By Beatrice Thomas
New rules will force all employers to pay wages into their employees bank accounts
Cash-in-hand wages will become a thing of the past in Oman under new rules which will force all employers to pay wages into a bank account, the Times of Oman newspaper reported.
The Ministry of Manpower (MoM) and Central Bank of Oman (CBO) is in the process of implementing the Salary Payment System (SPS), which will apply to all workers in all sectors, officials confirmed.
“The process of implementing SPS began in December 2013; we have started to compile data," an official from MoM said.
When the new system is in place, employers cannot pay salaries in cash but only through registered agents approved by the CBO.
The system is aimed at ensuring that employees are paid salaries on time and in accordance with their contract. It will be applicable to all employees - local and expatriates.
"By ensuring that all salary payments are routed through banking channel, the system enables maintenance of proper record of payment or non-payment of salary which can be relied upon to settle any dispute,” the official said.
“The system is particularly beneficial to low salaried and uneducated employees who are vulnerable to exploitation by the employers.”
Under the system, employers have to choose one of the financial service providers (registered agents) such as banks, money exchange centres or any other service providers registered and approved by the CBO to distribute an employee’s salary.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.