On 30th March 2019, President Abdel-Fattah El-Sisi announced the minimum wages and the salary increases and adjustments that will enter into application on 1st July 2019. The scope of application and details of the announcement are as follows:
State Servants who subject to Civil Service Law
The announcement decided the following wage benefits to state servants who are subject to the application of the Civil Service Law No. 81/2016 (the "Law")
- Annual wage increment of 7% of the basic wage with a minimum of EGP 75.
- Exceptional additional increment of EGP 150 to confront the high inflation.
- Increasing the minimum monthly wage from EGP 1,200 to EGP 2,000.
State servants who are subject to the Law include those who work in Ministries, public authorities and administrations, governorates and municipalities.
Other State Servants
With regards to state servants who do not subject to the application of the Law, the announcement decided the following benefits for them:
- Annual wage increment of 10 % of the basic wage with a minimum of EGP 75.
- Increasing the minimum monthly wage from EGP 1,200 to EGP 2,000.
This increment – primarily – applies to those who work in the public sector units (subject to law No. 48/1978 and its amendments) and the workers in the public business companies (subject to law No. 203/1991 and its amendments).
Private Sector Workers
The application of the announcement on the private sector workers is not clear. Private sector workers – technically - are not considered as "state workers" and they are subject to the application of the Labor Law No. 12/2003.
According to the Labor Law, private sector workers are entitled to annual wage increment that shall be determined by virtue of a decision from the National Council for Wages. Such increment shall not be less than 7% of the basic social insurance salary.
April 3 2019
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.