Egypt Independent

Minimum wage for private sector to be discussed next week



The National Council for Wages is meeting next week to discuss the application of a minimum wage of LE1200 per month to the private sector as of January 2014 to be on a par with the public sector.
 
Ahmed al-Wakil, president of the Federation of Chambers of Commerce, said the goal is to increase wages to be commensurate with economic conditions and avoid increases in unemployment rates. “Some sectors would be exempted until the economic situation stabilizes,” he said.
 
On fears of price rises with the increase in the minimum wage, Al-Wakil said prices rise when demand is more than supply. “It has nothing to do with wages,” he said. “Consumers should not buy goods that are exaggerated in price.”
 
Informed government sources said investors’ associations require that the minimum wage increase be deducted from the social insurance per diem borne by business owners, which is 26 percent for fixed wages against 14 percent borne by workers, and 24 percent for variable wages against 11 percent.
 
 
Edited translation from Al-Masry Al-Youm