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Saturday, 18 September 2021

Egypt raises private sector minimum wage to EGP 2,400 a month

The NWC also approved the disbursal of a periodic bonus to workers of 3 percent of the worker’s insurance contribution (equivalent to 7 percent of the basic wage according to Labor Law 12 of 2003).

Doaa A.Moneim , Monday 28 Jun 2021
Hala El-Said
Minister of Planning and Economic Development Hala El-Said (Photo: Al-Ahram)
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Egypt’s National Wages Council (NWC) issued a decision on Monday setting the minimum wage for private sector workers at EGP 2,400 ($153) per month, up from the previous EGP 2,000, starting January 2022. 

Private entities affected by the decision can submit any complaints no later than October to the council’s complaints and wages committees, according to Minister of Planning and Economic Development Hala El-Said, who heads the NWC.

The NWC also approved the disbursal of a periodic bonus to workers of 3 percent of the worker’s insurance contribution (equivalent to 7 percent of the basic wage according to Labor Law 12 of 2003).

Starting 1 July, the bonus should be at least EGP 60.

Minister El-Said affirmed that the NWC’s decisions regarding the periodic bonus and minimum wage takes into account several considerations amid current challenges, including the current global economic conditions caused by the COVID-19 pandemic.

“It also takes into account the need to reduce the burdens on economic establishments so they can continue their economic activities efficiently, as well as continue to meet their duties towards their employees,” El Said noted.

In March, President Abdel-Fattah El-Sisi directed the government to raise the minimum wage for state employees to EGP 2,400 a month, up from the current EGP 2,000, as well as raise pensions by 13 percent.

Such an increase is expected to cost the state’s budget close to EGP 37 billion, while the pension increase is anticipated to cost around EGP 31 billion, according to the finance ministry.

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