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LOWEST COMMON DENOMINATOR
I felt a bit out of the loop when I heard the government’s National Council for Wages (NCW) was planning to amend the minimum wage. Quite frankly, I wasn’t even aware that Egypt had a minimum wage. It seems the government had also forgotten, as the last time it set a minimum wage was back in 1984. At that time, it decided an Egyptian worker could “adequately” survive on LE 35 per month. That, it reckoned would cover basic food, shelter and transport.
In the quarter of a century that has elapsed since the minimum wage was set, the rate has become absurdly low, barely enough to scrounge up one fuul sandwich a day. Meanwhile, cost of living expenses have skyrocketed.
Enter the NCW. The government committee was established five years ago to determine a suitable minimum wage that takes into account the balance between salaries and prices. No doubt one of the difficulties the Council has faced is that the latter keep going up.
After prolonged studies and debate, the NCW recommended last month that the minimum monthly wage be set at LE 350, with an annual increase of 7 percent to compensate for inflation. Both numbers are to be settled within the month.
Applause has been muted. In fact, many Egyptians are calling for a higher minimum wage. Some trade unionists busy protesting last month were demanding that the minimum wage be set at LE 1,200 per month. Many of these blue-collar workers are currently earning just LE 150 to LE 250 per month. Others are seeking middle ground, with the figure LE 600 being tossed around in many circles.
One point worth considering is that the LE 350 per month minimum wage proposed by the NCW works out to about $2 per day, which is straddling the UN’s poverty line. That’s not much to aspire to if you’re working full time with a family to support. Besides, the whole point of a minimum wage is to keep workers out of poverty, not in it.
CAM MCGRATH
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