Egypt’s NWC sets minimum wage at LE 2,400 for private sector

CAIRO – 28 June 2021: Egypt’s National Wages Council (NWC) set the minimum wage for private sector workers at LE 2,400 ($153) per month, according to Ministry of Planning.

NWC which is headed by the Ministry of Planning Hala El-Said clarified that the new decision takes into account the economic conditions of the establishments that are currently unable to comply, and their exception to that, starting from 1 January 2022.

The decision was attributed to the adoption of flexible mechanisms to encourage business owners to implement the new ruling, and to give the affected establishments the opportunity to submit their complaints no later than October to the council’s complaints and wages committees.

The NWC also approved the disbursal of a periodic bonus to workers in the private sector at 3% of the insurance contribution wage for the worker, which will be proven by two insurance submissions. Starting from July 2021, the bonus should be at least EGP 60.

The council discussed the results and recommendations of the session held by its Wages and Allowances Committee regarding the approval of the minimum wage for private sector workers. This covers the new periodic bonus for workers in the private sector for the year 2021, and other issues related to the Council’s mandate.

During the meeting, it was also agreed to approve the periodic bonus for fiscal year (FY) 2021/22 at a rate of 3 percent of the insurance wage, equivalent to 7 percent of the basic wage in Labor Law 12 of 2003, and less than LE 60.

Meanwhile, based on the recommendation of the Wages and Allowances Committee headed by Minister of Manpower Mohamed Saafan, it was agreed that the minimum wage stands at LE 2,400, which will be implemented from January 2022.

For her part, El-Said confirmed that the NWC’s decisions regarding the periodic bonus or minimum wage tried to take into account several considerations.

Foremost of these is the interest of workers and the need to achieve an appropriate increase in wages, whilst taking into account the current global economic conditions due to the novel coronavirus (COVID-19) pandemic.

It also takes into account the need to reduce the burdens on economic establishments to be able to continue their economic activities efficiently, as well as continue to perform their duties towards their employees.