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Amendment of the Social Security La

Amendment of the Social Security Law
Presidential Decree No. 117 of 2015[1] amended some provisions of the Social Insurance Law No. 79 of 1975.[2] The amendments are in compliance with the Egyptian government’s civil employment policies which were lately represented in the promulgation of the new Civil Service Law No. 18 of 2015.[3]
Unifying Basic Wage
The amendment unified the definition of basic wage stipulated in Article 5 item (I/1) of the Social Insurance Law to conform to the definition stipulated in the Civil Service Law with regards to special increases. The basic wage in accordance to the new Article 5 item (I/1) has two definitions. The first definition is specific to insured state employees, and considers basic wage for the purpose of social insurance to be the same wage provided in the Civil Service Law and related regulations, in addition to the annual special increases. This, however, excludes the components considered part of the variable wage, such as benefits and allowances. As mentioned, this is applicable in case of beneficiaries being civil servants and/or employees in public authorities and economic units regardless of their employment relationship as contractual or seasonal. The second definition considers basic wage as that specified in the employment contract, in addition to any special increases, but to the exclusion of all components that are part of the variable wage. This definition applies to employees and workers subject to the Labor Law No. 12 of 2003[4] as well as house services employees, as determined by the Insurance Minister’s Decree. The new amendment determines the basic wage to be utilized in future calculations through dividing the beneficiaries subject to the new Civil Service Law into two groups. The first group includes beneficiaries in service on 30/06/2015 and their wage by then would be considered the basic wage. The second group covers beneficiaries who were employed on later dates. In this situation, the basic wage would be decided as per a table issued by the Minister of Insurance Decree in coordination with the Minister of Finance. The amendment of the second paragraph of Article 104 excluded the divorced woman from the list of pension beneficiaries limiting this entitlement upon certain conditions to widows, husbands, sons, daughters, parents and siblings. Article 105 eased the conditions of widow entitlement to pension benefits on the marriage’s official registration or establishment by a court ruling. However, the Minister of Insurance is authorized to determine additional documents verifying marriage in case the aforementioned conditions proved inapplicable. The legislator also deemed the beneficiary husband as the widow. Article 2 of the amending Law obliged the government to cover the excess insurance rights resulting from the addition of special as well as annual increases that have been added to the basic subscription in accordance with the above amendments. In addition, the Minister of Insurance shall issue a decree with the rules of cost determination as well as its means of payment to the Social Insurance National Authority.
Conclusion
The amendment assisted in bringing Egyptian legislations in conformity with each other. Moreover, it eased the conditions imposed on widows to get pension benefits.   [1] Presidential Decree-Law No. 117/2015 amending the Social Security Law No. 79/1975, Official Gazette, Issue No. 47 (bis) (d), 22 November 2015. [2] Law No. 79/1975 issuing the Social security Law, Official Gazette, Issue No. 35 (bis), 28 August 1975. [3] Presidential Decree-Law No. 18/2015 issuing the Civil Service Law, Official Gazette, Issue No. 11 (bis), 12 March 2015. [4] Law No. 12/2003 issuing the Labor Law, Official Gazette, Issue No. 14 (bis), 7 April 2003.
Presidential Decree No. 117 of 2015[1] amended some provisions of the Social Insurance Law No. 79 of 1975.[2] The amendments are in compliance with the Egyptian government’s civil employment policies which were lately represented in the promulgation of the new Civil Service Law No. 18 of 2015.[3]
Unifying Basic Wage
The amendment unified the definition of basic wage stipulated in Article 5 item (I/1) of the Social Insurance Law to conform to the definition stipulated in the Civil Service Law with regards to special increases. The basic wage in accordance to the new Article 5 item (I/1) has two definitions. The first definition is specific to insured state employees, and considers basic wage for the purpose of social insurance to be the same wage provided in the Civil Service Law and related regulations, in addition to the annual special increases. This, however, excludes the components considered part of the variable wage, such as benefits and allowances. As mentioned, this is applicable in case of beneficiaries being civil servants and/or employees in public authorities and economic units regardless of their employment relationship as contractual or seasonal. The second definition considers basic wage as that specified in the employment contract, in addition to any special increases, but to the exclusion of all components that are part of the variable wage. This definition applies to employees and workers subject to the Labor Law No. 12 of 2003[4] as well as house services employees, as determined by the Insurance Minister’s Decree. The new amendment determines the basic wage to be utilized in future calculations through dividing the beneficiaries subject to the new Civil Service Law into two groups. The first group includes beneficiaries in service on 30/06/2015 and their wage by then would be considered the basic wage. The second group covers beneficiaries who were employed on later dates. In this situation, the basic wage would be decided as per a table issued by the Minister of Insurance Decree in coordination with the Minister of Finance. The amendment of the second paragraph of Article 104 excluded the divorced woman from the list of pension beneficiaries limiting this entitlement upon certain conditions to widows, husbands, sons, daughters, parents and siblings. Article 105 eased the conditions of widow entitlement to pension benefits on the marriage’s official registration or establishment by a court ruling. However, the Minister of Insurance is authorized to determine additional documents verifying marriage in case the aforementioned conditions proved inapplicable. The legislator also deemed the beneficiary husband as the widow. Article 2 of the amending Law obliged the government to cover the excess insurance rights resulting from the addition of special as well as annual increases that have been added to the basic subscription in accordance with the above amendments. In addition, the Minister of Insurance shall issue a decree with the rules of cost determination as well as its means of payment to the Social Insurance National Authority.
Conclusion
The amendment assisted in bringing Egyptian legislations in conformity with each other. Moreover, it eased the conditions imposed on widows to get pension benefits.   [1] Presidential Decree-Law No. 117/2015 amending the Social Security Law No. 79/1975, Official Gazette, Issue No. 47 (bis) (d), 22 November 2015. [2] Law No. 79/1975 issuing the Social security Law, Official Gazette, Issue No. 35 (bis), 28 August 1975. [3] Presidential Decree-Law No. 18/2015 issuing the Civil Service Law, Official Gazette, Issue No. 11 (bis), 12 March 2015. [4] Law No. 12/2003 issuing the Labor Law, Official Gazette, Issue No. 14 (bis), 7 April 2003.