Par­lia­ment ap­proves So­cial Al­lowance Law af­ter dis­putes over its ef­fect on labour wages


The Daily News Egypt - - Front Page -

The Egyp­tian par­lia­ment ap­proved in its gen­eral as­sem­bly on Wed­nes­day the spe­cial bonus law drafted by the gov­ern­ment for work­ers and em­ploy­ees who are not work­ing un­der the Civil Ser­vice Law.

On Tues­day, Ab­dul Aal post­poned vot­ing on the law un­til reach­ing a quo­rum of two-thirds of mem­bers of par­lia­ment (MPs), in ac­cor­dance with the law. If the quo­rum was twice not reached, the law would be­come in­valid for any fur­ther vot­ing at­tempts.

There are around 6.5 mil­lion work­ers in Egypt work­ing for gov­ern­men­tal in­sti­tu­tions, with only 3.5 mil­lion work­ing in ac­cor­dance to the Civil Ser­vice Law. Mean­while, the re­main­ing will work in ac­cor­dance with the bonus law.

Tues­day’s ses­sion wit­nessed di­vi­sion among MPs re­gard­ing Ar­ti­cle 5 of the law, as some sug­gested its can­cel­la­tion.

Egypt’s Sup­port Coali­tion in par­lia­ment urged for the ar­ti­cle to re­main—as sug­gested in the gov­ern­ment draft—with the im­por­tance of retroac­tive pay­ment of the al­lowance and the as­sur­ing that no em­ployee or worker shall be af­fected by the ap­pli­ca­tion of the ar­ti­cle and will re­ceive his full fi­nan­cial rights.

The ar­ti­cle stip­u­lates pay­ing 10% as so­cial al­lowance to the ba­sic salary, and this will be ap­plied in June. This im­plies that the value of the al­lowance will be con­stant on cer­tain amounts rang­ing from EGP 65 to EGP 120—not less or more, even if the salary in­creased. The law will not im­pact the state bud­get but will not pro­vide fair al­lowances.

MPs com­mented that this will im­pact ad­van­tages and in­cen­tives of the work­ers. Haitham El-Hariri com­mented that the ar­ti­cle will pro­vide un­fair al­lowances and that he will sub­mit a new law.

Mo­hamed Maeet, the deputy of fi­nance minister, keep­ing Ar­ti­cle 5 will re­duce the prob­lems on the state bud­get, as its can­cel­la­tion will cost the min­istry around EGP 18bn. Labour activist Wael Taw­fik told Daily News Egypt that the gov­ern­ment wants to save its bud­get even if the law will not grant fair al­lowances.

Only five mem­bers re­jected the law, amid the ap­proval from the ma­jor­ity

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