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Agreement granting 10 percent raise for Egypt's private sector workers to be signed on Tuesday

Ahram Online , Monday 17 Jul 2017
Views: 2684
Views: 2684

Egypt's Prime Minster Sherif Ismail is set to preside on Tuesday over the signing of a collective agreement with business and labour sector representatives to grant 18 million workers in the private sector a 10 percent raise starting July.

Minister of Manpower Mohamed Saafan said the raise will be a minimum of EGP 165 and a maximum of EGP 330 monthly.

According to Saafan, the new raise is based on an initiative presented by parliament’s Support Egypt majority coalition, who met with private business sector representatives to determine the amount of the raise.

The signing of the agreement will be attended by representatives from the Egyptian Trade Union Federation (ETUF), the Federation of Egyptian Industries (FEI), and officials from the ministries of youth, social solidarity and higher education. 

The new raise comes after Egypt's President Abdel-Fattah El-Sisi announced last month a set of measures to “lift burdens off the average Egyptian citizen.”

These measures mainly targeted workers in the country's public sector and minimum wage earners, including a10 percent raise in basic salaries for public employees not covered by the country's civil service law.

The measures came days before the government introduced new cuts to energy subsidies, raising prices of fuel up to 55 percent and electricity up to 42 percent for heavy usage categories. 

The fuel subsidy cuts were part of an economic reform package adopted in July 2014 that aimed to ease the country's growing budget deficit.

The government also recently more than doubled monthly food subsidy card rations, from EGP 21 to EGP 50 per person, a 140 percent increase with EGP 85 billion allocated from the state’s budget instead of a prior EGP 45 billion.

Egypt’s fiscal reform programme has also involved introducing new taxes and liberalising the Egyptian pound in an attempt to secure a $12 billion three-year loan from the International Monetary Fund (IMF).

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