Muscat: Oman is actively reviewing a proposal to increase the minimum national wage from the current OMR325 to OMR400, as part of its ongoing efforts to strengthen economic stability and enhance the living standards of its workforce. The initiative, led by Minister of Labour Dr. Mahad bin Saeed Ba’awin, is currently under evaluation by key government bodies before a final decision is reached.
Speaking to a local radio station, Dr. Ba’awin confirmed that the government favours setting the minimum wage at OMR400, although further discussions and assessments are necessary. “We support raising the minimum wage to 400 Omani rials, but this remains under evaluation,” he stated.
The review process involves the Financial and Economic Committee, the Council of Ministers, and other relevant stakeholders to ensure a balanced approach that aligns with economic conditions and labour market dynamics.
Collaborative Efforts and Economic Considerations
The proposal stems from research conducted by the National Employment Program’s technical team and the Directorate General of Planning and Labour Market Policies. The recommended wage adjustment, ranging between OMR360 and OMR400, was first mentioned by Dr. Ba’awin at the “Together We Progress” forum last month.
“We are examining wage structures based on economic indicators such as inflation and average salaries. An initial draft of the proposal has already been submitted to the Secretariat General of the Council of Ministers,” Dr. Ba’awin explained.
The current minimum wage of OMR325 applies to all Omani workers, regardless of qualifications. The minister clarified that the proposed increase is driven by economic factors rather than an attempt to alter wages arbitrarily. “Our goal is not to lower wages but to ensure they are in line with economic realities, supply, and demand,” he said.
Expanding Job and Training Opportunities
Alongside wage reforms, Oman’s Labour Ministry has unveiled an ambitious operational plan for 2025, aiming to create 45,000 new job opportunities. This includes:
11,000 training and qualification programs to enhance workforce skills
10,000 job placements in the public sector
24,000 employment opportunities in private enterprises
Dr. Ba’awin emphasized the ministry’s commitment to training programs designed to bridge the gap between education and employment. These initiatives will include on-the-job training, wage support, and assistance for startups, freelancers, and SMEs holding Riyada cards. Currently, the compliance rate for the government’s training-linked employment programs stands at over 82%.
A History of Wage Adjustments
Oman has progressively adjusted its minimum wage as part of broader social and economic reforms aimed at improving living standards. The government first introduced a minimum wage in the 1990s, driven by the need to support local workers amid an evolving economy.
In response to the Arab Spring protests in 2011 and rising social demands, the minimum wage was raised to OMR200. A further increase in 2013 brought it to OMR325, where it has remained due to regional and global economic challenges.
Calls for Further Wage Increases
While the current discussions focus on raising the minimum wage to OMR400, some experts argue that a more significant adjustment is necessary. Nabhan bin Ahmed Al Battashi, Chairman of the General Federation of Oman Workers (GFOW), stressed the importance of establishing a sustainable wage that can withstand future economic fluctuations. Discussions within the Dialogue Committee are ongoing, with efforts to finalize a proposal for the Council of Ministers.
Meanwhile, Dr. Mohamad Al Mushaiki, an academic specializing in public opinion and mass communication, has advocated for a more substantial increase. He suggests raising the minimum wage for Omanis to OMR500 and setting a starting salary of OMR700 for university graduates. “We also need to implement a job seekers’ benefit program to ensure that every Omani citizen enjoys comprehensive social protection,” he stated.
As Oman navigates its economic reforms, the proposed wage hike is seen as a crucial step toward balancing the cost of living and ensuring fair compensation for its workforce. The final decision, expected in the coming months, will determine how the country moves forward in securing economic stability and social welfare for its people.