Home Insights Oman waives fines on workers from last 7 years This move offers employees a chance to renew their work permits for the next two years by Nida Sohail February 5, 2025 The government of Oman has decided to waive fines accumulated by workers over the past seven years. Fees incurred during the Covid-19 period will also be waived. According to a report in the Oman Observer, workers have been given a deadline until the end of July to correct their working statuses in the country, either by renewing their licenses or terminating their services without penalties. Read: Oman and Kuwait announce Isra Wal Miraj holidays for 2025 Dr Mahad bin Saeed Baowin, Minister of Labour, stated that Oman aims to provide workers with the opportunity to regularise their status in order to live and work in the country under proper conditions. This move offers employees a chance to renew their work permits for the next two years. Employers also have the option to terminate their employees’ services and provide them with an air ticket to return to their home country, should they choose to do so. Important: UAE-Oman Hafeet Rail secures $1.5bn financing facility The minister also highlighted that all existing fines and fees will be canceled, as mentioned in an interview with Oman TV. Currently, fines in Oman have only been imposed on the registries and are not based on the number of workers. This process is expected to continue for the next two to three months. Employers in Oman are required to register their Omani employees with the Ministry of Manpower (MOM) and the Public Authority for Social Insurance (PASI). They must contribute 10.5 per cent of the employee’s basic salary to PASI, while the employee contributes 6.5 per cent of their basic salary to the entity. This contribution covers the employee’s pension scheme, as well as allowances and payments in case of workplace-related injuries or illnesses, according to a MEED report. It is after the period of 3 months, that the fines will be imposed based on the number of workers whose salaries are not being transferred through the Wage Protection System (WPS). This system has been in place in the sultanate since mid-2023. Must know: Oman approves a draft law on personal income tax In 2021, 2022, and 2023, the Ministry of Labour in Oman helped save around 50,000 to 60,000 jobs in the country by negotiating with companies to retain as many Omanis as possible. The public sector in the country hires around 12,000 to 16,000 new individuals each year, the minister reiterated. Tags fines Gcc Country oma work permits worker fines You might also like This GCC country has just approved a draft law on personal income tax India opens F&B sector to 100% foreign investment, ownership Here’s how DFSA cracked down on financial misconduct in 2024 UAE amends labour law, introduces stricter fines for violations