Egypt to apply minimum wage for private sector's worker for 1st time in January

CAIRO - 21 December 2021: The National Wages Council revealed Tuesday that as of January 1, 2022, the minimum wage will be applied for the private sector workers

The Council also agreed in its meeting today; To determine the value of the periodic increment in the amount of 3 percent of the insurance wage, i.e. LE 70 as a minimum, which is applied to all private sector establishments in a balanced manner according to the accounting financial year of each establishment.

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 as of January 2022, after stumbling facilities due to the economic pressures imposed by the Corona pandemic were granted a space of flexibility for progress The Council requests an exception from the application of the minimum wage until its economic conditions improve.

Minister of Planning and Economic Development and Chairman of the National Wages Council, Hala El-Said, stated that 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, and 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 cannot bear new burdens.

She added that the decisions of the National Council for Wages will be binding according to the new labor law that was discussed in the Senate, and will be discussed in the House of Representatives within weeks.

El-Said explained 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, and thanked all council members for their efforts in reaching a decision setting the minimum and determining the value of the periodic bonus.