
Oman: New Mandatory Annual Pay Rises for Private Sector Workers
The Arabian Stories, 27 July 2025: The Omani Ministry of Labour has implemented new regulations requiring private sector employers to provide annual salary increases based on employee performance ratings.
Under Sultani Ministerial Decision No. 317/2025, Omani workers who have completed six months of employment will be eligible for yearly increments each January, with increases determined by their performance appraisal scores.
The new payment structure establishes clear percentage increases tied to performance ratings: Excellent performance: 5% basic wage increase, Very Good performance: 4% increase, Good performance: 3% increase, Acceptable performance: 2% increase, Weak performance: No increase.
Employers failing to comply with the new regulations face penalties of RO 50 per violation, with fines multiplied by the number of affected employees.
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