By Mahmoud Salah El-Din
The government has instituted a 15% salary raise for the employees of the private sector, non-governmental organisations, and private institutions as of July 1. The raise followed issuance of law 82 of 2012.
Refaat Hassan, Minister of Manpower, said the award was decided following the annual bonus negotiation meeting, held on 22nd of July. The decision was reached after the initiative was taken by representatives of the business community and accepted by representatives of employees.
He added that the raise is tax-free, independent from of the employees’ base pay. As of 1st of July 2017 the raise will be included in salaries of the employees even if the total sum exceeds the job grade’s cap.
He explained that the raise will not prevent employees from receiving periodical, supplementary, incentivising or promotional bonuses, according to regulating laws and policies.
The bonus, it was decided, won’t be subject to tax or fees on July 1, with 10% of the base pay as a maximum limit. The initiative of business owners’ representatives in this agreement is considered crucial. The agreement is guided the Minister of Finance’s resolution number 357 of 2012 which pertains to awarding monthly bonuses, according to law 82 of 2012, unless the internal policies of the organisation states otherwise.
The Minister said also that executives of Ministry of Manpower and Migration in the governorates were notified to commence the implementation of the resolution.
