Egypt Independent

Govt official: Private sector cannot be forced to raise min wage

A high government official has said the private sector cannot be forced to raise minimum wages without the agreement of its representatives on the High Council on Wages.

He added that the Federation of Egyptian Industries and the various commerce chambers are adamant about a minimum monthly salary of LE450 in the private sector, while the Egyptian Trade Union Federation is asking for LE1200.

He further claimed that raising the minimum wage would be a burden on small and medium-size private sector companies, which account for 80 percent of the economy.

He also said that if private sector companies are forced to raise salaries they would probably hire workers on a temporary basis and without permanent contracts, in which case workers would have no rights in terms of social or medical security. The official however did not mention whether the government would intervene to provide the necessary measures to ensure job security.

Translated from the Arabic Edition.