National Council for Wages study restructuring employees’ wages
Minister of Planning Ashraf al-Araby - YOUM7/Sami Waheeb

CAIRO: The National Council for Wages is studying restructuring the wages of government employees, especially bonuses and incentives, and separating bonuses from the main salary, a governmental source told Youm7 Tuesday.

The source told Youm7 that the restructure will not include the wages sections of the budget of the next fiscal year 2014/2015.

The wages and workers’ compensations from the expenses of next fiscal year’s budget reached 208 billion EGP in comparison to the current year 2013/2014 that reached 184.5 billion EGP.

The amount of the allowances, bonuses, incentives and cash benefits during the past fiscal year 2012/2013 reached 90.3 billion EGP, the source said, adding that the government is concerned with restructuring the subsidy of energy and holding tax adjustment. But they will not start restructuring wages now until they finish the studies they are holding on this issue.

A source at the National Council for Wages told Youm7 that in the framework of restructuring, they are counting the number of the consultants working at the administrative system. They are collecting contracts that were signed by a contracting system through the Executive Board of the United Nations Development Program.

He said that it is important to restructure, adding that if the current state continued it will double the wages amount and cause problems.

After the January 25 Revolution in 2011, Egypt’s economic situation deteriorated which prompted the Egyptian government to request the IMF loan to help revive its economy. Egypt and the IMF are still negotiating and the loan is contingent upon the country’s political stability.

In its World Economic Outlook issued on April 8, IMF said Egypt has had financial aid from the Gulf States.

Since the decision of applying the minimum wage was issued in Dec. 31, 2013, several sectors in critical industries and professions conducted strikes to apply the law throughout Egypt.

Among the most vital of these is that of the Public Transportation Authority, which has caused a crisis in the streets, preventing many people from being able to reach their location of employment.

The Supreme Committee of the Doctors’ Syndicate announced that they will strike and in an official statement, they declared there will be a partial strike in public hospitals to protest the issuance of the new incentives law in place of the previous law that stipulated salary levels for the different medical professions.

Nurses and employees in Nasser Institute Hospital began a strike demanding the minimum wage and the cleaning workers in North Giza and veterinarians are on their second day of striking.

Since February, the National Council for Wages, headed by the Minister of Planning Ashraf al-Araby, held meetings to discuss debates about minimum wage in the private sector between worker representatives and businessmen. But these meetings stopped during the current period.

Additionally reporting by Mona Diaa.

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