Employment

Oman to increase minimum wage to offset inflation

March 27, 2025, 4:56 PM

Unemployment in Oman was down to 4 percent at the end of last year

Minimum wage could hit OR400
45,000 jobs to be created
14% jobless rate for under-24s

Oman is planning to increase the minimum wage by a fifth to counter higher costs of living, according to manpower minister Mahad Baawain.

Baawain said in a radio interview that the cabinet is considering a recommendation to raise the minimum wage to OR400 ($1,035) per month.

“We have already made a decision to increase the minimum wage and it is now under the consideration of the cabinet of ministers. It has been decided after a careful review of the annual inflationary rates and higher costs of living, to raise the minimum wages,” Baawain said.

Oman’s inflation rose by 1 percent month on month in February, according to the National Center for Statistical Information (NCSI).

The sultanate set the minimum wage to OR325 per month in July 2023, irrespective of qualifications of employees.

Last week, Baawain said that his ministry is planning to create 45,000 new jobs this year.

About 25,000 new graduates enter the workforce looking for work each year, according to the ministry of manpower.

Unemployment was under 4 percent at the end of November, down from more than 5 percent in September, according to local media.

Unemployment among Omanis aged under 24 was 14 percent in November, down from 17.5 percent in October, the Oman Daily Observer reported, citing NCSI data.

Among bachelor degree holders, 7 percent were jobless in November, down from 8 percent in October, the paper said.