29
Social Insurance Legislations
Where to Go
LCHR is issuing its report No. 29 in the series of economic and social rights. The report studies and analyses the different paragraphs of previous social insurance laws and its amendments in the new law. The comparison shows that in the course of the state’s economic policies that completely ignore labourers’ rights and moreover violate the rights that they have earned through a long strife. This is very apparent in several laws. Social insurance law completes a triangle of violations started with land tenure law No. 96 of 1992 that caused a severe decomposition of social and economic relationships in Egypt’s countryside. Then comes the unified labour law that forms a new shape of employers/employees relationship for the sake of investors and businessmen. Then comes the social insurance law to assure that the main goal of the government now is to decrease production costs to the lowest possible degree and that the state will not participate any more in providing a social safety. The report makes an overview of the previous reports of social insurance in Egypt including the following:
Law No. 79 of 1975 for workers in governmental, public and private sectors,
Law No. 108 of 1976 for owners of small projects,
Law No. 112 of 1980 for general insurance, law No. 50 of 1978,
Law No. 50 of 1978 for workers abroad,
Law No. 90 of 1975 for workers in armed forces but the report does not concentrate on that law because armed forces work under rules for promotions and vacations.
It to be mentioned that the new law contains some amendments for laws No. 79 of 1975, 108 of 1976 and 50 of 1978, in addition to cancelling of law No. 112 of 1981. These amendments are intentionally made to cope with a group of policies that aim at shrinking the rights and privileges of labourers. Government alleges that these policies are to encourage foreign and local investment. In the meanwhile, labourers are to bear the costs of the economic crisis. This new law is a part of structural adjustment known in media as economic reform. LCHR took the initiative of preparing this report that contains a detailed analysis of the different social insurance legislations. In the first chapter the report narrates the history of social insurance laws before 1975. That will show the concept of social insurance in Egypt and the legislative development that started in 1854 with a decree in 26th of December 1854 and then laws no.:
37 of 1929, 25 of 1957,
1 of 1962,
77 of 1962 and
The last law before 1975 was law No. 75 of 1964 for health insurance
The second chapter is dedicated to social insurance laws after 1975 including the five laws mentioned before starting with law No. 79 of 1975. Then the chapter analyses the paragraphs of law No. 112 of 1981 for general social insurance. That law was issued in order to extend social insurance and contain all the social categories in Egypt, but the law is cancelled in the new law draft. At the end of the end of the second chapter, there is a description of law No. 50 of 1978 for workers abroad.
The third chapter runs a comparison between the different laws of social insurance. The aim of this comparison is to show the possibility if these laws together to provide citizens a proper life whatever their ages and social positions are. The comparison also shows the field in which each law is applicable.
The fourth chapter displays the amendments in the new law and assures the intentional violation of labourers’ rights that appears clearly in adding of 60 months to the minimum work period before retirement with payment mentioned in the previous law. That increase in work period will deprive a big number of labourers of their payments on retirement.
Paragraphs of the new law put more burdens on labourers’ shoulders. Any insured labourer should pay for his own insurance and the insurance of his employer in case the labourer gets an unpaid for vacation and works during that vacation in another place.
The new law states more payments for the retirement payment, less allowances for early retirement and shorter periods to demand a payment, as well as depriving a range of labourers of social insurance and expanding that range by cancelling law No. 112 of 1980. The new law deprives the labourers less than 18 years, domestic manual labourers, agrarian labourers, farer labourers and street marketers.
In case employer neglects insuring the employees, General Authority for Social Insurance gives those labourers a minimum payment and they have to prove their right to more payment through the employer itself!
The new law contains severe punishments in case of violating the rights of the state and on the other hand gives tolerable treatment in case of violating the rights of farmers. If a labourer is given a payment from the authority and he is discovered to be cheating, it will be considered a demeanour, and if an employer neglects insuring a labourer, it will be just an infraction.
The new law decreased the maximum period for demanding insurance rights from five years to one year.
The law also adds five years of payments to be received from labourers in case of demanding a retirement payment for any reason. Law No. 79 of 1975 demanded only 120 months whereas the new law demands 180 months. It means that the minimum period is raised from 10 years to 15 years.
The law increased the minimum period of payment for early retirement from 20 years (240 months) to 25 years (300 months). In case of death or being totally crippled the minimum period is 180 months instead of 120.
The new draft of the law of social insurance that is going to be discussed in the coming round of the parliament contains enormous and clearly intentional violations of labourers’ rights. The above mentioned violations are just some examples of what is mentioned in the report. The government mentions silly reasons for these burdens on labourers, such as it is necessary to put more financial burdens on labourers because more than 250,000 labourers went to early retirement in the course of privatisation. Certainly this allegation cannot be accepted because the authority’s money exceeds 180 milliard pounds and the losses of the authority in money exchange processes in local and international markets exceeds the money paid to early retirement labourers.
The fifth chapter gives some conclusions based on labourers’ demands and their opinion about these unconstitutional amendments. This chapter demands all those concerned to lead a national discussion before this law is approved and the rights of Egyptian labourers are wasted.
The sixth chapter gives detailed comparisons between the last four social insurance laws. This chapter assures the differences between these legislations and the privileges of employers and other categories
Finally, LCHR hopes that the parliament members will consider the conclusions of this report when discussing the paragraphs that destroy the rights of labourers, the rights that are ensured in the Egyptian constitution and international treaties of human rights and the treaties of ILO. Please, protect the rights of the real wealth in our country.