Circular rationalises increments, allowances and remunerations

Oman Saturday 02/January/2021 19:52 PM
Circular rationalises increments, allowances and remunerations

Muscat: The Ministry of Finance issued a financial circular on allowances, increments and other remunerations disbursed to some employees of the State’s Administrative Apparatus.

The circular reads as follows: “In pursuance of efforts to follow up and revise some areas of spending in ministries and government units in a manner that rationalises public expenditure and optimises financial resources and, in revision of occupational systems and regulations to upgrade the efficiency of performance and regulate and unify job privilege payments with the purpose of achieving justice and equality, the Ministry of Finance informs all ministries, government units and public establishments that the following has been decided:

First (allowances, increments beyond the deserved salary):

1. A 50 percent reduction of allowances disbursed to employees in all government units beyond the Unified Payroll system cited under Royal Decree No. 78/2013, from 1 April 2021. These include management allowance, allowance for “restructuring tasks”, administrative-work-nature allowance, technical-work-nature allowance, risk allowance, complementary allowance, allowance for working in Duqm, “rare practice” allowance, “user allowance”, personnel services allowance, ‘Majlis allowance’, ‘clinic allowance’, ‘system allowance’, ‘audit allowance’ and any other allowances or bonuses granted to employees vide internal regulations and decisions.

In case an employee gets more than one of such allowance, the 50 percent reduction will apply to the highest-paid allowance and the rest will be stopped.

The ranks of employees listed below will be exempted from Item (1) above: the judiciary (judges and employees of similar ranking), occupants of medical jobs and paramedical jobs in government medical (civil, military) establishments, occupants of jobs of the diplomatic corps at the Foreign Ministry, academicians, teachers and air navigation jobs.

Second (Privilege payments beyond the deserved salary):

With effect from 1 April 2021, all types of privilege payments made to employees beyond the framework of the deserved salary and its standard allowances will be stopped.

Third (Senior Officials): Provisions of Items “First” and “Second” shall be applied to senior officials, occupants of the special grade and above.  In serving the public interest, the Ministry of Finance exhorts all ministries, government units, public authorities, establishments and legal entities to fully abide by the provisions stated in this circular with effect from 1 April 2021.

All are required to provide the Ministry of Finance with a detailed statement of accounts of allowances, increments and privilege payments disbursed to employees beyond the Unified Schedule of Grades and Salaries issued under Royal Decree No. 78/2013. The statement, to reach the Ministry of Finance by 31 January 2021 at the latest, should include the type and value of payments, the number of beneficiaries per financial grades and the total annual cost of payments.

Internal audit units at every department are required to fully undertake their role of following up the implementation of this edict.