Oman Plans to Raise the Minimum National Wage to 400 Riyals

Gulf Insider

27-03-2025

Oman is considering raising the minimum national wage to OMR400 (about Dh3,815), instead of the current OMR325, according to Dr. Mahad bin Saeed Ba'awin, the Minister of Labour.
Ba'awan told a local radio station that the OMR400 figure is preferred, the final decision will be subject to further evaluation and negotiation.'As a government, we tend to favour setting the minimum wage at 400 Omani rials. However, this remains a proposal subject to further evaluation,' Dr. Ba'owain said.
He explained that the proposal will be thoroughly assessed by the Financial and Economic Committee, the Council of Ministers, and all relevant stakeholders before any decision is made.The minister further said that the proposed range of OMR360 to OMR400 was determined through collaboration between the technical team of the National Employment Programme and the Directorate General of Planning and labour market policies.The announcement follows previous statements by the Minister at the 'Together we Progress' forum last month, where he indicated that the Labour Ministry was studying a move to raise the minimum wage to the same OMR360-400 range.
At that forum he stated, 'We are currently reviewing the minimum wage. We have sent an initial draft to the Secretariat General of the Council of Ministers. The hike in the minimum wage depends on the average of monthly wages and the annual inflation rate and it may range between OMR360 and OMR400.'At present, the minimum wage for Omani workers stands at RO325, irrespective of qualifications. The Minister assured that the proposed wage increase is driven by economic factors rather than a desire to reduce wages. 'Our goal is not to reduce wages. This is purely an economic matter based on supply and demand,' he pointed out.
Last week, the minister announced its operational plan for 2025, which aims to create 45,000 job opportunities. The plan includes 11,000 training and qualification opportunities for job seekers, approximately 10,000 job opportunities within the government sector, and 24,000 job opportunities in the private sector.
Dr. Mahad bin Saeed Ba'awin, the Minister of Labour, has affirmed that the Ministry's commitment to training programmes linked to employment, on-the-job training, and wage support.
These initiatives will be delivered through various channels, including support for small and medium enterprises holding Riyada cards, large companies, start-ups, freelance work, and temporary contracts within government companies for replacement purposes.
The Ministry is actively monitoring companies participating in the training-linked-employment programme, with a compliance rate exceeding 82 per cent.
Oman has begun setting a minimum wage as part of its social and economic reform policies over the past decades, in line with the drive to improve citizens' living standards and support social stability. In the 1990s, with the development of the Omani economy and increased reliance on the local workforce, the government began developing policies aimed at reducing the gap between wages and the cost of living.
Following the Arab Spring protests in 2011 and growing social demands, the government issued a decision to raise the minimum wage to approximately 200 Omani riyals, representing a qualitative shift in improving workers' income.
With increasing economic pressures and rising living costs, the minimum wage was raised again in 2013 to 325 Omani riyals. Following this, the minimum wage continued to evolve at a slow pace due to the economic recession witnessed in the region and globally, with the government committed to updating wage policies in line with market changes and challenges.
Nabhan bin Ahmed al Battashi, Chairman of the General Federation of Oman Workers (GFOW), stressed that the raising the minimum wage requires a thorough examination of references and indicators to establish a reasonable figure capable of withstanding economic challenges in the future. 'Meetings are still ongoing within the Dialogue Committee, with plans for meetings to finalize a specific figure to present to the Council of Ministers,' he explained.
Dr Mohamad Al Mushaiki, academic and researcher specialising in public opinion and mass communication, said that it's time to raise the minimum wage for Omanis to OMR500, up from OMR325. 'A minimum salary for university graduates must also be set at OMR700. Above all, we hope to adopt the job seekers' benefit as soon as possible, so that Omani society, in all its segments, can enjoy the social protection umbrella without exception,' he said.
Also read: Oman GDP Up 1.7% to $99.5bn