Work and Wages

Minimum Wage

In accordance with the Egyptian Constitution, the economic system ensures equal opportunities and fair distribution of development returns, reduce the differences among incomes and adhere to a minimum wage and pension ensuring a decent life, as well as a maximum one in State agencies for every salaried employee according to the Law.

In accordance with the Egyptian Labour Law 2003, National Council for Wages (NCW) sets minimum wages in the country considering the cost of living and finding a balance between wages and prices. The National Wages Council is composed of members representing 5 ministries, the national statistics agency, the national administrative agency, the national council for women, 4 employers' representatives, and 4 trade union representatives. Increase in the minimum wage is jointly decided by the government, employer and trade union representatives through the National Wages Council which combines all these representatives.

Minimum annual increase in wages must be at least 7% of the salary that is used to calculate social insurance.

The Labour Law establishes a system of labour inspection and imposes fines (100-500 pounds) for non-compliance with the minimum wage provisions. The fine multiplies with the number of workers in whose respect the crime occurred, and it is doubled in case of recurrence.

Source: §27 of the Constitution of the Egyptian Arab Republic 2014; §34 & 247 of the Labour Law 2003

Regular Pay

In accordance with section 38 of the Labour Law 2003, wage is defined as all that the worker obtains in return for his work, whether fixed or variable, in case or in kind. The following, in particular, are considered a wage: the commission within the context of Labour relation; anything that a worker may be paid in return for what he produces, sells, or collects all along his charge of the work for which this percentage is prescribed; the increments whatever the reason for becoming payable, or their kind; the in kind benefits the employer shall pay, without being necessitated by work exigencies; any bonus given to the worker in addition to his wage, and all that is paid to him due to his honesty or efficiency, once these bonuses are prescribed in the individual or collective Labour contracts or in the work articles of association, as well as that which has become customarily payable once fulfilling the qualities of generality, continuance and constancy; all that is given to the worker in exchange for specific conditions or risks the worker is liable to in performing his work; the worker’s profit share; tip that the worker obtains if it becomes customarily payable and has rules allowing for its determination. The percentage the customers pay in return forth service in tourist establishments is considered a tip.

Employers are obliged to pay the worker his/her wages in legal tender at the place of work on the working day. The Labour Law regulates the payment of wages to all classes of workers. According to this law, wages can be calculated on hourly, daily, weekly or monthly basis.

An employer is under the obligation to pay the workers’ wages:

- at least once a month when the worker disappointed on monthly pay;

- once a week (commensurate with the work done during the week), if the work is paid per production but the production task takes more than 2 weeks. The balance amount is paid during the week following the completion of task; and

- once at most every week, if worker does not fall in the above two categories.

Employers are prohibited from transferring a monthly paid worker to the category of day labourers or the workers appointed with a weekly wage, or paid per hour or per production, except with the written approval of the worker on transferring him. The worker in such case has all the rights he acquired during the period he was on monthly pay.

Employer may deduct wage of a worker for payment of the money he/she has loaned, without charging any interest. The amount of deduction must not be more than 10% of the worker's wage. The employer must not compel the worker to buy food, goods, or services from specific stores, or buy goods produced or services provided by the employer. An employer should provide pay slips comprising of items of the wage to all workers.

Source: §34-46 of the Labour Law 2003

Regulations on Work and Wages

  • قانون العمل 2003 Labour Law, 2003/
  • دستور جمهورية مصر العربية 2014 / Constitution of the Egyptian Arab Republic, 2014

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