, they can contest this rating with the relevant administrative division of the Ministry.
In cases where an employee is transferred during the year, the original employer, where the worker served the majority of the year, will handle the performance report, while the new employer will be responsible for paying the periodic bonuses for Omani workers.
Bonus Suspension Rules and Legal Exceptions Explained
The Ministry clarified the conditions under which periodic bonuses for Omani workers may be reduced or suspended. Employers can request a reduction due to economic hardship. Still, they must receive prior approval from the designated committee outlined in the Labour Law. Bonuses may also be suspended if an employee is under investigation for a workplace-related felony or misdemeanor. Should the employee be acquitted, the employer must retroactively pay the withheld bonus.
Suspension is also permitted if the employee takes unpaid leave under Articles 80 or 83 of the Labour Law, or is absent for over six months during the bonus evaluation year. Once these conditions are no longer applicable, the bonuses must be resumed in accordance with the Ministry’s regulations.
Employers violating these rules face penalties. A fine of 50 Omani riyals will be imposed per affected employee. This measure highlights the government’s continued commitment to improving working conditions, especially within the private sector. It also aims to promote greater transparency and fairness in employment practices.
Workforce Snapshot and Public Sector Context
While these new regulations primarily apply to the private sector, the broader context of Oman’s news reveals a balanced distribution of the workforce across industries. As of the end of June, the total number of Omani workers across all sectors reached 864,600. Of these, 406,000 are employed in the private sector, while 390,000 work in the public sector, and 67,200 are in family and civil sectors.
Additionally, expatriates make up a significant portion of the national workforce. By the end of June, Oman was home to 1.8 million expatriate workers, according to the National Centre for Statistics and Information (NCSI). Out of this total, 1.4 million were employed in the private sector. Another 41,000 expatriates were working in the public sector. Additionally, 349,000 were engaged in domestic roles across the country.
Oman has introduced structured periodic bonuses for Omani workers as part of its ongoing labour reform efforts. This policy aims to align employee incentives with performance, fostering a culture of accountability. It also reinforces worker protections under the country’s evolving employment laws. Overall, the initiative seeks to boost job satisfaction and strengthen the national workforce framework.
