Egypt’s National Council for Wages sets the new minimum wage at EGP2400 for workers in the private sector
The National Council for Wages (NCW) decided, in its recent meeting headed by Dr. Hala El-Said, Minister of Planning and Economic Development who is also acting as chairperson of the National Council for Wages, to set the minimum wage for workers in the private sector at EGP2, 400 per month. That considers the economic conditions of the establishments that are currently unable to comply with it and their exception to that, starting from 1 January 2022.
With the adoption of flexible mechanisms to encourage business owners to implement it, and to allow the affected establishments to submit their complaints no later than next October to the Complaints Committee of the Council and the Wages Committee of the Council, whether it is separately for each facility or through its affiliated unions.
The Council also approved disbursing the periodic bonus to workers in the private sector at 3% of the insurance contribution wage proven in the form of two insurances and less than 60 pounds, starting from July 2021.
The meeting was attended by Minister of Manpower Mr Mohamed Saafan, Minister of Supply and Internal Trade Dr Ali El Moselhi, President of the National Council for Women Dr Maya Morsi, Head of the Central Agency for Organization and Administration (CAOA), Dr .Saleh Al Sheikh, Head of the Central Agency for Public Mobilization and Statistics Major General Khairat Barakat, and Director of the Labor Market Policies Unit at the Ministry of Planning; Adviser to the National Council for Wages Dr Hanan Nazir, representatives of the Ministries of Social Solidarity, and the public business sector.
Egypt’s National Council for Wages discussed the results and recommendations and other issues related to the Council’s mandate. During the meeting, it was agreed to approve the periodic bonus for the new fiscal year 2021/2022, at a rate of 3% of the insurance wage, equivalent to 7% of the basic wage in Labor Law 12 of 2003, less than EGP60.
It was also agreed – and based on the recommendation of the Wages and Allowances Committee headed by Mr Mohamed Saafan, Minister of Manpower – that the minimum wage would be EGP2,400, to be implemented from January 2022.
For her part, Dr Hala El-Said, Minister of Planning and Economic Development, who is also acting as chairperson of the National Council for Wages, confirmed that the Council’s decisions regarding the periodic bonus or minimum wage tried to take into account several considerations.
Among those factors are the interest of workers and the need to achieve an appropriate increase in wages and take into account the economic conditions that the world is going through. The private economy has been affected in light of the Corona pandemic, hence the need to reduce burdens on establishments to continue their economic activities efficiently and perform their duties towards their employees.
It is noteworthy that the National Council for Wages is responsible, following the decision of the Prime Minister, to set the minimum wage at the national level. That should consider:
• Living expenses
• The means and measures that ensure a balance between wages and prices
• Wage structure for various professions, sectors and activities
• Development of policies for minimum and maximum wages
• Drawing up wages national policies and developing comprehensive national programs