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    HomeGovernance, Policy & Regulations ForumPolicy & Regulations ForumStartups in Egypt Set to Implement New Minimum Wage Requirements in May

    Startups in Egypt Set to Implement New Minimum Wage Requirements in May

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    In a move aimed at bolstering the welfare of workers amidst economic shifts, Egypt ’s National Wage Council, led by Dr. Hala Al-Saeed, Minister of Planning and Economic Development, has announced an increase in the minimum wage for private sector employees to 6,000 Egyptian pounds (US$126) starting May 2024.

    Dr. Al-Saeed emphasized that the decision to raise the minimum wage underscores the government’s commitment to safeguarding workers’ interests, particularly in light of recent domestic and international economic changes. The move reflects efforts to strike a balance between the needs of both employers and employees amid ongoing challenges while ensuring the preservation of workers’ rights and enhancing their quality of life.

    The trajectory of minimum wage adjustments in Egypt was highlighted by Dr. Al-Saeed, who noted that it had risen from 2,400 pounds in January 2022 to 6,000 pounds in the upcoming May, encompassing all wage components including the employer’s contribution to insurance subscriptions. Notably, micro-enterprises with fewer than 10 employees will be exempted from this increase, with a dedicated grievances and complaints committee, chaired by the Minister of Labor, set to address any issues arising within a three-month period.

    Minister of Labor, Hassan Shehata, echoed the significance of the decision, aligning it with President Abdel Fattah El-Sisi’s directives to prioritize worker support and fortify labor relations. Shehata underscored the importance of enhancing workers’ living standards and fostering conducive work environments, emphasizing the mutual benefits accruing to both workers and employers through increased productivity.

    With the National Wages Council’s decision effective immediately, Minister Shehata outlined plans for the Ministry to disseminate detailed executive regulations to labor directorates across Egypt’s governorates. These regulations will guide the implementation process within establishments, in accordance with Labor Law №12 of the year 2003.

    The wage increase announcement underscores Egypt’s ongoing efforts to address socio-economic concerns and foster inclusive growth, signaling a commitment to enhancing the well-being of its workforce and promoting sustainable development.

    Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert. As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard.

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