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Monday, 02 August 2021

Egyptian parliament votes in favour of raising minimum bonuses, incentives for state employees

Minister of Finance Mohamed Maait announces new increase will come into effect as of the first of July to help state employees meet their living needs

Gamal Essam El-Din , Sunday 23 May 2021
Parliament
Egyptian parliament. Reuters
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Egypt's parliament – the House of Representatives – approved on Sunday an eight-article law aimed at raising minimum bonuses and incentives granted to state employees.
 
A report prepared by the Labour Force Committee and the Budget Committee clarified that the new bill comes to reflect the state's commitment to achieving economic and social stability for the families of state employees.
 
Minister of Finance Mohamed Maait said the new increase in bonuses and incentives will come into effect as of the first of July.
 
"A bonus of EGP 75 plus an incentive of EGP 175 will make a minimum increase of EGP 250 for each state employee as of the first of July," said Maait. "A state employee in the lowest job rank (the sixth rank) will obtain EGP 250 bonus and incentive," he added.
 
"This increase was decided as a kind of financial support to state employees at a time of difficult economic conditions, and while the coronavirus pandemic hit hard many sectors of society," said Maait.
 
Last March, Maait said that the minimum wage and bonus increases for state employees - working at the administrative body of the state - will cost the government EGP 37 billion in total.
 
Parliament speaker Hanafy Gibaly said state employees will benefit from the new bonus and incentive increases even when they go into retirement.
 
The first article of the bill states that the minimum periodical bonus granted to state employees, addressed by the 81/2016 Civil Service Law, will be increased to be EGP 75 per month.
 
As for state employees not addressed by the 81/2016 Civil Service Law, article two indicates that they will be granted a special bonus at a rate of 13 per cent of their basic salary along with a minimum of EGP 75 per month, as of the first of July 2021.
 
Moreover, article three states that an additional incentive granted for state employees and workers, both addressed and not addressed by the Civil Service Law, will be increased between EGP 225 and EGP 400, depending on the employee's job rank.
 
"Workers at the third rank will get an additional incentive of EGP 225; those at the second rank will get EGP 275; those at the first rank will get EGP 325 and those at "excellent rank" will get EGP 400," said the report.
 
Article five also states that workers in the public sector as well as public enterprise companies will also be given a grant equal to that paid to those working at the state's administrative units.
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