Subject: Minimum Wage and Annual Increase in Private Sector

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Minimum Wage and Annual Increase in Private Sector
Sharkawy & Sarhan, Client Alert
Issue 121, 4 October 2021
The Ministry of Planning and Economic Development Decree no. 57 of 2021 (the “Decree”) was issued on 13 September 2021 to guarantee a minimum wage of EGP 2400 for private sector employees from 1 January 2022.

The Decree allows employers to apply for an exemption from the above rule if the organization is facing economic difficulties preventing it from applying the new statutory minimum wage. In order to benefit from this exemption, a request must be made to the relevant union and submitted before 31 October 2021. The request for exemption must be reasoned and must be accompanied by supporting documents. The timeline of obtaining the exemption is not clear in the Decree.

In addition, the Decree stipulates that private sector employees are entitled to an annual salary increase of 3% of the Insurable Salary (currently capped at EGP 8,100) with a minimum increase of EGP 60.

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