Proposals for a private sector minimum wage are moving forward
Proposals to mandate a minimum wage for private-sector employees will be drafted this month, the Planning Ministry said in a statement over the weekend following a meeting with the National Council for Wages (NCW).
This would be the first time that private sector employers are required to pay their employees a minimum monthly wage, impacting at least 12.6 mn workers.
How much are we talking about? The NCW will make its official policy known later this month, though a source at the council claimed earlier this year that the minimum wage could be set at EGP 2k per month.
New bonuses for the private sector? The NCW is also looking at introducing bonuses for private-sector employees this year, and will finalize proposals before the end of May, according to El Watan.
A refresher: The move to set finally private-sector minimum wage rates comes following years of running hither and yon in vain. NCW had met back in 2019 to discuss implementing a minimum wage for those employed in the private sector, with an eye to set a minimum salary of EGP 2k at the time. The proposal to impose a binding minimum wage was put on the back burner because of the pandemic.
Civil servants are also getting a wage bump: The minimum wage for civil servants will increase to EGP 2.4k from EGP 2k at the start of the next fiscal year in July. Other public sector employees will see their basic salaries rise 13%.