Thursday 10 November 2022
I wrote – Dina Khaled:
The National Organization for Social Insurance raised the minimum insurance contribution wage to 1,700 pounds, and the maximum insurance contribution wage increased to 10,900 pounds instead of 9,400 pounds, as of January 1, 2023.
With the implementation of this decision, the minimum pension for the terminated service person, as of January 2023, will be 1,700 pounds, while the maximum pension will be 10,900 pounds.
The minimum pension was 1,400 pounds this year, and the maximum pension was 9,400 pounds, which means that raising the minimum and maximum contribution wages will contribute to an increase in the pension.
The minimum insurance contribution wage is the lowest amount that the company or the authority can insure the employee, and the maximum is the highest amount that the company can insure.
The decision to raise the minimum and maximum wages for insurance contributions comes in implementation of the provisions of the new Insurance and Pensions Law promulgated by Law No. 148 of 2019, which included an annual mechanism to increase these two limits for the first time in the Authority’s history, within the framework of implementing the axes of reforming the social insurance system with the aim of improving the value of the insured’s pensions when End of service and entitlement to pension.
The minimum wage for insurance contributions differs from the decision of the National Council for Wages to set the minimum wage in the private sector at 2,400 pounds.
The minimum insurance contribution wage is concerned with determining the value of insurance contributions for many categories of irregular employment, such as contracting, construction, building, quarrying, salinas, municipal bakery workers, fishermen and other groups that are difficult to determine an employer for, as well as determining their monthly income, and then the law decided their participation in the social insurance umbrella on the basis of Minimum wage for insurance contributions.