Experts’ mixed reaction to maximum wage without exception
Finance Minister Hani Kadry - YOUM7 (Archive)

CAIRO: “There should be no exception in applying the maximum wage and the government should cut one half of current advisors’ salaries at their administrations,” Minister of Finance Hani Kadry Demian said, Al-Bawaba news reported.

The Ministry of Finance is planning to reduce governmental labor forces and restructure wages by 2015 as a step to rebound and flourish the economy.

“The government should be able to apply the maximum wage without exception,” Damien said on Dream TV channel Monday evening. Workers should sacrifice financially and physically to save the national economy.

“There is no place in the government for those who do not sacrifice,” he added.

The decision to apply maximum wage rates without exception will only lead to losing a large number of skilled cadres in government authorities, economic expert Mustafa Sakr told Al-Borsa business daily Monday. It will open the door for amateurs and non-professional figures to get leading positions.

“The announcement to apply maximum wage to institutes that are characterized by high wage rate such as the National Bank of Egypt (NBE) is hypocrisy to the president and the government,” he criticized.

Former advisor at International Monetary Fund (IMF) Fakhry Al-Fekky announced the wages system is swallowing a large part of the national budget, approximately 209 billion EGP. “Applying maximum wages will provide between 10-15 billion EGP for the public fund, along with achieving social equity,” he recommended, according to Kelmety news gate.

More than 20,000 administration cadres and figures would be eligible for the maximum wage. The government could take advantage of the saved sums by applying minimum wage, executing developmental projects, and qualifying workers, he added.

NBE is obliged to apply the maximum wage on the bank cadres following the state policy, board chairman Hisham Ukasha told Al-Borsa business daily. The current phase in Egypt would need sacrifices to help flourish the economy.

The Cabinet that followed the January 25 Revolution in 2011, headed by Essam Sharaf, approved a presidential decree to apply the maximum wage in all state entities on June 26, drafted at a value of 35 times that of the minimum wage.

The following resigned Cabinet, headed by Hazem al-Beblawy, also approved a draft law stipulating that maximum wage should not exceed 42,000 EGP. The two draft laws however have excluded a number of authorities such as diplomatic, consular, commercial, petroleum, and banking cadres to avoid losing skilled professionals in government authorities and achieve social equity, Youm7 reported.

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