Minimum Wage
Minimum wages are governed under the Labour Code (Act No.5 of 1995), as amended up to Law No. 15 of 2008.
There is no established minimum wage for private sector workers in Yemen. Labour Code only stipulates that the minimum wage payable to a worker cannot be less than the minimum wage payable to the public sector employees (state administration). The current minimum wage for public sector workers (civil servants) is 21,000 Rials per month.
Although the Labour Code does not specify the minimum wage for private sector workers explicitly, it does give clear provisions on the minimum wage rates for trainees (apprentices), young workers and piece rate workers.
A trainee is paid his basic wage on joining a training or rehabilitation course approved by the employer irrespective of the place of training (inside the country or abroad). Employers are required to pay fair wages to the young workers which cannot be less than two-thirds of the minimum wage paid to the adults in the occupation concerned. The Council of Minister may, acting on a submission by the Labour Minister and a recommendation from Labour Council, make an order specifying the minimum wage for certain jobs and occupations in which young workers are usually employed. Similarly, the wage rate for piece-rate workers cannot be less than the daily minimum wage specified by the occupation or industry in which workers is employed.
Sources:§52, 55 &67 of Labour Code (Act No.5 of 1995, as amended up to Law No. 15 of 2008)
For updated minimum wage rates, please refer to the section on minimum wage.
Regular Pay
The Labour Code differentiates between the "basic wage” and “full wage”. Basic wage is the payment made by the employer in consideration of his work, whether in cash or in kind, which may be evaluated in currency excluding any entitlements. Full wage, on the other hand, is basic wage plus all entitlements of any kind.
Wage rates for different worker categories and jobs are determined according to the volume and type of work involved in accordance with the following guiding principles: nature of functions, duties and responsibilities; qualifications and experience required to perform the job; importance and role of work in the development and quality of production; yield of work (worker productivity);working conditions and location of workplace (hazard pay and hard area allowance); efforts made by the worker (to perform work; hard workers to be paid higher wages).
The wage payment period ranges from one week to fortnight to one month. Employers are required to pay workers their wages and other entitlements in legal tender, i.e., Yemeni Rial, on a working day and at the workplace. Workers whose wages are calculated on hourly, daily or weekly basis are paid at least once a week. For workers whose wages are determined on a fortnightly basis are paid each fortnight and must be paid within three days of each fortnight. Workers whose wages are determined on monthly basis must be remunerated every month and their wages must be paid within six days of the end of wage period.
Employers cannot restrict disposal of remuneration by workers in any way or oblige workers to purchase goods produced by them or buy goods from some specified sources. An employer cannot withhold a worker’s wages except by a judicial decision unless the worker and employer have agreed otherwise. If a worker has to pay compensation for damage or material loss he may have caused his employer by reason of shortcoming or negligence, the wage deduction cannot exceed 25% of his basic wage.
A worker must be paid his outstanding wages/dues on the day following termination of contract. If a worker leaves the service (resigns), his outstanding dues must be cleared within six days of his leaving the employment.
Pay slips are required under the law recording the details concerning the workers' wages, any deductions effected and the net wages paid. Employer is deemed to have discharged his/her obligation to pay wages once a worker has signed or finger printed the wage slip.
Sources: §54-70 of Labour Code (Act No.5 of 1995, as amended up to Law No. 15 of 2008)
