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4 February 2015: Jordan – Tax and Social Security Updates

4 February, 2015 by John Tinsley Leave a Comment

Compandben’s International HR Services –

Compandben’s Jordan Employment Service Partners –

 

Jordan flagJORDAN’s new Income Tax Law (No 34) for the year 2014, which entered into force effectively January 1st 2015, was published in the official Gazette on 31st December 2014 edition No 5320. See below for an overview of the major changes.

 

• Payroll / Personal Income Tax Rates: 

Taxable Income *

Rate

First 10,000

7%

Second 10,000

14%

Above

20%

 

In addition, please note that native persons (individuals / employees) shall be entitled to personal exemptions as follows:

– Personal exemption of JOD 12,000. (Provided that he stays in Jordan for more than 183 days during the calendar year whether continuous or interrupted.)

– Family Exemption of JOD 12,000. (Provided that his family stays in Jordan for more than 183 days during the calendar year whether continuous or interrupted.)

– Additional Personal and family exemption of JOD 4,000 on Medical Expenses, University Education Expenses and Interests paid on Housing Loans, Housing rent, technical services, engineering services, legal services provided that supporting documents and invoices are available and to be granted on a case by case basis after reviewing the related supporting documents by the Income Tax Department.

– Exemption in the amount of JOD 3,500 in relation to the monthly Retirement Benefits instead of JOD 4,000 under the old Law.

• Withholding tax of non- Resident services providers has been increased to be 10% instead of 7%.

• Withholding tax 5% on real estate rent has been abolished.

o Effectively 1st Jan 2015 specifies certain service providers to be subject to 5% retention. Those service providers are: Doctors, Lawyers, Engineers, Certified Public Accountants, Experts, consultants, Insurance Agents, Custom Clearing Agents, Arbitrators, speculators, Agents and brokers for commission, financial brokers, freight forwarders. Any other persons will be determined according to the related regulations which will be issued for this purpose by the Minister of Finance.

• Withholding tax on in cash and in kind prizes and Jordanian Lottery in excess of JOD 1000 per each prize has been increased to be 15% instead of 10%.

• In-kind and in-cash dividends are not subject to withholding tax whether paid to a resident to non-resident party.

Social Security Updates:

According to Law No (1) of 2014, social security rates will be increased in 2015, 2016, and 2017. The increase will be 0.25% on employee share and 0.50% on employer share yearly. This will be fixed after 2017 when employee share will be 7.5% and employer share will be 14.25%.

Year

Employee

Employer

2015

7%

13.25%

2016

7.25%

13.75%

2017

7.5%

14.25%

 

Should you need further information or clarification, please do not hesitate to contact us:

Contact Compandben or visit Compandben Main Website – Jordan Payroll & PEO Services

John Tinsley

Filed Under: all, Employment Services (PEO), Human Resources, International Payroll Tagged With: Income tax, international employment, international hr, international human resources, international payroll, Jordan, rent, Social Security, Tax, Tax exemptions, Withholding tax

21 January 2015: Finland – Daily Allowance Rules – Internal and International ‘Per Diem’ Rates

21 January, 2015 by John Tinsley Leave a Comment

Compandben’s International HR Services –

Compandben’s Finland Employment Service Partners –

 

Finland flagHere is a brief description of the Daily Allowance system in operation in Finland. This is probably of limited interest but it contains a summary of the per diems in other countries accepted in Finland.

It may be of use to HR Directors and Finance Directors developing a travel policy and looking for guidance on comparative costs. For instance if based in say USA, where the per diem is €65, you can note that the per diem in Poland is only €56 and so you could make a rough and ready calculation that costs are 14% lower there than in USA.

 

Finland Per Diem Rules – Questions and Answers

Q In LATVIA the employer doesn’t seem to have any choice. He is legally required to pay the higher of the Per Diem or the actual reimbursement. Is that the same in FINLAND?

A The per diem is possible if the employee makes an invoice of each day with the time when the journey ha started and ended, the distance to the destination and the purpose of the journey. The same rules are about tax free kilometre allowance. For other kinds of expenses he should give all invoices and receipts to the employer. If he cannot give these documents the allowance is taxable salary.

Q Is the per diem taxable ?

A The daily allowance is tax free if the temporary journey takes more than 10 hours and more than 15 km from the home or permanent working place and more than 5 km from both. 2014=39.00/day, 2015 = 40.00/day.
The partial daily allowance is tax free if the temporary journey takes more than 6 hours and more than 15 km from the home or permanent working place and more than 5 km from both. 2014=18.00/day, 2015 = 18.00/day.
Depending on the duration of a business trip, the maximum per diem amounts are the following: (2015)

Duration of trip

Maximum per diem

More than 6 hours (partial amount)

€18.00

More than 10 hours (full amount)

€40.00

and, if travel time exceeds the last full day of travel:

– by at least 2 hours

€18.00

– by more than 6 hours

€40.00

For any day of travel, when the employee receives free meals, or meals included with the travel ticket, the maximum per diem is half the amount specified in paragraph 1 above. Free meals comprise two free meals in the case of full per diem, and one free meal in the case of partial per diem.

Q Is there a list of the applicable per diems for countries around Finland – Sweden, Lithuania, Denmark, Latvia, Estonia, Poland, Russia, Norway?

A The maximum (€) per diems currently payable for business travel around Finland in the above countries are:

Country or region

Maximum per diem €

Denmark

68.00

Estonia

51.00

Latvia

50.00

Lithuania

50.00

Norway

68.00

Poland

56.00

Russian Federation

53.00

– Moscow

66.00

– St Petersburg

61.00

Sweden

64.00

 

Click here for a full International list of maximum (€) per diems currently payable (ranging from 35.00 for Bolivia to 65.00 for USA and to 97.00 for Angola).

The per diem allowance concerns one day of travel i.e. 24 hours from the beginning of a business trip or 24 hours from the end of the preceding day of travel.

The maximum amount of per diem is defined on the basis of the country or region where the day of foreign travel ends. If the day of travel ends on a ship or airplane, the amount should be based on the country from where the ship or airplane last departed or, if leaving Finland, where it will first arrive.

Upon returning to Finland, the employee is entitled to half of the per diem for foreign travel paid for the last completed day of travel if the length of the business trip exceeds, by more than two hours, the last full day of travel that ended in foreign territory or in a ship or airplane departing from such territory.

If the length of a business trip exceeds, by more than ten hours, the last full day of travel, which ended in foreign territory or in a ship or airplane departing from such a territory, the employee is entitled to a per diem for foreign travel for the last full day of travel. The maximum amount payable for a day of travel or part thereof beginning after the employee returns to Finland must be determined as prescribed above.

For any business trip in foreign countries lasting a minimum of 10 hours, the employee is entitled to the confirmed amount for the relevant country. If the total duration of the trip is shorter than 10 hours the amount should be paid in accordance with the provisions and amounts applicable to domestic travel.

If the employee receives free meals or meals included in the price of a ticket or a hotel room the per diem must be reduced by 50 percent. For the purposes of calculation of per diems for foreign travel, two free meals constitute ‘free meals’.

If a business trip outside Finnish territory is made, the work being done under exceptional circumstances at the request of an employer located in Finland, and if the employee returns to Finnish territory for the night, and no per diem is being paid under the above, the maximum allowance for business travel, by derogation from subparagraph 1 above is €18.00.

If the employee has the right to have daily allowance (>10 hours / >15 km / >5 km) or partly daily allowance (>6 hours / >15 km / >5 km) expenses like food and coffee are included in the daily allowance. Expenses like parking, hotel or entertainment expenses are not included, the employer can also pay these to the employee.

But if the employee gets partly daily allowance and also has got one meal of food (for example in connection to entertainment or education) ½ of the partial daily allowance must be deducted, and

If the employee gets full daily allowance and also has got two meals of food (for example in connection to entertainment or education) ½ of the full daily allowance must be deducted.

For more information…

Contact Compandben or visit Compandben Main Website – Finland Payroll & PEO Services

John Tinsley

Filed Under: all, Employment Services (PEO), Human Resources, International Payroll Tagged With: Daily alllowances, employment services, Finland, international employment, international hr, international human resources, international payroll, Partner Company, Per diem, Tax, Travel allowance

7 January 2015: Italy – Incentive for Employing a Previously Unemployed Person

7 January, 2015 by John Tinsley Leave a Comment

Compandben’s International HR Services –

Compandben’s Italy Employment Service Partners –

 

Italy Flag

In Italy employer charges are reduced up to 100% for 2 years for hiring an unemployed person. Also for foreign firms registered as Employers. The following details are provided in conjunction with our Employment Service Partner Company in Italy, in response to a query.

 

The Italian government provides a financial incentive for firms that hire employees who are unemployed. The concession is available even to foreign firms that are just registered as Employers in Italy (even without a branch or other legal entity). It lowers the Employer social charges from the normal 30% of gross remuneration to 15% or even to ZERO for employees hired while previously unemployed. The 30% doesn’t include the end of service indemnity of approximately 8.5% (called TFR) which is still payable.

The concession lasts up to 2 years and applies only to EMPLOYER social charges – employees pay their social security contributions as normal.

 

For more information…
Contact Compandben or visit Compandben Main Website – Italy Payroll & PEO Services

John Tinsley

Filed Under: all, Employment Services (PEO), Human Resources, International Payroll Tagged With: Employer incentive, international employment, international hr, international human resources, international payroll, Italy, legal entity, Partner Company, PEO Services, Social charge, Social Security, Unemployment

8 October 2014: Compandben at HRM Expo Zukunft Personal 14-16 October

8 October, 2014 by John Tinsley Leave a Comment

Europe’s Largest Exhibition for HR Management –

Compandben’s International HR Services –

International

 

Compandben will be participating in the HRM Expo (Zukunft Personal) in October 2014.

We have a stand along with our partners for Germany and Mexico

Here is the text of the posters we will be putting up.

If any readers of this blog are going to the conference please let me know

john@compandben.com

 

COMPANDBEN SERVICES -160 COUNTRIES

• HR Advice-remuneration, benefits, terminations, employee handbooks.

• Employment Contracts customized for particular countries –usually free !

• Payroll Administration Solutions- for 1 or 1000 employees.

• PEO –Employer of Record Service -100 countries (including Germany)

COMPANDBEN SERVICES -160 COUNTRIES

Leave your business card – there is a daily raffle for a bottle of Champagne.

Compandben Dienste – 160 Länder

Dies sind die Dienstleistungen, die Compandben anbietet:

• Personalberatung, Zusatzleistungen, Kündigungen, Arbeitnehmerhandbuch.

• Arbeitsverträge kundengerecht angefertigt für einzelne Länder – meist frei!

• Verwaltung der Lohnkonten – für 1 bis 1000 Arbeitnehmer

• Professionelle Organisation des Personalwesens – Dokumente/ Archivierung / Erfassung für Arbeitgeber- in 100 Länder (Deutschland eingeschlossen)

Compandben Dienste – 160 Länder

Lassen sie eine Visitenkarte hier – täglich wird eine Flasche Champagner verlost.

Compandben Main Website – Mexico Payroll & PEO Services

Compandben Main Website – Germany Payroll & PEO Services

Compandben Main Website – International HR Services

John Tinsley

Filed Under: all, Employment Services (PEO), Human Resources, International Payroll Tagged With: Benefits, champange, Employee contract, Employer of Record Services, Expo, Germany, HR Management, HRM Expo, international employment, international hr, international human resources, international payroll, Mexico, PEO Services, remuneration, termination, Zukunft Personal

1 October 2014: £2000 Allowance for Employers of UK Employees

1 October, 2014 by John Tinsley Leave a Comment

Compandben’s International HR Services –

Compandben’s UK Employment Service Partners –

 

Quote from our UK Employment Services Provider Partner:
UK flag

Clients that have UK employees might want to check that their local payroll provider or PEO service have implemented the GBP2000 allowance for the 2014 tax year. It is a once off allowance. Here is a copy of a note issued by the firm we use for payrolls in UK.

From 6 April 2014 employers can claim the Employment Allowance and reduce their employer Class 1 National Insurance contributions (NICs).
As an eligible company you can reduce your employer Class 1 NICs by up to £2,000 each tax year. We will process the claim during our normal payroll process. When we make the claim, we shall reduce the employer Class 1 NICs payment by an amount of Employment Allowance equal to the employer Class 1 NICs due, but not more than £2,000 per year. For example, if your employer Class 1 NICs are say £1,200 each month, in April your Class 1 payments will be NIL and in May £800, as the allowance is capped at £2,000.

For more information…
Contact Compandben or visit Compandben Main Website – UK Payroll & PEO Services

John Tinsley

Filed Under: all, Employment Services (PEO), Human Resources, International Payroll Tagged With: Employment Allowance, international employment, international hr, international payroll, NIC, Partner Company, Tax, UK, United Kingdom

24 September 2014: Paternity Leave in Portugal

24 September, 2014 by John Tinsley Leave a Comment

Compandben’s International Employment Services –

Payroll Partners & PEO Services in Portugal –

Portugal flag

 

We have been implementing a paternity leave project for a client in Portugal.

One of our partners employs an individual in Portugal on behalf of a client.

 

1.The paternity leave has no impact in the vacation days.

2.The father is entitled by law to 10 working days of Paternity leave divided into
– 5 consecutive days, immediately after the birth of child;
– and 5 days consecutive or not, within 30 days from the birth of the child.

In addition to the 10 days vacation, the father can share the mother’s 30 calendar days of maternity leave.

The employee must inform the employer in writing of the duration of the leave, preferably delivering the document requesting the parenthood subsidy that was handed to Social Security –
This absence is not paid by the employer; the employee will receive through Social Security.

However in the case we dealt with the employees took 20 days of leave, and the employer advanced the funds to the employee: so effectively the employee received a normal salary. This was done in case the Portuguese social security paid the allowance to the employee late.

For more information…
Contact Compandben or visit Compandben Main Website – Portugal Payroll & PEO Services

John Tinsley

Filed Under: all, Employment Services (PEO), Human Resources, International Payroll Tagged With: international employment, international payroll, maternity leave, Partner Company, paternity leave, Portugal, Social Security

6 August 2014: Labour Law, Pension Law and Disability Insurance Amendments in Serbia

6 August, 2014 by John Tinsley Leave a Comment

Compandben’s International Employment Services –

Payroll Partners & PEO Services in Serbia –

 

Serbia flag

Information about recently adopted amendments to the Labour Law and the Law on  Pension and Disability Insurance has been provided by our Employment Service Partners in Serbia*. 

 

The adopted amendments to the Labour Law and the Law on Pension and Disability Insurance

In order to create a better economic and business climate beneficial for both employees and the employer, the Assembly of the Republic of Serbia adopted the proposed amendments to the Labour Law on July 18th 2014. The amendments will enter into force 8 days after its publication in the “Official Gazette” of the Republic of Serbia.

General Assembly adopted the Law on Pension and Disability Insurance on the same day 18.7.2014.

 

Changes to the Labour Law

Amendments to the Labour Law of the Republic of Serbia introduce a number of changes in legal regulation of labour relations.

Increased earnings:

Years of Service
One of the innovations introduced is in the definition of work performed in the past, and the right of workers to increased earnings on the basis of years spent in service. An employee is entitled to increased pay for each full year of employment with the current employer ONLY, in the amount of at least 0.4% of the base salary. This change ignores the years of service spent at the previous employer(s).Therefore, reflects the change in the calculation of earnings and the structure of the labor contract.

Night and Shift-Work
Within the framework of Article 108 of the Labour Law, the employee is entitled to increased earnings during night shift work, in the percentage of 26% of the base salary, but no longer entitled to increased compensation for regular daily shift work.

Severance Pay
The adopted change to the Article 158 of the Labour Act reduces the amount of severance pay employee is entitled to in case of termination of employment contract based on the redundancy. Severance pay in case of redundancy termination grounds can not be less than the sum of one third of the employee’s salary for each completed year of service with the current employer. When calculating severance pay, years of employment with the previous employers shall not be taken into the account (Except in case of employer status change in accordance with Article 147 of the Labour Law, as well as related parties with the employer and in accordance with the law). Under Article 158 of the Act, introduced is restriction for employee not being able to qualify for severance pay for the period for which he has already received severance pay with the same or different employer.
In case of retirement the employee is entitled to severance pay of two average salaries, instead of the three regular salaries as previously defined in the old Law.

Limited term employment contracts and probation period
Limited term employment contracts may be established for a period no longer than 24 months of continuous or non-continuous employment. Employment contract must specify the reason for employment for a definite period of time. Exception is newly established businesses with registration old lest then a year in BRE in which case limited term employment contracts can be established for a period no longer that 36 months.
Probation period remained the same – up to 6 month but new Law require from employer to explain detail and in writing reasons for termination during the probation period.

Paid Leave

Vacation
Employee is entitled to annual paid vacation after one month of continuous service and not after six months as it was previously defined in old Labour Law.
During the vacation employee is entitled to compensation in the amount of average earnings preceding twelve months while currently vacation pay is calculated based on the average gross earnings in the past three months prior to the absence.
New Labour Law changes propose loss of compensation rights for unused vacation days, with one exception – termination of employment contract by employer. In that case employee is entitled to reimbursement for unused vacation days in the amount of the average salary in the previous twelve months, in proportion to the unused days of vacation.

Paid leave
The total duration of the employee right to paid leave is reduced from the current seven to five days in a calendar year (marriage, birth of a child, serious illness of a family member or other case described in employer rulebook).
In addition, employee gets two paid days for blood donation, and five days in case of death of close family members.

Forced vacation leave
During the forced vacation leave an employee is entitled to compensation in the amount of 60% of average salary compensation in the past twelve months. Current law calculates the compensation based on the average salary compensation paid in the previous three months.

Short term disability and injuries at work
During the temporary disability employee is entitled to compensation in the amount of 65% of base salary in the past twelve months plus years of service, and 100% for occupational and work injuries. Under the current law employee is entitled to the average wage paid in the three months prior to the commencement of incapacity for work.

Minimum Wage
The Employer shall have an obligation to formally announce through internal act or labour contract the reasons for the decision on the introduction of the minimum wage. Employer shall inform the union representative of the reasons for the continued payment of the minimum earnings six months after the decision on the introduction of the minimum wage. In the current law this obligation is not defined.

Other salary expenses
New law introduces changes to the provisions to mandatory compensation of other salary expenses:
• If an employer provide their own transportation for commuting to and from work the employee is not obliged to pay compensation cost equal to the price of public transport;
• If the employer provides food during the work in any other way, it does not have to be paid in the amount of the employee’s account.
The change of residence of the employee after the conclusion of the employment contract can not affect the increase of transportation costs, without employers consent.

 

Employment contract Annex
Introduces a new Article giving possibility to employer to temporary transfer employee to other more suitable job position up to 45 working days, over a period of 12 months, without the offer of Annex contract, with the right to keep the same salary if that is more favourable to the employee.

Termination of employment
Regarding the termination of employment contracts, changes in the law further specified the grounds for termination of employment, with more reasons needed to be specified, employer prior to termination of employment, must warn employee, give him instructions on how to do the job and leave a reasonable amount of time for improvement of work or to offer employee different position in the company.
In terms of redundancy, new law shorter the period of time in which the employer after terminating employee in a specific position on redundancy reasons to hire new employee in same position. Period is shortening from six to three months.
New legislation allows employer to define by internal act or employment contract notice period longer than 15 days but not longer than 30 days.

Redistribution of working time
New legislation provides possibility to have collective agreements defining that the redistribution of working time does not have to be linked to the calendar year, and last more than six and a maximum of nine months.

Remote work
For the first time new legislation defines remote work and work from home, introducing possibility that by mutual consent of employer and employee portion of the agreed working hours can be performed from home.

Job classification
An employer who has more than ten employees is obliged to make rules for the organization and job classification. Before the changes, this obligation was applicable to all employers with more than five employees.

The rights of pregnant women and nursing mothers
New legal provision protects the rights of pregnant women and nursing mothers and prevents the employer to declare them redundant.

 

Amendments to the Law on Pension and Disability Insurance

New legislation increase retirement age for women additional six months starting from January 2015 with a minimum years of service of fifteen years. According to the planned trend in 2032 retirement for women will be sixty-five years of age.

Amendment of the Law introduces the possibility of early retirement for those with forty years of service. Forfeiture of the missing years will be charged 0.34% penalties and pensions diminished maximum 20.4%.

The woman, who gave birth to one child, is entitled to an additional six months of service, the two children a year, and three or more children two years ago.

 

We and our Service Provider Partners for Serbia would like to use this opportunity to propose the synchronization of the employment contracts, the Rules of Procedure, Job Classification and Collective Agreements with the new legal requirements, as well as to offer technical assistance and assessment of the impact of changes to the current salary structure and other compensation payments in your organization.

 

For more information…
Contact Compandben – John Tinsley or visit Compandben Main Website – Serbia Payroll & PEO Services

* Serbian Language Text PDF: Usvojene izmene Zakona o radu i Zakona o penzijskom i invalidskom osiguranju

John Tinsley

Filed Under: all, Employment Services (PEO), International Payroll Tagged With: Disability Insurance, Employee contract, international employment, international hr, international human resources, Labour Law, Partner Company, Pension Law, PEO Services, Serbia, severance

31 July 2014: Military Tax on Salaries in Ukraine

31 July, 2014 by John Tinsley Leave a Comment

Ukraine Authorities pass New Law –

Tax on Salaries to finance Military Operations –

Ukraine flag

Ukrainian authorities passed a law today that 1,5% of gross salary would be paid as Military tax till the end of 2014 to finance the military operations in Ukraine. Thus the net salary would decrease. Many companies are evaluating whether to pay this tax for the employees as a gesture of solidarity.

 

For more information…
Contact Compandben or visit Compandben Main Website – Ukraine Payroll & PEO Services

John Tinsley

Filed Under: all, Breaking News, International Payroll Tagged With: international employment, international payroll, law, Military Tax, Partner Company, Ukraine

1 July 2014: Government and Bank Closures for Eid Holidays in Saudi Arabia – URGENT NOTICE

1 July, 2014 by John Tinsley 1 Comment

Compandben’s International Employment Services –

Payroll Partners & PEO Services in Saudi Arabia –

 

Saudi Arabia flag

URGENT important advice has been forwarded by our Saudi Arabia Payroll and Employment Service Provider Partners as below:

 

 

 

As per the Information from Saudi Government they will close offices on 21st July 2014 for Eid holidays and re-open on 3rd August 2014.

Please make sure the Exit Re Entry, visa extension or any Issues related to government offices must be done before the closing date.

Last date for submission to companies for government related works will be Monday 14th July 2014. As we will need time to process versus Ramadan timings.

Cooperation to submit any requests ASAP would be appreciated.

FINANCE Contacts : please note that the BANKS in KSA will also close for a week until 3 August. To enable any forward transfers for July payroll etc., payments to Saudi Arabia should be received by 22 July at the latest.

Other banks in GCC countries will also be similarly affected by a closure schedule for EID holidays.

Contact Compandben or visit Compandben Main Website – Saudi Arabia Payroll & PEO Services

John Tinsley

Filed Under: all, Employment Services (PEO), International Payroll Tagged With: Bank Closure, Eid, GCC, Government offices, Holidays, international employment, international payroll, July 2014, KSA, Office Closure, Ramadan, Saudi Arabia, Urgent Notice

25 June 2014: Special Raise Decreed in Egypt: Mandatory for Public Sector Employees

25 June, 2014 by John Tinsley Leave a Comment

Compandben’s International Employment Services –

Payroll Partners & PEO Services in Egypt –

 

A new Presidential Decree (Law no # 42) is applicable for the year 2014. This is a special monthly increase whereby 10% of basic salary is exempt from tax effective July 1st 2014. In theory, this applies to all employees, regardless of when they were hired.

Egypt flagIt is a must for all public sector companies but optional for private sector companies. In practice it is customary that this is granted to private sector employees.
Our Egypt Payroll and Employment Services Partners will apply this to all employees’ salary calculations, effective July 1st 2014 unless there are special circumstances.

The following details of the Decree and Law are issued in translation by the Middle East Library for Economic Services http://www.egyptlaws.com

Official Journal – Issue No. 22 (Bis – A) – Dated 1 June 2014
Presidential Decree-law No. 42 of the year 2014
On Granting A Special Raise To The State Civil Servants
Interim President of the Republic,

After reviewing the amended Constitution issued on the eighteenth of January, 2014;
Law on the State Civil Servants System promulgated by Law No. 47 of the year 1978,
Law on Public Sector Companies promulgated by Law No. 97 of the year 1983,
Law on Public Business Sector Companies promulgated by Law No. 203 of the year 1991, and
And after getting the approval of the Cabinet of Ministers,
DECREED THE FOLLOWING LAW:

Article : 1
A special monthly raise shall be granted as of the First of July 2014 to the State civil servants at the rate of (10%) of their basic salary on 30 June 2014 or on the date of appointment with regard to those appointed after that date, without minimum or maximum limits. This raise shall not be considered as a part of the basic salary of the civil servant.
The Minister of Finance shall issue the decrees required for the enforcement of the provisions of this special raise.

Article : 2
In applying the provisions of the present law, the State civil servants shall mean those employed inside the Arab Republic of Egypt, as permanent and temporary workers with comprehensive remunerations, in the State administrative machinery, or in the local administrative units, the public authorities, the public legal persons, the public sector companies, or the public business sector companies, and the State civil servants whose employment affairs are regulated by special laws or regulations as well as those holding public positions and those appointed with fixed salaries.

Article : 3
The special raise prescribed by the present law, and the increase determined effective from the First of July 2014 in the pension payable to the civil servant for himself shall not be combined, subject to the following:
1- If the age of the civil servant is less than the prescribed retirement age, the special raise shall be payable thereto, and if this raise is less than the increase in the pension, the pension shall be increased by the difference between them.
2- If the civil servant attains the prescribed retirement age, the increase in the pension shall be payable thereto, and if this increase is less than the special raise, the difference between them shall be paid to the worker by the entity employing him.

Article : 4
The present law shall be published in the Official Journal, and shall be enforced as of the First of July 2014.

Issued at the Presidency of the Republic on the 3rd of Shaban, 1435 (Islamic Calendar), corresponding to the 1st of June, 2014 (Gregorian Calendar).
Adly Mansour

Contact Compandben or visit Compandben Main Website – Egypt Payroll & PEO Services

John Tinsley

Filed Under: all, Employment Services (PEO), International Payroll Tagged With: Decree, Egypt, international employment, international hr, international payroll, law, Partner Company, Private Sector, Public Sector, Raise, Tax
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