Wage Increase

robert villarin · 2014-09-15T00:26:52+02:00

Learn about the basis of salary wage increases in Oman, including whether it affects total salary or basic pay. Get insights for new employees.

robert villarin Member

Member since 25 May 2014

robert villarinMember14 September 2014 22:26:52

Hi to all,

Can somebody enlighten me on what will be the basis of the salary wage increase in Oman, is it on the聽 Total Salary (Basic + Allowance) or on the Basic Salary alone?

Another thing, for a new employee like me who will be joining a respectable company in Oman this month, will I be entitled to a salary increase assuming the salary increase will take effect on January of 2015?

Thanks!

GuestPoster411 Guest

GuestPoster411Guest15 September 2014 04:36:57

Hello robert villarin,

Barring some leading brands in the oil and gas / banking sectors, most other companies do not really follow any set processes, or abide by any specific appraisal聽 / increment procedures.

The yardstick of measurement is usually if a company performs well financially, the employees would get rewarded depending on how well their appraisals are as given by their bosses. If a company does not do well financially during that financial year, then seldom are any incentives distributed to its employees.

But the Ministry of Manpower has decreed that irrespective of the company's performance, every year a 3% increment in the basic salary is to be given as mandatory increment for all employees. Most companies in Oman get away because of this rule by giving its employees just 3% and declaring that the year in review has not been financially a good one.

Also companies would rather give increments to its employees, if they must, through incentives and not on the basic since basic increment would mean contributing more towards the employees PF which is a recurring cost for the company.

robert villarin Member

Member since 25 May 2014

robert villarinMember15 September 2014 04:54:25

Sumitran wrote:
Hello robert villarin,

Barring some leading brands in the oil and gas / banking sectors, most other companies do not really follow any set processes, or abide by any specific appraisal聽 / increment procedures.

The yardstick of measurement is usually if a company performs well financially, the employees would get rewarded depending on how well their appraisals are as given by their bosses. If a company does not do well financially during that financial year, then seldom are any incentives distributed to its employees.

But the Ministry of Manpower has decreed that irrespective of the company's performance, every year a 3% increment in the basic salary is to be given as mandatory increment for all employees. Most companies in Oman get away because of this rule by giving its employees just 3% and declaring that the year in review has not been financially a good one.

Also companies would rather give increments to its employees, if they must, through incentives and not on the basic since basic increment would mean contributing more towards the employees PF which is a recurring cost for the company.

HI sumitran,

Thank you very much for that prompt reply. At least I know what to expect.

Warm Regards.