Observation (CEACR) - adopted 2011, published 101st ILC session (2012)

Protection of Wages Convention, 1949 (No. 95) - Egypt (Ratification: 1960)

Article 4 of the Convention. Partial payment of wages in kind. The Committee has been drawing the Government’s attention for a number of years to the need to take measures to ensure that allowances in kind, when authorized, are appropriate for the workers’ personal use and benefit and that they are fairly and reasonably valued, as prescribed by this Article of the Convention. In this respect, the Committee has observed that section 32(d) of the Labour Code of 2003, which reproduces section 30(d) of the previous Labour Code, fails to give full effect to the requirements of Article 4(2) of the Convention. The Committee recalls that the obligation to ensure that allowances in kind are appropriate for the worker’s personal use and benefit may be satisfied by exhaustively enumerating the permissible payments in kind, for instance, board and lodging, clothing, use of land or free medical treatment. It also recalls that the obligation to attribute a fair and reasonable value to payments in kind may be met in different ways such as the prohibition to exceed cost price or the ordinary market value, or the price as may be fixed by public authorities. The Committee accordingly hopes that the Government will take the necessary measures in order to fully implement in law and in practice the requirements of this Article of the Convention.

Article 6. Freedom of workers to dispose of their wages. The Committee notes the Government’s renewed reference to section 42 of the Labour Code, which reproduces section 39 of the previous Labour Code, and which prohibits employers from obliging workers to buy food, goods, or services from specific stores or buy goods produced or services provided by them. The Committee is obliged to reiterate that provisions regulating the use of company stores do not cover all the possible ways in which workers can be limited in their freedom to dispose of their wages (one example would be through exerting pressure on workers to make contributions to certain funds). It is therefore necessary for implementing legislation to contain an express provision generally prohibiting employers from restricting the freedom of workers to dispose of their wages. The Committee accordingly hopes that the Government will consider at the next suitable occasion the possibility of introducing a specific provision laying down a general prohibition upon employers from limiting the freedom of workers to dispose of their wages in any form and manner, directly or indirectly, and not simply in respect of the use of company stores.