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Ministerial decision issued on periodic bonuses for Omani Workers

Ministerial decision issued on periodic bonuses for Omani Workers

Times of Oman27-07-2025
Muscat: The Ministry of Labour (MoL) has issued Ministerial Decision No. 317/2025 concerning the determination of the minimum periodic bonus and the regulation of its disbursement to Omani employees working in the private sector.
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.
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