JANUARY 2023 – EGYPT | ESWATINI | NAMIBIA | ZIMBABWE RECENT LEGISLATION CHANGES It is important that employers note the following:
EGYPT
Minimum wage increase
In its meeting dated 28 December 2022, the National Wages Council issued a decision to increase the minimum wage of private sector employees from EGP 2,400 to EGP 2,700, effective 1 January 2023. The decision is reflected in a decree issued by the Minister of Planning and Economic Development.
The National Wages Council also approved that the value of the periodic annual bonus for the private sector, which is effective from 2023, should not be less than 3% of the insurance subscription wage stipulated in the Social Insurance and Pensions Law, with a minimum of EGP 100.
The modification of the rate from 7% to 3% was due to the social insurance salary being calculated upon the gross salary as opposed to the basic salary, by virtue of Social Insurance Law No. 148 of 2019 and its Executive Regulations. Consequently, a study was conducted to fix the equivalent percentage of the 7% stipulated in the Labour Law.
Effective 1 January 2023, the Eswatini National Provident Fund (ENPF) Board has increased the ceiling amount of wages for the purposes of the calculation of statutory contributions from E3,300.00 to E3,500.00 per month, bringing the maximum contribution per employee and employer to the following:
It is illegal for the employer to recover arrears of contributions from current wages.
A supplementary contribution may be deducted from an employee’s wages in whole or in part, depending on the agreement reached between the employer and the employee.
As the Swaziland Revenue Authority Tax Year runs from July to June and the ENPF limits are applied from January to December, with an annual increase in January every tax year, the tax constant should be changed twice per year, i.e. in January and again in July.
To view the official publication (to date, only available on its LinkedIn page), follow the link.
NAMIBIA Designated employers threshold reduced
The Minister of Labour, Industrial Relations and Employment Creation has reduced the prescribed threshold requirements for designated employers (DEs) from the current 25 to 10 employees.
Notice of the threshold reduction was published in the government gazette of the Republic of Namibia on 30 September 2022.
Any employer who employs ten employees and more is now regarded as a DE and is required to comply with the provisions of Part 3 of the Employment Services Act, 2011 (Act No. 8 of 2011) as of 30 September 2023.
The Employment Services Act makes a provision for any designated employer to register with the Ministry and report any vacancies within its establishment to this Ministry. This enables the Ministry to link the DEs and also to register job-seekers in terms of employment through the Namibia Integrated Employment Information System (NIEIS). Additionally, DEs are also required to submit profiles of establishments on an annual basis.
The change of the threshold is prompted to promote inclusivity and allow extension to the informal sector, which forms a large part of the Namibian labour force.
It is unlawful for a DE to fill a vacancy without considering in good faith any suitably qualified job-seeker referred to the employer by the Ministry. Any DE who contravenes or fails to comply with this requirement commits an offence and on conviction, is liable to a fine not exceeding N$20, 000.00, or imprisonment not exceeding two years, or both such fine and imprisonment.
Zimbabwe’s 2023 income tax tables were released by the country’s tax agency.
The Zimbabwe Revenue Authority (ZIMRA) releases tables in Zimbabwe dollars and US dollars. The tables in US dollars are unchanged from 2022, but the tax brackets in the tables in Zimbabwe dollars have been adjusted from 2022.
With effect from 1 January 2023, the monthly PAYE tax free threshold for employees has increased to ZWL$ 91,666.67.
Monthly tables from 1 January 2023 to 31 December 2023 – ZWL:
Annual tables from 1 January 2023 to 31 December 2023 – ZWL:
Monthly tables from 1 January 2023 to 31 December 2023 – Foreign Currency (unchanged):
