New Minimum Wage Standards

• Private Sector: The new monthly minimum wage for private sector employees is set at EGP 3,500 (Egyptian pounds). This is equivalent to USD 73.02/ EUR 67.36.

• Public Sector: For public sector employees, the minimum wage has been raised to EGP 4,000 monthly. This is equivalent to USD 83.45/ EUR 76.98.

Payroll Frequency Requirements

Under the Labour Law of Egypt, wages must be paid at regular intervals. The law stipulates different payment frequencies based on whether employees are paid monthly or non-monthly:

• Monthly Paid Employees: Employees who receive a monthly salary must be paid at least once a month.

• Non-Monthly Paid Employees: Employees who receive a non-monthly salary must be paid at least once every week.

Payment Logistics

The Labour Law mandates that wages must be paid:

• On a Working Day: Payments should be made on a designated working day.

• During Working Hours: Payments should occur during working hours.

• At the Place of Work: Unless the employment contract specifies otherwise, wages should be distributed at the workplace.

These requirements are designed to facilitate a smooth payroll process.

Implications for employers and employees

Employers must update their payroll systems to align with these new regulations. This includes ensuring that payment schedules meet the legal requirements and adjusting payroll calculations to reflect the new minimum wage standards. Non-compliance could result in legal repercussions.

Employers should also communicate these changes clearly to their employees to maintain transparency and trust within the organisation. Providing employees with detailed payslips that outline their earnings and deductions can further enhance clarity and satisfaction.

For both employers and employees, staying informed about these changes is crucial for navigating the evolving landscape of labour laws in Egypt.