New rules issued for annual increment of 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 the Ministry of Labour.
Ministerial Decision No 317/2025, published in the Official Gazette (Issue 1606), sets out the minimum allowance rates 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 allowance will be determined based on performance appraisals, with minimum increments as follows:
5% of the basic wage for an 'Excellent' appraisal
4% for 'Very Good'
3% for 'Good'
2% for 'Acceptable'
No allowance for a 'Weak' rating
Workers have the right to appeal their appraisal results to the competent department at the Ministry of Labour.
An administrative fine of RO50 shall be imposed on any employer who violates the provisions of the decision, and the fine shall be multiplied by the number of workers in whose regard the violation occurred.
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