{"id":555375,"date":"2021-11-11T04:11:21","date_gmt":"2021-11-11T04:11:21","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2021\/11\/11\/more-sectors-angling-for-exemption-from-private-sector-min-wage\/"},"modified":"2021-11-11T04:11:21","modified_gmt":"2021-11-11T04:11:21","slug":"more-sectors-angling-for-exemption-from-private-sector-min-wage","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2021\/11\/11\/more-sectors-angling-for-exemption-from-private-sector-min-wage\/","title":{"rendered":"More sectors angling for exemption from private sector min wage"},"content":{"rendered":"

<\/a> Business leaders want to exempt companies in eight sectors from complying with <\/strong><\/sup>the <\/strong>new private<\/a><\/strong>sector minimum wage<\/a><\/strong>, which will take effect at the beginning of 2022. The Federation of Egyptian Chambers of Commerce (Fedcoc) has handed a formal request to Planning Minister Hala El Said requesting that businesses in the healthcare, building materials, construction, pharma, education, security services, and workers\u2019 expatriation services be given a pass from paying the new wage, it said in a statement<\/a> yesterday. From 1 January all private sector companies will be required to pay their employees a minimum wage of EGP 2.4k per month.<\/p>\n

The reasoning:<\/strong> The federation cites these sectors\u2019 high employee count and the nature of their employment, high production costs in some instances, and the negative impacts of covid-19 on business. Employers in these sectors are already paying wages that average 25% of production costs, higher than the global standard of 15-19%, according to the letter. Applying a minimum wage would raise the figure to some 30%, which could drive some of them out of the market. Many companies in those industries also use seasonal labor, youth workers that often need costly training, and a large number of blue collar workers.<\/p>\n

Other proposals target partial and temporary exemptions: <\/strong>The federation alternatively suggested excluding 40% of the blue collar support jobs that don\u2019t contribute directly to production lines from the minimum wage and excluding new hires for their first 12 months of employment. The commerce federation is also calling for a clearer definition of the minimum wage to differentiate between fixed and variable wages and factor in other non-cash benefits and other bonuses workers sometimes receive.<\/p>\n

There are other sectors that already asked for exemptions:<\/strong> Notably, the Egyptian Tourism Federation argues that companies it represents have yet to fully recover from their covid-19 setback. The industry lobby group fielded a similar set of demands of the commerce federation to the National Council for Wages last month<\/a>.<\/p>\n

Background: <\/strong>Employees of private-sector companies will for the first time receive a minimum wage of at least EGP 2.4k starting January 2022 when the minimum wage comes into effect. The decision means higher labor costs and larger contributions to the nation\u2019s Social Ins. Authority when it goes into effect. Companies have until the end of this month to submit a request to the National Wages Council if they claim they cannot afford the wage hike.<\/p>\n","protected":false},"excerpt":{"rendered":"

Business leaders want to exempt companies in eight sectors from complying with the new privatesector minimum wage, which will take effect at the beginning of 2022. The Federation of Egyptian Chambers of Commerce (Fedcoc) has handed a formal request to Planning Minister Hala El Said requesting that businesses in the healthcare, building materials, construction, pharma, […]<\/p>\n","protected":false},"author":1,"featured_media":555376,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8614],"tags":[72,3222,727,235,71,678,100,871],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-555375","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-regulation-watch","tag-enterpriseam","tag-federation-of-egyptian-chambers-of-commerce","tag-hala-el-said","tag-labor","tag-minimum-wage","tag-planning-ministry","tag-policy","tag-regulation-watch","wpautop","entry"],"acf":{"mongo_id":"ab2f1480-2a53-4e41-82db-0d0737236b44","is_powered_by":true,"story_type":"1","photo_url":"https:\/\/ent.news\/2021\/11\/415.jpg","photo_position":"above","related_issue":[555364],"teaser":"","voice_url":""},"yoast_head":"\nMore sectors angling for exemption from private sector min wage - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/egypt\/2021\/11\/11\/more-sectors-angling-for-exemption-from-private-sector-min-wage\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"More sectors angling for exemption from private sector min wage\" \/>\n<meta property=\"og:description\" content=\"Business leaders want to exempt companies in eight sectors from complying with the new privatesector minimum wage, which will take effect at the beginning of 2022. 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From 1 January 2022, companies will need to pay workers at least EGP 2.4k per month, according to\u2026","rel":"","context":"In "Policy"","block_context":{"text":"Policy","link":"https:\/\/enterpriseam.com\/egypt\/category\/policy\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2021\/6\/360.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":554154,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/12\/22\/companies-buy-themselves-time-on-minimum-wage-hikes\/","url_meta":{"origin":555375,"position":2},"title":"Companies buy themselves time on minimum wage hikes","author":"enterpriseam admin","date":"22 December 2021","format":false,"excerpt":"Thousands of companies will be given a six-week reprieve from the new private sector minimum wage requirement coming into force at the beginning of 2022 under a decision by the National Council for Wages (NCW), the Planning Ministry said in a statement yesterday. Thousands of companies had filed requests for\u2026","rel":"","context":"In "Economy"","block_context":{"text":"Economy","link":"https:\/\/enterpriseam.com\/egypt\/category\/economy\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2021\/12\/446.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":543472,"url":"https:\/\/enterpriseam.com\/egypt\/2022\/02\/02\/last-nights-talk-shows-fresh-usd-1-6-bn-arms-purchase-from-korea-more-minimum-wage-exemption-shenanigans\/","url_meta":{"origin":555375,"position":3},"title":"Last Night\u2019s Talk Shows: Fresh USD 1.6 bn arms purchase from Korea + more minimum wage exemption shenanigans","author":"enterpriseam admin","date":"2 February 2022","format":false,"excerpt":"Featuring on the airwaves last night: Egypt\u2019s USD 1.65 bn purchase of an unspecified number of K9 howitzers from South Korea captured the attention of Masaa DMC\u2019s Ramy Radwan (watch, runtime: 1:49). The agreement includes tech transfer, allowing Egypt to manufacture the weapon system locally, a military spokesperson said in\u2026","rel":"","context":"In "LAST NIGHT\u2019S TALK SHOWS"","block_context":{"text":"LAST NIGHT\u2019S TALK SHOWS","link":"https:\/\/enterpriseam.com\/egypt\/category\/last-nights-talk-shows\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":550476,"url":"https:\/\/enterpriseam.com\/egypt\/2022\/10\/30\/last-nights-talk-shows-the-govt-really-wants-to-talk-about-industry-as-the-egp-devaluation-sends-the-currency-to-record-lows-against-the-greenback\/","url_meta":{"origin":555375,"position":4},"title":"Last Night\u2019s Talk Shows: The gov\u2019t really wants to talk about industry as the EGP devaluation sends the currency to record lows against the greenback","author":"enterpriseam admin","date":"30 October 2022","format":false,"excerpt":"The economy dominated the conversation on the airwaves last night and over the weekend in the wake of the currency devaluation on Thursday and the announcement of a fresh loan agreement with the IMF. Everyone covered the 16%+ slide in the EGP, with Al Hayah Al Youm host Mostafa Sherdy\u2026","rel":"","context":"In "LAST NIGHT\u2019S TALK SHOWS"","block_context":{"text":"LAST NIGHT\u2019S TALK SHOWS","link":"https:\/\/enterpriseam.com\/egypt\/category\/last-nights-talk-shows\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":565071,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/03\/16\/a-private-bump-to-the-sector-minimum-wage-us-gaining-steam-ha-utilities-ma-and-more\/","url_meta":{"origin":555375,"position":5},"title":"A private bump to the sector minimum wage us gaining steam + HA Utilities\u2019 M&A \u2014 and more","author":"enterpriseam admin","date":"16 March 2021","format":false,"excerpt":"Picking up where we left off this morning, the story about a bump to the private-sector minimum wage seems to have legs. Al Watan quotes a source at the National Wages Council, which sets the minimum wage, as saying the body may indeed push through a hike that would bring\u2026","rel":"","context":"In "SPEED ROUND: CATCH UP QUICK"","block_context":{"text":"SPEED ROUND: CATCH UP QUICK","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round-catch-up-quick\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/555375","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/comments?post=555375"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/555375\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/issue\/555364"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media\/555376"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=555375"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=555375"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=555375"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=555375"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=555375"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}