CAIRO: The presidency has instructed the Cabinet to universally apply the minimum wage for all state employees, Prime Minister Ibrahim Mahlab said Monday.
The budget for fiscal year 2014-15 has funds allocated to apply the minimum wage of 1,200 EGP ($167) per month, he said, adding that it would be the “first step toward achieving social equality,” Mahlab announced in press conference, according to the Cabinet homepage.
“Besides applying the minimum wage rates, the presidency also obliged the Ministry of Supply to provide subsidized products at the wholesales complexes,” Mahlab added.
The former Cabinet, headed by Hazem al-Beblawy, approved a draft law stipulating that a maximum wage should not exceed 42,000 EGP per month meanwhile the draft had defined the minimum wage rate at 1,200 EGP, but the two draft laws have not yet entered into force.
Minister of Finance Hani Kadry Demian said in the Monday press conference that applying the minimum wage, paired with subsidized products would boost the economy and help avoid widening the budget deficit gap.
Kadry added that 34 billion EGP would be allocated in the next fiscal year budget to pay for subsidies, which would benefit 67 million people.