Omani private sector bonuses have received fresh regulatory guidance under Ministerial Decision No. 317/2025. The Ministry of Labour (MoL) issued detailed provisions outlining how private establishments will award and manage periodic bonuses for Omani employees.
According to the decision, Omani workers become eligible for a bonus starting January 1 each year. However, they must have completed at least six months of service with the same employer. The bonus will depend on the employee’s performance evaluation and follow a tiered scale.
Employees receiving an “Excellent” evaluation will get 5 percent of their basic salary. Those rated “Very Good” will receive 4 percent. Workers with a “Good” rating earn 3 percent, while an “Acceptable” evaluation grants 2 percent. Employees who receive a “Poor” rating will not qualify for any periodic bonus.
Additionally, workers can challenge the results of their evaluations. The Ministry allows appeals to be submitted through its designated administrative division.
The ruling also outlines what happens when an employee transfers between companies during the year. The company where the employee worked the longest—at least one full year—must prepare the performance report. However, the new employer is responsible for paying the bonus.
Employers may reduce the bonus, but only with proper justification. A valid economic reason must be presented and approved by the committee referenced in Article 45 of the Labour Law.
Furthermore, the decision outlines specific cases for suspending bonuses. Employers may withhold the bonus if they are investigating an employee for a workplace-related crime. If the court later acquits the employee, the employer must retroactively pay the suspended bonus. Employers may also suspend the bonus if the employee takes extended unpaid leave or is absent for more than six months.
Once the conditions for reduction or suspension no longer apply, the bonus payments must resume as per the original guidelines.
To enforce compliance, the Ministry will impose a fine of OMR 50 per affected employee on any company that fails to follow the rules.
In summary, the Ministry of Labour now ties Omani private sector bonuses directly to performance, while offering structured appeal processes and imposing penalties for employer non-compliance. These new rules aim to improve fairness and transparency in reward systems across the private sector.
