Minimum Wage
Following Libya’s Constitution of 2011, the state must ensure equal opportunity and work to ensure that every person has a decent quality of life, the right to employment, education, medical care, and social security. In addition, individual and private property must be protected by the state. It must also ensure that national wealth is distributed fairly among residents and the many cities and regions of the country.
Under the 2010 Law, the General People’s Congress (GPC) may issue a resolution to establish a “Consultative Council on Wages” to propose a general wage policy and define its functions. The Council is composed of representatives of workers and employers. The Council is headed by a government representative, nominated by the competent authority. The Council shall base its suggestions on setting and revising wages on customs, fairness, and overall social and economic situation to enhance production and meet workers' basic needs. On presentation of a request from the concerned authority and the suggestion of the related consultant council, the GPC will issue decisions establishing minimum salaries or amending them.
Employees who have been nominated by GPC based on a presentation by the relevant authority have the right to examine workplaces whether these are compliant with the requirements of law. The approved personnel for inspection have the authority of judicial control officers over implementing this law, executive regulations, and judgments, and they shall carry identification cards demonstrating this authority. A non-compliant enterprise shall be punished with a fine ranging between 200-500 dinars.
Source: §8 of Libya’s Constitution of 2011; §19-20 and 121 of Labour Relations Law, 2010
Regular Pay
The 2010 Labour Relations Law defines wages as; “what is given to the worker for his effort according to a work contract, whether a share or revenue from the production or service or a monetary sum, to which bonuses, allowances, and other benefits are due according to the legislation in force are added”. While there is no explicit provision on regular and timely payment of wages, in cases where the work remuneration is a share of the production or the revenue of the service, the 2010 law requires employers to grant the worker an agreed-upon cash remuneration every month or part of the month to cover the daily expenses of worker and their family. Such remuneration is calculated as production expenses and deducted from the income to be distributed at the end of the year or upon the completion of the production process, similarly to other expenses. The 2010 law refers to various kinds of deductions. For example, it specifies that alimony payments cannot exceed 25% of the remuneration. Similarly, the loan payments cannot exceed 25% of the worker’s monthly wage. Furthermore, in case of warnings or sanctions, wage deductions may not exceed three days’ earnings.
Employers are required to maintain a record of remuneration paid to a worker along with the personal and work-related details of a worker, including but not limited to the worker’s name, designation, personal identity number, residential address, copy of the employment contract, other documents, leave days, bonuses, duties, and penalties.
Source: §5, 47, 50, and 118 of the Labour Relations Law, 2010
