2021-01-07
Oman Investment Authority launches project to rationalise compensation and benefits of State-Owned Enterprise employees
Oman Investment Authority (OIA) has announced the completion of its project to rationalise compensation and benefits for employees of State-Owned Enterprise (SOEs), as part of OIA’s approach to promote profitability, efficiency, and productivity of SOEs in various aspects. The project aims to rationalise salaries, allowances, and benefits in a realistic approach in accordance with the dynamics that the Omani economy is facing. In addition, the project aims to enhance financial sustainability through the projected savings from this scheme, taking into account compensation and benefits competitiveness in some sectors. The new scheme will be effective from April 1st of this year.
Planning of the project started in July of last year, when OIA commissioned Takatuf, one of its subsidiaries, to conduct a comprehensive study of SOEs within three main aspects; Human Resources Policies, Compensation and Benefits, and Organisation Structures. Takatuf also studied the best practices of governance of those aspects globally for SOEs, which covered a number of member states of the Organisation for Economic Co-operation and Development.
In light of these studies, a regulatory framework has been produced that takes into account introducing an Omani standard of reference that fits within the national economy and puts in consideration the competitiveness of the business environment in the Sultanate. In addition, the new framework links compensation and benefits to the company’s performance and the mandate, while guarantees fairness both at the level of the SOEs and economic sectors. The framework was designed to reduce the side effects that may result from this project. The new regulatory framework complies the related legal and administrative requirements.
A number of workshops targeting Chairpersons of Boards of Directors, CEOs, and Human Resources Heads will accompany the launch of the project in order to familiarise them with the new framework and its implementation mechanisms.
A number of workshops targeting Chairpersons of Boards of Directors, CEOs, and Human Resources Heads will accompany the launch of the project in order to familiarise them with the new framework and its implementation mechanisms.
