Planning Minister: Periodic bonus for the private sector is 7% of the basic wage

Egypt’s Minister of Planning and Economic Development, Dr Hala El-Said, who is also acting as chairperson of the National Wages Council (NWC), stated that the announcement of reaching a minimum wage in the private sector is an important step.

She added that NWC, through its various committees, tried to achieve a balance between the rights of workers to obtain a fair wage and the current challenging economic conditions due to the pandemic.
 “The new minimum wage guarantees an adequate standard of living while at the same time taking into account the difficult economic conditions that several sectors are going through,” she said.
El-Said added that NWC includes a balanced representation of:
• All parties from the relevant ministries.• Representatives of the private sector.• Chambers of commerce.• The federation of industries.• The Egyptian Workers Union.
She thanked all Council members for their efforts in deciding to determine the minimum and the value of the periodic bonus.
The NWC decision to set the minimum wage for workers in the private sector at EGP 2,400 will be mandatory for private sector establishments as of January 2022 while granting stumbling facilities a space of flexibility due to the pandemic.
“There is a deadline until next October to receive these requests and complaints from the affected facilities to discuss the possibility of excluding them,” El-Said explained.
Regarding NWC’s decision to set the periodic bonus at 3% of the insurance wage, El-Said explained that NWC prepared a study to calculate the insurance wage and its relationship to the basic wage and reached a rate of 3 more than 7% of the basic wage. The study was prepared through the Wages and Allowances Committee headed by Minister Mohamed Saafan, Minister of Manpower, and in cooperation with the National Insurance Authority
It was agreed to set a minimum allowance of EGP60 to be applied from this July, except in cases of establishments whose budget starts from January and increases have already been applied last January, which will implement the decision on the allowance in January next up with the new budget.