Wage Increase

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  / 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.

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  / 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.