Ministerial decision issued on periodic bonuses for Omani Workers
Article Two:
Without prejudice to any superior benefits granted to the employee, an Omani worker is entitled to a periodic bonus on 1 January each year, provided that they have been employed at the establishment for at least six months. This bonus shall be based on the outcome of their performance evaluation, and shall be paid at a minimum rate as follows:
5 per cent of the basic salary if the worker receives an 'Excellent' evaluation.
4 per cent of the basic salary if the worker receives a 'Very Good' evaluation.
3 per cent of the basic salary if the worker receives a 'Good' evaluation.
2 per cent of the basic salary if the worker receives an 'Acceptable' evaluation.
The worker shall not be entitled to a periodic bonus if they receive a 'Poor' performance evaluation.
In all cases, the employee has the right to appeal the result of their performance evaluation to the relevant administrative division within the Ministry.
Article Three:
In applying the provisions of Article 50 of the Labour Law, the establishment in which the employee has spent the longest period of one year shall be responsible for preparing the performance report. The establishment to which the employee is transferred shall be obligated to pay the periodic bonus due.
Article Four:
The employer may reduce the periodic bonus if the establishment can demonstrate an economic justification for doing so, provided that approval is granted by the committee referred to in Article 45 of the Labour Law.
Article Five:
The employer may suspend the periodic bonus in the following cases:
1. If the employee is accused of committing a misdemeanour or felony in the workplace and is referred for investigation by the competent authorities. Should a final judgment acquit the employee, the establishment shall be obligated to pay the suspended periodic bonuses in accordance with the provisions of this decision.
2. If the employee takes unpaid leave under the provisions of Articles 80 and 83 of the Labour Law, or is absent from work for more than six months during the year in which the periodic bonus is calculated.
Article Six:
The periodic bonus shall continue to be paid to the employee once the reason for its reduction or suspension ceases, in accordance with the provisions of this decision.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Muscat Daily
8 hours ago
- Muscat Daily
Performance-based increment for Omani workers in private sector
Muscat – Omani workers in the private sector will now be entitled to a performance-based periodic increment every January under new regulations issued by Ministry of Labour. Ministerial Decision No 317/ 2025, published in the Official Gazette (Issue 1606), sets out the minimum increment and conditions for disbursement. The regulation replaces Ministerial Decision No 541/2013 and comes into effect the day after publication. Under the new rules, an Omani worker must have completed at least six months of service at an establishment to qualify. The appraisal will be determined based on performance, with minimum increment of 5% of the basic for an 'Excellent' appraisal, 4% for 'Very Good', 3% for 'Good', 2% for 'Acceptable' and none for a 'Weak' rating. Workers have the right to appeal their appraisal results to the competent department at Ministry of Labour. In cases where a worker changes jobs within the year, the establishment where they spent the longer duration will be responsible for issuing the performance appraisal, while the new employer will be required to pay the allowance. The decision also allows employers to reduce the allowance due to economic reasons, subject to approval by the committee referenced in Article 45 of the Labour Law. Employers may suspend the increment if a worker is under investigation for a workplace-related offence, or if the employee takes unpaid leave or is absent for more than six months in the year. However, increment must be paid retroactively in case of an acquittal. An administrative fine of RO50 will be imposed on any employer who violates the provisions of the decision, and the fine multiplied by the number of workers against whom the violation occurred. The decision is part of continued efforts to enhance labour market regulation and ensure fair compensation linked to performance and service duration.
Times of Oman
12 hours ago
- Times of Oman
First local company specialising in health insurance claims management established in Oman
Muscat: The first company specializing in health insurance claims management 'Green Line Health Insurance Claims Management Company' was established on Sunday. It is the first Omani company licensed for this activity, supported by a national vision consistent with the directives of Oman Vision 2040, aiming to provide services with global standards using the latest technologies, and to enhance and empower national competencies to undertake a key role in this new field. The move comes amid accelerating growth in the health insurance sector and the increasing need for smart solutions to enhance the efficiency of medical services. Faisal Hamad Al Rashdi, Co-founder and CEO of Green Line Insurance Services, stated that, due to his long experience in the health insurance sector, he observed the operational challenges facing this sector, whether at the level of insurance companies, healthcare providers, or even policyholders. Given a clear gap in claims management, Al Rashdi decided to establish this company, especially with the Financial Services Authority (FSA) announcing the opening for applications to practice health insurance claims management as an independent and regulated activity. This presented a national opportunity to establish a specialized local company that contributes to building this vital sector. He explained that the market lacked a specialised company in health insurance claims management, with a greater reliance on foreign companies managing operations from outside Oman. This affected the speed and quality of services, in addition to the possibility of health data – which is highly sensitive – being leaked through external systems. The Financial Services Authority had taken the initiative to issue clear legislation to ensure the protection of this data within Oman. He noted that the company represents a reliable source managed by national competencies, meeting market needs through its proximity to clients, which directly reflects on work quality and the speed of transaction completion. Regarding the market's reception of this project, Faisal Al Rashdi affirmed that it is natural for any sector to face some challenges when entering a phase of change, especially when there are long-standing working relationships between the market and external parties that have managed this activity for decades. However, he stressed the necessity of redoubling efforts to build trust and confirm readiness to provide high-standard services that meet the needs and aspirations of target groups, in addition to full compliance with national regulations. As for the project's nature, he mentioned that the company offers a comprehensive package of services in health insurance claims management that meets international standards. These include accurate and prompt medical claims management, medical and administrative verification using smart systems to detect duplication and errors, as a step towards time management. It also covers medical network management, from contracting with hospitals and clinics to ensuring the quality of service provided to policyholders, in addition to data analysis and smart reporting that helps insurance companies make decisions based on accurate data. He emphasised that the company relies heavily on digital solutions and modern technologies, including artificial intelligence, for faster data analysis and the automation of routine operations using robotic process automation (RPA), which reduces manual errors and saves time and effort. Furthermore, it is fully integrated with the national platform developed by the Financial Services Authority ("Dhamani" platform), which has been approved for fully electronic operations. He clarified that the company handles data confidentially, storing client data on company-owned servers only, without relying on external servers, to ensure complete control over information security. It applies best cybersecurity standards, such as advanced data encryption during transmission and storage, firewalls, and intrusion detection and prevention systems. Additionally, access permissions are granted on a limited and well-considered basis according to the employees' job roles, along with adherence to all local and international laws and regulations related to data protection and periodic reviews to ensure continuous compliance.
Times of Oman
12 hours ago
- Times of Oman
Dhofar Khareef season sparks commercial boom across markets and tourist hubs
Muscat: Dhofar Governorate is witnessing a surge in commercial activity across markets and shopping centres during the 2025 Khareef Season, fuelled by a significant influx of visitors drawn to the region's exceptional climate and scenic beauty. This momentum is bolstering the tourism and retail sectors while providing a tangible boost to the national economy. From traditional souqs to modern malls, commercial activities are thriving. Shops offering handicrafts and local delicacies are seeing strong demand, alongside increased footfall at restaurants, cafés, hotels, and various entertainment and tourism facilities. Several small and medium-sized enterprise (SME) owners told the Oman News Agency that the Khareef Season offers a crucial window for growing sales and expanding operations. They also highlighted the importance of promoting and supporting locally made products to meet visitors' expectations. Nour bint Ali Al Yafei, owner of Bint Al Janoub, shared that her home-based business in incense and perfumery – with over 30 years of experience – has evolved to include women's clothing and high-quality Dhofari products made from natural ingredients. 'We opened our first branch in Salalah in 2020, and a second in the Al Hafa area in 2024 to meet growing demand, especially during the Khareef tourist season, when gifts are in high demand,' she said. Rami bin Muslim Al Kathiri, founder of Dou Chocolate and Flowers, said that his business experiences high footfall during the season due to its diverse offerings – including premium chocolates, fresh flowers, and seasonal gifts. He described the venture as a successful SME model that adapts to tourist seasons and strengthens local commerce. Aqeel bin Alawi Al Marzaa, founder of Makkah Perfumes, explained that his enterprise started with a vision of quality and heritage, drawing on Omani frankincense. Today, it operates over 15 branches across the Sultanate. 'We own a specialised factory for extracting and exporting frankincense oil. Alongside integrated perfume production lines catering to Gulf preferences, we have developed over 150 perfume products,' he noted. He added that tourists show strong interest in locally crafted perfumes for their durability, quality, and authentic aromas. On the culinary front, Tariq bin Salem Al Hosni, owner of Al Hosni Omani Sweets, said his decades-old brand has expanded to over 10 branches within Oman and several more across the GCC. He observed that tourists are eager to try and learn how to prepare traditional Omani sweets. 'Our sweets reflect true Omani hospitality and are increasingly sought-after during tourist seasons,' he said. The business was recognised by the Guinness World Records for producing the largest cake shaped like the Sultanate's map on Oman's 45th National Day. Many tourists and visitors now consider the Dhofar Khareef season a favourite destination and a key commercial hub. Hilal bin Khalaf Al Sharaqi underlined the role of emerging businesses in reviving the local market by offering products and services that align with the governorate's identity and enhance the tourist experience. He called for greater institutional support to ensure these ventures thrive. Abdullah bin Salem Al Ghaithi praised Hafa Beach Market for its seamless blend of tradition and modernity. 'Perfumes, incense, sweets, and handicrafts fill the area with a wonderful ambience. Light rain makes the shopping experience truly unique,' he said. Majid bin Abdullah Al Shariqi noted the strong demand during Khareef for seasonal clothing, tropical fruits like coconut, papaya, pomegranate, banana, and mango, as well as camping and travel gear. He described the season as a transformative period for the local economy. Abdullah bin Amer Al Eisaei, a tourist from the UAE, highlighted the quality of local products and the well-organised markets in Salalah – especially Al Hafa Beach Market – as key attractions. He praised the transparency in pricing and the presence of regulatory oversight, adding that Dhofar's moderate climate remains its most outstanding feature during this time of year.
