Oman: Hard-hit private firms allowed to cut staff salaries

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Hard-hit private sector firms, under the current circumstances, can cut down the salaries of their employees for a period of three months in return for reducing their working hours (after the expiration of an employee’s stock of paid holidays).

This procedure shall take effect, if necessary, till 31 March 2021.

Expatriate workers leaving Oman for good will continue to have their labour-related fines waived, provided they leave the country permanently, the Ministry of Labour has announced.

The decision is one of many made by the ministry to lessen the economic impact of COVID-19 on companies in the Sultanate. Companies that have been fined for the first time, between March 15, 2020 and March 31, 2021, for errors made over renewal of documents and service fees are also exempt from paying these penalties.

It is also now possible to renew expired documentation of establishments which have Omani employees. The incentive also applies to owners of small and medium enterprises registered at the Public Authority for Social Insurance.


However, Omani nationals working in the private sector cannot be terminated until 31 March. Renewal fees for expatriate labour cards have also been cut from OMR301 to OMR201 until the aforementioned date.

Private sector firms that have been badly affected by the coronavirus pandemic can terminate the services of their expatriate workers, provided all previous dues have been paid, and under the condition that they leave the country.

These steps were taken following discussions by the Supreme Committee to deal with COVID-19 on how to help businesses in the country that have been impacted by the coronavirus pandemic.


Times of Oman

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