[Egypt] From January minimum wage will apply to private sector for first time

Egypt’s National Wages Council has announced that the country’s minimum wage will be applied to private-sector workers for the very first time from January 1, 2022, Egypt Today reports.

In its December 21 meeting, the Council also reportedly agreed to determine the value of the periodic increment in the amount of 3 per cent; i.e. LE 70 as a minimum, applied to all private sector establishments across the board in accordance with the financial accounting year of each business.

Members of the National Wages Council agreed that the decision of the National Wages Council to set the minimum wage for workers in the private sector at LE 2,400 will be mandatory for private sector establishments from January 2022. Businesses that were struggling from the economic pressures of the COVID-19 pandemic were granted some flexibility to recover; the Council asked that they be exempt from the application of the minimum wage until economic conditions improve.

Minister of Planning and Economic Development and Chairman of the National Wages Council, Hala El-Said, said the announcement of the start of the implementation of the minimum wage in the private sector is an important and unprecedented step in activating the functions of the National Wage Council. She added that the Council tried, through its various committees, to achieve a balance between workers' rights to obtain an adequate wage that guarantees an adequate standard of living while at the same time taking into account the difficult economic conditions that several sectors are going through and their inability bear new burdens.

El-Said said that the decisions of the National Council for Wages will be binding, according to the new labour law discussed in the Senate, and will be discussed in the House of Representatives within weeks.

She said that the council includes a balanced representation of all parties from the relevant ministries, representatives of the private sector, chambers of commerce, the Federation of Industries and the Federation of Egyptian Workers. The Minister thanked all council members for their efforts in reaching a decision setting the minimum and determining the value of the periodic bonus.

Egypt’s National Wages Council has announced that the country’s minimum wage will be applied to private-sector workers for the very first time from January 1, 2022, Egypt Today reports.

In its December 21 meeting, the Council also reportedly agreed to determine the value of the periodic increment in the amount of 3 per cent; i.e. LE 70 as a minimum, applied to all private sector establishments across the board in accordance with the financial accounting year of each business.

Members of the National Wages Council agreed that the decision of the National Wages Council to set the minimum wage for workers in the private sector at LE 2,400 will be mandatory for private sector establishments from January 2022. Businesses that were struggling from the economic pressures of the COVID-19 pandemic were granted some flexibility to recover; the Council asked that they be exempt from the application of the minimum wage until economic conditions improve.

Minister of Planning and Economic Development and Chairman of the National Wages Council, Hala El-Said, said the announcement of the start of the implementation of the minimum wage in the private sector is an important and unprecedented step in activating the functions of the National Wage Council. She added that the Council tried, through its various committees, to achieve a balance between workers' rights to obtain an adequate wage that guarantees an adequate standard of living while at the same time taking into account the difficult economic conditions that several sectors are going through and their inability bear new burdens.

El-Said said that the decisions of the National Council for Wages will be binding, according to the new labour law discussed in the Senate, and will be discussed in the House of Representatives within weeks.

She said that the council includes a balanced representation of all parties from the relevant ministries, representatives of the private sector, chambers of commerce, the Federation of Industries and the Federation of Egyptian Workers. The Minister thanked all council members for their efforts in reaching a decision setting the minimum and determining the value of the periodic bonus.