The National Wage Council (NWC) announced on Monday 28 June the raising of the minimum wage of private-sector employees from EGP 2,000 to EGP 2,400 per month effective January 2022.
NWC also added in its announcement that a periodic bonus would be handed to workers for the fiscal year of 2021/2022 at a value of three percent of the worker’s insurance. This is expected to be a minimum of EGP 60 and is also equivalent to seven percent of the basic wage according to the Labor Law No. 12 of 2003.
Hala El-Said, the Minister of Planning and Economic Development, stated that the decision to raise the minimum wage, and to add a periodic bonus, takes into account the challenges workers have been facing since the spread of COVID-19 and its impact on workplaces.
The statement highlighted that private firms affected by this decision are allowed to file a complaint until October 2021 to NWC’s committee of complaints and wages.
According to ISPI, COVID-19 had put the private sector in Egypt in a rapid contraction phase; meaning it was declining, which increased the unemployment rate. However, the Economic Research Forum argues that Egypt was able to handle the repercussions of the pandemic on the private sector by setting monetary and fiscal policies by the Ministry of Finance and the Central Bank of Egypt in the first half of the year 2020.
“Along with the emergency support provided by international financial institutions, are so far helping Egypt weather the shock.” Economic Research Forum states