Last Update 1:19
Minimum wage in Egypt is irrelevant for poverty: ILO expert
Minimum wage legislation will not affect the huge numbers of workers employed by the informal sector of the economy, meaning that it will not be enough to tackle poverty
Ahmed Feteha, Tuesday 14 Jun 2011
Share/Bookmark
Views: 2842
Minimum wage

The manner through which the government plans to implement minimum wage regulation in Egypt will have minimal impact on improving the poverty situation, argues Dorothea Schmidt, senior employment expert at the International Labour Organization (ILO).

“The LE700 that the government wants to set as a minimum wage in both the public and the private sectors shouldn’t involve that much debate," said Schmidt to Ahram Online on Tuesday, adding that large companies wouldn't be harmed by this step, as it implicates only a small increase in production costs.

Schmidt believes that informal workers are ignored by the new policies, as they do not tackle the wage conditions of those employed in the informal sector, a group with the lowest average wage rates in the country.

Statistics suggest that over 35 per cent of Egypt's labour is working in vulnerable jobs, lacking social insurance, health insurance, unionisation, etc. Informal employment in the private sector includes up to 75 per cent of total labourers.

Schmidt explains that women, a group that particularly suffers from injustice in the labour market, will have little benefit from the minimum wage legislation due to employment conditions.

"Out of every 100 women in Egypt, 20 are active in the labour market. Out of these 20 women only 10 are actually able to get jobs; out of these, only 2 are formally employed and will possibly benefit from the wage regulations," she adds.

"All these debates on minimum wage will not help improve living conditions of Egyptians," she concludes.

Schmidt explains that since the informal sector is very large and highly deregulated, it is unlikely to comply with any minimum wage regulation set by the government.

The ILO expert suggests working with the informal sector, assisting it to raise productivity, as an alternative way to improve living conditions for labourers in Egypt. 





Short link:

 

Email
 
Name
 
Comment's Title
 
Comment
Ahram Online welcomes readers' comments on all issues covered by the site, along with any criticisms and/or corrections. Readers are asked to limit their feedback to a maximum of 4000 characters (roughly 200 words). All comments/criticisms will, however, be subject to the following code
  • We will not publish comments which contain rude or abusive language, libelous statements, slander and personal attacks against any person/s.
  • We will not publish comments which contain racist remarks or any kind of racial or religious incitement against any group of people, in Egypt or outside it.
  • We welcome criticism of our reports and articles but we will not publish personal attacks, slander or fabrications directed against our reporters and contributing writers.
  • We reserve the right to correct, when at all possible, obvious errors in spelling and grammar. However, due to time and staffing constraints such corrections will not be made across the board or on a regular basis.
1



Mahmoud
14-06-2011 10:43pm
0-
2+
The incredible lost opportunity
Egypt GNP 2010 was 500 B$ while GDP 218.4 B$ the difference is Egyptian income abroad due to local investment obstacles and previous regime corruption. Fixing the economic environment although tough but definately not impossible.
Email
 
Name
 
Comment's Title
 
Comment

© 2010 Ahram Online. Advertising