Day by day, many citizens fall victim to war and terrorism, which causes the loss of lives and homes. Although many people willingly sacrifice their lives for the honor of their country amidst these conflicts to ensure that their families, and even the next generation, would have a better and more peaceful life, a significant number of innocent bystanders still become casualties.
To honor these people, President Abdel Fattah Al-Sisi of Egypt promulgated Law No. 4 of 2021, amending some of the provisions of Law No. 16 of 2018 and establishing a Fund that would provide support in all aspects, such as education, health, and social security, to the families of martyrs and victims of wars, terror attacks, and security operations. This law aims to compensate them for the events that transpired from 2011 to 2014, periods in which the country witnessed the martyrdom of many.
Amendments to Law No. 16 of 2018
The legislation has made several material amendments, most notably:
- The imposition of a 0.0005% monthly deduction from the gross salary of employees of public authorities, public sector bodies, companies and subsidiaries, units of a special nature, private funds, and employees of private legal persons for whom labor law provisions apply, except for those paid irregularly or daily;
- Tax impositions on services and documents issued by public authorities, public sector bodies and companies, as well as companies fully owned by the State or those contributing by more than 50%;
- Tax impositions on requests submitted to the same bodies, as well as on documents obtained from them electronically; and
- Allowing free participation for the families of martyrs in sports facilities and youth centers.
Key Objectives: Tribute, Participation, and Awareness
As a summary, the new law reflects the State’s objectives to not only compensate the families of martyrs and victims, but also recognize the worthy contributions that they have. In return for their sacrifices, the State aims to provide even just a small favor and tribute by compensating them.
Aside from this, the law also reflects the desire of the State to instill to the general public of Egypt the importance of recognizing and honoring these people. In this respect, it has included even the youth in its application to raise awareness on the importance of peace and honor so as to prevent history from repeating itself.
Updating Compensation and Payroll Systems
With these changes not only on tax impositions, but also on salary deductions, and given President Al-Sisi’s commitment to timely disburse the Fund, it becomes necessary for all employers in Egypt to ensure that their compensation and payroll services are up to date in order to ensure compliance with the law. To make the necessary updates easier, it becomes vital for them to engage in payroll software like that of BSH Soft, which allows users to customize pay element setups and integrate recent updates on laws involving employee compensation. This will enable them to reflect the required salary deduction with ease, automating the entire process and doing away with manual calculations. Eventually, this will ensure that the Fund is regularly earning for the benefit of the families of martyrs and war victims.