{"id":542513,"date":"2022-01-02T04:09:31","date_gmt":"2022-01-02T04:09:31","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2022\/01\/02\/this-morning-the-inaugural-enterpriseam-of-2022-private-sector-minimum-wage-egx-capital-gains-tax-in-effect-more-schools-close-due-to-bad-weather\/"},"modified":"2022-01-02T04:09:31","modified_gmt":"2022-01-02T04:09:31","slug":"this-morning-the-inaugural-enterpriseam-of-2022-private-sector-minimum-wage-egx-capital-gains-tax-in-effect-more-schools-close-due-to-bad-weather","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2022\/01\/02\/this-morning-the-inaugural-enterpriseam-of-2022-private-sector-minimum-wage-egx-capital-gains-tax-in-effect-more-schools-close-due-to-bad-weather\/","title":{"rendered":"THIS MORNING: The inaugural EnterpriseAM of 2022; Private sector minimum wage, EGX capital gains tax in effect; More schools close due to bad weather;"},"content":{"rendered":"

Good morning, wonderful people, and welcome to our first EnterpriseAM of 2022. <\/strong>We hope you had a fantastic New Year\u2019s weekend and are looking forward to the new year as much as we are.<\/p>\n

PSA #1- We\u2019re waiting for word from on high about whether or not this Thursday, 6 <\/strong>January, will be a <\/strong>national holiday<\/strong> in celebration of Coptic Christmas, which falls on Friday. We expect it will be and hopefully we\u2019ll soon see notes from cabinet \/ the central bank \/ the stock market in our inboxes.<\/p>\n

PSA #2- Schools will be closed in the Red Sea cities of Sharm El Sheikh, Hurghada and <\/strong>Safaga today as well as in Assiut<\/strong>, Al Masry Al Youm<\/a> reports. The torrential rain, thunderstorms, strong winds, hail and even snow seen in some parts of the country over the weekend are expected to ease today, with conditions stabilizing nationwide by Monday, according to the Egyptian Meteorological Authority (pdf)<\/a>. School was out in five governorates yesterday, including Alexandria. Three people were killed and 13 injured in weather-related accidents on Friday, Ahram Gate<\/a> reported, citing a Health Ministry\u2019s spokesperson.<\/p>\n

There\u2019s a chance of a few sprinkles this afternoon in Cairo<\/strong> with a daytime high of 19°C, falling to 11°C overnight. Expect typical winter weather for the rest of the week, with highs in the 18-19°C band through next Sunday and the lows falling to single digits overnight.<\/p>\n

<\/a> PS<\/strong>A #3- You only have a few days left to take our annual reader poll \u2014 and join us for <\/strong>breakfast<\/strong>. <\/strong>Every year, we ask our readers to weigh in on what you expect for the year ahead in our Enterprise Reader Poll<\/a>. Take a few minutes to give us your take on the outlook for your business and industry, whether you\u2019re planning fresh investments and new hires, and how your business fared in the year past. We\u2019ll share the results with the entire community next week to help shape your view of the year \u2014 and will invite eight of you to break bread with us. Another dozen of you who complete the poll will also get special Enterprise mugs to enjoy your morning beverage of choice.<\/p>\n

PSA #4- Did you get jabbed with Sinopharm or Sinovac? Mabrouk \u2014<\/strong>Canada now recognizes you as fully vaccinated<\/a><\/strong> if you have had two jabs at least 14 days before travel. The Great White North joins the UK and US in recognizing the vaccines.<\/p>\n

WHAT\u2019S HAPPENING TODAY-<\/strong><\/p>\n

<\/a> Employees at private sector companies will now be paid a minimum wage of EGP 2.4k a <\/strong>month<\/strong> after a new rule came into effect on 1 January.<\/p>\n

Well, some of them will:<\/strong> Thousands of companies have been given a six-week grace period<\/a> from paying the minimum wage after requesting exemption on the basis that they cannot afford to up salary expenditure. Firms that have applied for exemption will not have to comply with the new wage requirements until at least mid-February, while the government takes a decision on whether to exempt them.<\/p>\n

SMART POLICY- No company is getting a permanent exemption from paying the new <\/strong>minimum wage<\/strong>, Magdi El Badawy, member of the National Council for Wages (NCW), said yesterday (watch, runtime: 8:00<\/a>). Temporary exemptions lasting three months will be given to firms that cannot afford to meet the requirements, which will be reviewed by the NCW at the end of the period, he said.<\/p>\n

Also now in effect: the EGX capital gains tax.<\/strong> As of today\u2019s trading session, resident investors will face a 10% capital gains tax<\/a> on EGX transactions. The tax will be imposed on net portfolio earnings at the end of the tax year after deducting brokerage fees. Foreign investors are not subject to the tax.<\/p>\n

The EGX30 cl<\/strong>osed up 10.2% YTD as of the final trading day of the year.<\/strong> The EGX lagged our regional competitors in 20201: The Nasdaq Dubai was up 21.4% at the end of the year; the ADX closed up 26.1%; and Saudi\u2019s Tadawul climbed 29.8%.<\/p>\n

THE BIG STORY ABROAD (other than the fact that <\/strong>it\u2019s now 2022<\/a><\/strong>)<\/strong> is a tie between two record-breakers: The omicron variant, which led Australia<\/a> and New York<\/a> on Saturday to set fresh records for new daily covid cases. The silver lining: Research out of South Africa suggests the variant is significantly less deadly<\/a> than was the delta version of the virus.<\/p>\n

ALSO-<\/strong> Stock markets had a bumper year<\/a> in 2021.<\/p>\n

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It\u2019s the start of a new month.<\/strong> The key news triggers to keep your eye on:<\/strong><\/p>\n