Egyptian Prime Minister Mostafa Madbouly has determined the tasks and roles of the newly formed National Wages Council. According to an official document obtained by Al-Masry Al-Youm, the council will focus on implementing the Labour Law and setting a minimum wage for workers in all sectors nationwide. This decision considers workers' needs, their families' well-being, living costs, and changes in these costs. The goal is to achieve a balance between workers and employers.
The National Wages Council is mandated to review the minimum wage periodically, at least once a year. Additionally, the council will set a minimum annual increment, ensuring it is a specific percentage of the insurance wage. They will also establish application rules and inform relevant ministries about accepting or rejecting requests from concerned parties to reduce or exempt them from paying the annual increment. Furthermore, the council will examine wage structures across different sectors, professions, and economic activities.
The council will diagnose shortcomings in wage and incentive systems, proposing suitable solutions. Special consideration will be given to the most vulnerable groups and areas with weak wage conditions. Moreover, the council will review requests from employers to reduce or waive the annual increment due to extraordinary economic circumstances. They are required to make decisions within 30 days of the matter being presented.
The council will study international and regional agreements, recommendations, and decisions related to wage policies. They will conduct necessary research to reassess the minimum wage in coordination with relevant authorities. Furthermore, the council aims to develop a system to monitor the economic and social impacts of applying the minimum wage. This includes effects on employment, inflation, poverty levels, and living standards.
The council will prepare periodic recommendations to review existing policies. The Ministry of Planning will issue a decision to form a technical secretariat for the council, led by a representative from the Ministry of Planning with a rank of at least director-general or equivalent. The technical secretariat may seek assistance from experts to complete its work, subject to the approval of its head.
The technical secretariat will be responsible for monitoring economic and social indicators, as well as labour market indicators. They will prepare periodic reports on these matters and conduct studies to assist the council in its tasks and decision-making processes. Additionally, the secretariat will receive, examine, and respond to requests from employers regarding the reduction or exemption from the annual increment.
The formation of the National Wages Council and the definition of its roles aim to improve wage conditions and worker protections in Egypt. The council's tasks and the technical secretariat's responsibilities reflect the government's efforts to address workers' needs and enhance the balance between employers and employees across various sectors.
Key points
- The Egyptian government has defined the mandates of the National Wages Council.
- The council aims to set and review minimum wages and annual increments for workers.
- A technical secretariat will support the council's tasks and monitor economic and social indicators.
