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Special Bonus for Civil Servants No

Special Bonus for Civil Servants Not Addressed by the Civil Service Law
On 9 September 2015, a Presidential Decree-Law stipulated a special bonus for state employees who do not fall within the scope of application of the Civil Service Law (the "Law").[1] The Law stipulated a bonus of 10% calculated on the basis of the basic monthly wage for said employees, payable starting 1 July 2015. On 16 September 2015, the Minister of Finance issued a Decision further regulating how the bonus will be calculated and paid (the "Decision").[2]
Background
This Law comes on the backdrop of the enactment of the Civil Service Law in March 2015.[3] The Civil Service Law, which was dealt with at length in the April Issue of the Egypt Legal Update, replaced the Civilian State Employees Law, which had regulated the affairs of State employees since 1978. The Law, which has been facing significant opposition since its enactment, regulates the state’s administrative apparatus and sets a new structure for wages, bonuses, management, termination of employment, as well as many other issues.
The New Law and Decision
The new Law gives a 10% bonus to civil servants (state employees) who do not fall within the scope of the Civil Service Law. To fully understand the significance of this Decree-Law, it is necessary to note that the Civil Service Law applies to “ministries, government, agencies, local government units, and public authorities; provided that there is no conflict with the laws or decrees organizing those entities”. This means that entities that have a special budget are exempted from the new Law’s domain. Furthermore, the Civil Service Law does not apply to public sector companies and public sector business companies, which is emphasized by the rulings of the Court of Cassation. After the enactment of the Civil Service Law, a controversy arose about its specific scope of application, with many public entities declaring that they are not addressed by the Law. In August 2015, a statement by the Ministry of Finance further explained the scope of application of the Civil Service Law. According to the statement, the Law does not address general authorities with a special charter (or bylaws) related to civil service. This includes for example the Suez Canal Authority, the Radio and Television Union and the Egyptian National Railways Authority. The Law will also not be applied to “special financial cadres” employees, which are state employees who managed to establish their own financial compensation regulations. These include doctors, judges, diplomats, teachers and employees from a few other sectors. According to the Law and the Decision, the bonus will be payable starting 1 July 2015 both to temporary and permanent employees. The Minister’s Decision stipulated further details about the method of payment as well as groups of state employees that will not be paid the above-mentioned bonus. This includes state employees working abroad (except if their employment is connected to their original employment in Egypt), as well as state employees in Egypt who are on a special leave. The Minister’s Decision also clarified that administrative units are required to present the Ministry of Finance with a statement detailing any additional funds they will need to be able to pay this bonus.   [1] Presidential Decree-Law No.99/2015 on the Special Bonus for Civil Servants Not Addressed by the Civil Service Law, Official Gazette, Issue No. 36 (bis) (e), 9 September 2015. [2] Minister of Finance's Decision No.442/2015 on the Regulations for the Payment of a Special Bonus for Civil Servants Not Addressed by Civil Service Law, Egyptian Gazette, Issue No. 213 (cont.), 16 September 2015. [3] Presidential Decree, Law 18/2015 issuing the Civil Service Law, Official Gazette, Issue No. 11 (cont.), 12 March 2015.
On 9 September 2015, a Presidential Decree-Law stipulated a special bonus for state employees who do not fall within the scope of application of the Civil Service Law (the "Law").[1] The Law stipulated a bonus of 10% calculated on the basis of the basic monthly wage for said employees, payable starting 1 July 2015. On 16 September 2015, the Minister of Finance issued a Decision further regulating how the bonus will be calculated and paid (the "Decision").[2]
Background
This Law comes on the backdrop of the enactment of the Civil Service Law in March 2015.[3] The Civil Service Law, which was dealt with at length in the April Issue of the Egypt Legal Update, replaced the Civilian State Employees Law, which had regulated the affairs of State employees since 1978. The Law, which has been facing significant opposition since its enactment, regulates the state’s administrative apparatus and sets a new structure for wages, bonuses, management, termination of employment, as well as many other issues.
The New Law and Decision
The new Law gives a 10% bonus to civil servants (state employees) who do not fall within the scope of the Civil Service Law. To fully understand the significance of this Decree-Law, it is necessary to note that the Civil Service Law applies to “ministries, government, agencies, local government units, and public authorities; provided that there is no conflict with the laws or decrees organizing those entities”. This means that entities that have a special budget are exempted from the new Law’s domain. Furthermore, the Civil Service Law does not apply to public sector companies and public sector business companies, which is emphasized by the rulings of the Court of Cassation. After the enactment of the Civil Service Law, a controversy arose about its specific scope of application, with many public entities declaring that they are not addressed by the Law. In August 2015, a statement by the Ministry of Finance further explained the scope of application of the Civil Service Law. According to the statement, the Law does not address general authorities with a special charter (or bylaws) related to civil service. This includes for example the Suez Canal Authority, the Radio and Television Union and the Egyptian National Railways Authority. The Law will also not be applied to “special financial cadres” employees, which are state employees who managed to establish their own financial compensation regulations. These include doctors, judges, diplomats, teachers and employees from a few other sectors. According to the Law and the Decision, the bonus will be payable starting 1 July 2015 both to temporary and permanent employees. The Minister’s Decision stipulated further details about the method of payment as well as groups of state employees that will not be paid the above-mentioned bonus. This includes state employees working abroad (except if their employment is connected to their original employment in Egypt), as well as state employees in Egypt who are on a special leave. The Minister’s Decision also clarified that administrative units are required to present the Ministry of Finance with a statement detailing any additional funds they will need to be able to pay this bonus.   [1] Presidential Decree-Law No.99/2015 on the Special Bonus for Civil Servants Not Addressed by the Civil Service Law, Official Gazette, Issue No. 36 (bis) (e), 9 September 2015. [2] Minister of Finance's Decision No.442/2015 on the Regulations for the Payment of a Special Bonus for Civil Servants Not Addressed by Civil Service Law, Egyptian Gazette, Issue No. 213 (cont.), 16 September 2015. [3] Presidential Decree, Law 18/2015 issuing the Civil Service Law, Official Gazette, Issue No. 11 (cont.), 12 March 2015.