Maximum wage in the public sector

Article 23 of the 1971 Constitution stipulates that “the national economy shall be organised in accordance with a comprehensive development plan which ensures raising the national income, fair distribution, raising the standard of living, solving the problem of unemployment, increasing work opportunities, connecting wages with production, fixing a minimum and maximum limit for wages in a manner that guarantees lessening the disparities between incomes.”

The General Budget amounted to 559 billion pounds for the year 2011-2012, including 25 billion pounds towards fixed wages of state employees, and 92 billion pounds towards variable wages including bonuses and incentives.

Proponents of the maximum wage consider it a necessary part of the implementation of article 23 of the 1971 Constitution of Egypt, later replaced by the Constitutional Declaration. They also believe it would eliminate financial and administrative corruption in the government, and establish social justice. Moreover, it would save the State Treasury much needed resources, which could be used to finance minimum wages.

On the other hand, opponents believe imposing maximum wages would cause qualified personnel to leave the public sector, lowering the standards of its performance compared to the private sector.