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Implementation of wage structure reform with the new 2011/2012 budget


Salary of lowest ranking employee will not be less than LE 708

LE 684 is total salary of the new employee joining work this year

Maximum employee salary will not exceed 36 times the minimum wage

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  Salary of lowest ranking employee will not be less than LE 708 LE 684 is total salary of the new employee joining work this year Maximum employee salary will not exceed 36 times the minimum wage Implementing the government policy of reforming and restructuring the wage system in Egypt, for which LE nine billion has been allocated in the state budget for the first phase, the Ministry of Finance has started to increase the incentives of the employees of the administrative system of the state to 200%. Accordingly, the lowest ranking employee in the administrative system of the state will obtain no less than LE 708—total salary of the employee joining the work force at the sixth degree before the first of July 2011, compared to LE 444 in the previous budget, a hike of 59%. The increase results from augmenting the incentive in the new budget to 200% of the basic salary. The Ministry clarified that the increase of the incentive also considers the graduation of seniority. For example, an employee of the sixth degree who joined the workforce in July 2009 will enjoy a rise of salary to LE 722.9 as compared to the previous LE 457.1, which is an increase of 58%. The salary increases will apply to the various ranking jobs at different rates with the purpose of bridging the gap among them in the new budget. This will be to the benefit of 1.9 million employees. As for the new employees who will join the administrative system of the state at the sixth degree rank this year, the total salary will be LE 684 as compared to LE 422.4, i.e., going up 62% compared to the previous budget. Furthermore, a maximum wage has been set for employees’ salaries. This stipulates that the highest salary shall not exceed 36 times the minimum wage. In addition, the system sets a maximum of incentives obtained by employees in any government agency under any name. These measures are the first phase of the radical reform of the wages policies which will be completed within five years. Lowest ranking degree (sixth degree) Date of Appointment Previous total salary Total salary after the new raise Rate of increase in the total salary 1 July 2006 513.3 785.7 53% 1 July 2007 497.4 757.6 54% 1 July 2008 468.5 736.5 57% 1 July 2009 457.1 722.9 58% 1 July 2010 444.4 708.1 59% New Employees in 2011 422.4 683.9 62%

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Implementation of wage structure reform with the new 2011/2012 budget