Law on maximum wages to become effective in February

The law on a maximum wage for the public sector is to become effective in the beginning of February, an official source at the Finance Ministry told Al-Masry Al-Youm. Egypt’s military rulers issued the law on 28 December.

Speaking on condition of anonymity, the source said that the law sets the maximum wage at 35 times the minimum wage for public servants, consultants and experts working on a permanent or temporary basis. The wage includes the basic salary along with any bonuses or allowances.

In July, the finance ministry said it had begun implementing a 708 Egyptian pound per month minimum wage for current government employees, up from the 444 pounds paid under last year's budget. However, six months after the announcement, the minimum wage has not yet been implemented.

The law obliges those who receive more than the set maximum to return the difference to the public treasury within 30 days after the end of the fiscal year, and punishes violators with hefty fines.

The sources added that the Finance Ministry is implementing a five-year program for reforming wages, one which will take into account inflation rates and price increases.

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