Minimum Wage for Omanis to be RO 325/month from July 1st

Earlier today, some announcements were made by the Council of Ministers after their latest meeting. There are some quite significant changes announced, the news statement is here on ONA, but I'm duplicating it here for the record, I've bolded the really juicy parts:

Council of Ministers / Statement
Muscat, Feb 2 (ONA)--- During its meeting that was held today, the Council of Ministers studied a number important economic and social topics and came out with a number of decisions that serve the needs of this stage namely:- 
At the beginning, the Council of Ministers hailed the fruitful and constructive outcomes of the Royal meet-the-people-tour of His Majesty Sultan Qaboos Bin Said in Saih Al Shamikhat in the Wilayat of Bahla in the Governorate of A'Dakhiliyah and His Majesty's meeting with sheikhs and dignitaries of the Governorates of Al Wusta and A'Dakhiliyah at the Royal Camp, as well as the wise decisions taken to enhance the comprehensive development being witnessed by the Sultanate, which achieves aspirations of the Omani youths towards a better future. 
The Council of Ministers affirmed that the environment has become conducive and encouraging for the promising Omani youths to effectively take part in building their nation through entrepreneurship and utilization of the available investment opportunities. The Council of Ministers also stressed the importance of cooperation by all respective departments in the State to simplify and facilitate the transactions and measures related to implementing the approved decisions, so that they are properly implemented. 
As for the increase in the number of expatriate manpower, the Council took executive decisions that embody the Royal Directives in relation to striking a balance between expatriate manpower and the gross population in the Sultanate, so that it does not exceed (33%) in the specified term for this. In this regard, the Council of Ministers identified a number of mechanisms, the most important of which are as follows:

- Revising the Foreign Investment Law to bridge the gaps that are being exploited to attract expatriates.
- Considering the expatriate clearances granted to recruit foreign manpower at all specialties to evaluate and regularize the labour market.
- Revising the measures taken to grant commercial registrations.
- Approving new mechanisms to limit the concealed trade phenomenon. 
- Delegating the Supreme Council for Planning with the task of preparing a clear plan on the existing and future job-generating projects for the citizens and defining the time-frame for the same.
- Other procedures that may achieve the prospective objective.
Due to the importance of limiting the negative effects of this issue on the State's economic, social and security policies, the Council of Ministers decided to constitute a work team. This work team comprises the Supreme Council for Planning, the Ministry of Commerce and Industry, the Ministry of Manpower, the Ministry of Civil Service, the Secretariat General of the Council of Ministers, the Royal Oman Police (ROP), the Tender Board, Oman Chamber of Commerce and Industry (OCCI). The team will raise regular reports on the progress of implementation of the mechanisms that serve this trend. 
As for the existing cooperation between the government and the private sector, the Council of Ministers reviewed the outcomes of the joint action team - comprised of the two sides - regarding the proposed mechanisms for a number of aspects that have been highlighted during the meeting that was held at the end of December 2012. The meeting gathered a number of senior businessmen and a number of ministers and officials, as well as OCCI Chairman as these mechanisms have priority in implementation. The outcomes covered employment, social insurance, closing the gap in holidays, matching between outputs of education and training from one hand and the labour market's needs on the other hand, in addition to revising the Labour Law and improving the environment for business and attracting investments.  
Guided by His Majesty Sultan Qaboos Bin Said's Royal Speech at the Council of Oman on enhancing the contribution of the private sector in the march of comprehensive development and encouraging the Omani youths to work at its establishments and stability in its jobs, which specifically requires amending the salary system of this sector especially for junior and middle level's jobs, considering the fact that this is a national duty, the joint work team has discussed increasing the minimum salaries for Omanis working in the private sector. The joint team came with a proposal in this regard. Having discussed the issue, the Council of Ministers decided to approve the proposal that raises the minimum gross salary for an Omani working at the private sector to (RO 325).  This applies with effect from July 1st, 2013. The Ministry of Manpower will issue the decision implementing this.
--- Ends

So, in a nutshell:

1. It's going to be harder to be an expatriate working here in Oman, because the clearances will be harder to get.
2. Omani's are getting a bump in their minimum wage from 200 to 325 rials a month.

There are rumours around town that the Government are preparing to withdraw/reduce the subsidy on fuel and electricity... we shall see what happens. Presumably there will be an announcement for people working in the Government sector as well as their pay will probably be increased too.

Exciting times if your an Omani worker. Not so if you are a business owner or an expat.

le fin.  
Minimum Wage for Omanis to be RO 325/month from July 1st Minimum Wage for Omanis to be RO 325/month from July 1st Reviewed by Sythe on Saturday, February 02, 2013 Rating: 5


  1. And Oman takes another step to load the gun that they will use to shoot themselves in the foot.

  2. Honestly, as an Omani, this doesn't make sense. I can only see that is will cause price increases. How do you say someone working at McD's makes 1000 USd a month an disn't a manager at least? Now really? I should do a post on this because from an economic perspective it doesn't make sense. AT ALL. And I support Omanis who deserve a fair wage increase, truly, but not everyone does. Sooooo insanely backwards. It is like, here is some medecine. It doesn't cure you because that medecine will hurt for a little but give long term results. This one will make you numb for a while and the pain worse later. Ughhh. Gucci is right. We need a Ministry of Logic.

  3. OP- the problem is that the decision makers are all fat cats with little or no qualification past their family connections. You will find that they are being treated very well by the government and probably own companies with the minimum number of Omanis employed that they can possibly get away with.
    If Omanis want to overcome the problem they can, they need to stop employing expats. Zimbabwe is a great example of how well that works.

  4. Lets increase omanisation by ... increasing the cost of employing unqualified Omanis! Not many people could have made that sort of connection.

  5. Bahahahahaha!
    The decision to leave Oman seems to have been the correct one. Paying people (Omanis only!) extra for no reason at all proves the theory the country is standing on the edge of the toilet bowl, looking down and about to over balance.
    Next up: Compulsory management positions for Omanis with, or preferably without any qualifications at all.

  6. "Zimbabwe is a great example of how well that works."


  7. Only in Oman would you get 125 rials increase for doing extra fuck-all at work.
    This angers me to the point where I want to leave.
    The service from Omanis in general is abysmal. The attention levels are minimal. Skills are lacking to an inexcusable extent.
    I will await the annoying local yokel who jumps to everyone's defense with an argument built on a two legged table.
    It would appear that the government have given up. Prices will rise. Subsidies will be lifted from water and electricity. Robbing from people to pay Paul. Here's your 125 pay it back in bills.
    Idiocy at its finest!

  8. Anon: I agree with that. For example, it actually would make sense to Omanize the construction business that doesn't require Omani guys with any great school skills to pick up a trade. increase the min. wage for this, make it Omani only and it would work. BUUT, people who own these companies DON'T WANT THIS. At all. It is sad. What can average Omanis do about it?

  9. Inshaallah Zimbabwe never happens to Oman, that would break my heart.

    P.S. I do know many highly educated hard-working Omanis. I also know alot of hard-working Omanis who will never get promoted and so just give up in the wasta system.

    I ask my SIl what she does all day at her work. she is a hrd-worker. But is it is soooo hard because everyone gets paid the same as her and all they do is have tea and shop on the internet all day. So she feels like, why bother, this whole system is screwed anyways?


  10. why doesn't the government pay for the increased salary of 125 OMR. why do companies have to take their burden? they can give every citizen OMR 125 as allowances! these rules will just result in increased cost of living. Hard time on its way for the nation!!

  11. Last anon: The government already provides free healthcare, roads, and education as well as employeeing more of the population than is economically feasible. That's why you have all those useless internet-shopping tea drinkers I just mentioned. But with the rest of your comment, I totally agree.

    Without taxing Omanis and raising costs, more benefits are non-sensical. The solution is not a solution. There is either make certain jobs have a pay raise and that means all workers in thos ejobs which someone already said fat cats won't like {this would cause an increase in higher salary employed and skilled Omanis willing to learn these roles] or tax everyone and make costs greater for utlities and services [which no Omanis will like]. As far as the economy goes those are the only solutions unless more oil mysteriously appears which is geologically-speaking, unlikely.

  12. Not surprising. The place is full of lazy people that don't want to work but expect everything!

  13. Omanis need to stop rooting their cousins. Nothing good come from inbreeding!!!!

  14. The last 2 comments add nothing to this. Many countries without major social issues have plenty of 'cousin rooting'.

  15. In my opinion, the way omanization goes is more focus on quantity rather than quality. If this keeps happening, well you can guess what will happen....

  16. I kind of have to laugh at the cousin-rooting comments.

    Most of the hardest working Omanis I know all with PHDs and I mean, they went to Harvard not on Wasta or anything, are the results of a cousin-marriage so that is utter bull-crap. Unless you want to talk about funding special needs coverage for families that have babies with cerebral palsey because of inbreeding ect... then don't bring up "cousin marriages ect" in the topic of Omanization. It makes expats look ignorant to less intelligent Omanis, and it makes the commentor look like they have nothing useful to add to more intelligent Omanis. It isn't about this side versus that side, and the "you're useless" thrown back and forth at one another.

    Fact is, Oman needs expats in skilled positions and there are positions Omanis could probably be trained to fill but aren't being paid or trained for fullfilling. Until both side accept that, it is pointless to even try to talk on the subject.

  17. 'Omanis could probably be trained to fill but aren't being paid or trained for fullfilling'

    People are trying to train them but they* don't show up, want to be mudheer or just don't want to do the job. As for being paid- ask how many expats did summer jobs, part-time jobs, paper rounds etc just to get some money or training. Then ask how many omanis are doing that. It is in those jobs where we learn a lot of basic skills as well as the understanding of working to further yourself, get a better salary etc.
    The cousin-rooting is banal at best and not worth considering in any conversation.

  18. i think it should be a fair system for everyone, as its in US or Canada that there is a minimum per hour rate for everyone whether you are Canadian or immigrant or on student visa, you will make the basic per hour rate, so it should be the same for everyone in Gulf countries too.

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