CAIRO: One hundred and forty-seven companies Saturday sent their employee payroll statements to the Central Auditing Organization (CAO) in order to start applying the new maximum wage rate, Al-Masry Al-Youm reported.
The CAO is set to restructure the wage system for public companies so as to adhere to the previously approved maximum wage rate by the Cabinet in late June, which set a cap of 42,000 EGP ( $5,870) per month.
Advisor Safwan Al-Sollamy of the National Company for Construction and Development (NCCD) said that the NCCD will apply the new cap for its July salaries.
Rashad Abdo, head of the Egyptian Center for Economic Studies, told The Cairo Post that “the problem is not in defining the maximum wage rate but defining the annual total income for the cadres, as most public company officials take portions of profits and large allowances,” he said.
Besides applying the maximum wage rate, the government should finish applying the minimum wage rates so as to finish the large disparity in income, achieving social equity along with finishing the labor strikes, he added.
Sharif Sami, head of the financial department at Banque Misr told Al-Masry Al-Youm, that the forthcoming period will witness a restructuring of the wage system along with the application of the maximum wage rate.
Criticizing the maximum wage rate, Sami said that applying it to Banque Misr staff would allow for the bank to pay only six top officials with an allocated budget of 10 million EGP, which could cause leadership to leave. “The mass departure of leadership may cause losses worth billions of pounds,” he said.