THIS YEAR, the debate over what constitutes a suitable minimum wage raged on, but so far remains inconclusive. An announcement by the National Council for Wages that the minimum wage would be set at LE400 triggered widespread dissatisfaction. Trade unions and the general public saw that with escalating prices, LE400 can hardly provide for a decent living. The council's decision was made following an Administrative Court ruling that the government should end tensions over the minimum wage by modifying the figure. The court, however, did not specify a sum. The lawsuit had originally been filed by the Egyptian Centre for Social and Economic Rights, requesting the minimum wage be set at LE1,200. The government has added that the LE400 would only apply to entry-level workers with no prior experience or training, and that the wage will be reviewed every three years. The government's argument in adopting the LE400 figure is that a higher minimum wage would trigger inflation and cause prices to rise. It said that had the previous minimum wage of LE35 been subject to regular increases taking inflation rates into account, the minimum would have now reached around LE280. But the LE400 level falls short not only of the LE1,200 that the public is calling for, but also below the minimum wage recommended by an Information and Decision Support Centre (IDSC) study. The IDSC recommended the minimum wage be set at LE656. That recommendation takes into consideration that there is one bread earner for every four individuals, and as such it multiplies the LE164 poverty line barrier by four. The government said its proposed minimum wage applies only to the private sector. As things currently stand, no one in the public sector is given less than LE400 a month after bonuses and other remunerations are paid.
