Parl. Labor Committee ratifies unemployment allowances draft law

CAIRO – 11 July 2019: The Labor Committee of the House of Representatives has ratified Egypt’s new social insurance and pensions draft law, submitted by the government.

The new draft law includes the issuance of unemployment allowances, in accordance with certain procedures and rules.

Unemployment benefits are generally given only to those registering as unemployed, and often on conditions ensuring that they seek work and do not currently have a job, and are validated as being laid off and not fired.

These benefits, or doles, according to the law, will be provided to the unemployed under certain conditions, including that the unemployed should be below 60 years old.

Citizens who work in temporary jobs including construction workers, seasonal workers, stevedores, dockers, land transport workers, farmers and fishermen will be excluded from the dole system.

Unemployment allowances are being determined based on specific percentages of the last contributions fee; 75% for the first four weeks, 65% for the second four weeks, and 55% for the fourth four weeks.

The law stipulates that the beneficiary shall be a participant in social insurance system for at least one year, and shall benefit from it for a maximum of 28 weeks depending on the period of his insurance contribution.

It also says the right to receive a dole shall be waived if the unemployed person refuses to accept a job that the Labor Office sees appropriate especially if the new work equals at least 75% of the unemployed’s dole.

Also, unemployment insurance shall be funded by the share that the employer commits at the rate of 1% of the insured's wages to the unemployed monthly.

If a dispute arises over the reason for termination of service, the unemployment benefit shall be paid at 40% of the last wage for four weeks, during which the competent labor relations office shall express its opinion on the dispute, in accordance with the procedures specified by a decision of the Chairman of the Commission in agreement with the Ministry of Manpower.