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Eritrea - Minimum Wages - 2011


5 April 2011


Name of Act

The Labour Proclamation of Eritrea Proclamation No 118/2001
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Employee means any person who renders services of a physical or intellectual nature, for a definite or indefinite or indefinite period under the direction of an employer for an agreed employment.

Contracts of employment of the following nature shall not be administered under this proclamation:
(a) members of military, police and security forces;
(b) members of the Eritrean Civil Services;
(c) judges and prosecutors; and
(d) persons holding managerial positions who directly engage in major
managerial functions of an undertaking and have power delegated to them by law or contract of employment to make decisions on behalf of the undertaking.

Contracts of employment of employees of state-owned or state-run profit making undertaking and of employees in projects run by Government agencies shall, however, be governed by this proclamation, although the highest level of administration of the said undertakings or projects may be under civil service.
Labour Proclamation 2001 §3(1)


Employer means any person with a legal or physical personality who employs another under a contract of employment.
Labour Proclamation 2001 §3(5)


’Remuneration’ means all payments due to an employee for rendering services to an employer but does not include:
a. any sum paid to the employee to reimburse him for special expenses incurred by him in the course of his employment; and
b. compensation for service and other compensation payments received because of termination of a contract of employment.

’Wages’ means an amount paid to an employee by an employer in cash for services rendered during regular hours of work based on the contract of employment and includes:
a. any payments made on the basis of a commission, as agreed upon by the employee and the employer, calculated as a percentage of the total volume of work or specific mission; and
b. allowances paid for accomplishing tasks in areas designated as a hardship areas by the government, due to their server conditions.
Labour Proclamation 2001 §3(15) and (16)


There is no centrally determined minimum wage. Rather, minimum wages are fixed by collective agreement at the enterprise level.
Labour Proclamation 2001 §41


Wages shall be determined by the contracting parties, but may not be less than the minimum wages fixed by collective agreement in an undertaking.
Labour Proclamation 2001 §41

Minimum wage set through decentralized collective bargaining

Wages shall be determined by the contracting parties, but may not be less than the minimum wages fixed by collective agreement in an undertaking.

The procedure for collective bargaining is as follows:
(1) A party wishing to conclude a collective agreement shall request the other party in writing. It shall also prepare and submit a draft necessary for the negotiation.
(2) The invited party shall, within fifteen days of receiving the invitation, appear for collective bargaining.
(3) The parties shall, before commencing collective bargaining, draw up the rules of procedure.
(4) Each party shall have the duty to bargain in good faith.
(5) Issues on which the parties cannot reach agreement by negotiation shall be submitted to conciliation, arbitration or to the competent labour dispute settlement body.

A collective agreement is to be, and becomes effective once, registered by the Minister in accordance with §105 of the Labour Proclamation. Once registered, it may be acceded to by other parties.
Labour Proclamation 2001 §§41, 103, 105, 106, 108


No criteria are prescribed by the Labour Proclamation 2001.


Coverage will be determined by the coverage of collective agreements.
Labour Proclamation 2001 §41(2)

Excluded categories

A domestic employee is a person primarily hired for the performance of household duties and chores, the maintenance of the home and the care and comfort of the members of the household and includes a domestic gardeners, guard or driver. The Minister may, by regulation, determine the provisions of this Proclamation, which shall apply to all or to a category of domestic employee and the manner of their application.
Labour Proclamation 2001 §§39, 40
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The minimum wage levels vary in accordance with any applicable collective agreement.
Labour Proclamation 2001 §41

In-kind allowances

The employer may not deduct from, attach or set-off the wages of an employee, except where it is provided otherwise by law or collective agreement or accordance with a court order or an express written agreement of the employee. In no case may the aggregate deduction or setoffs in any one-month exceed one-fifth of the wages due to the employee in that month.

An employer who assigns an employee to travel and work temporarily outside his place of employment shall pay him agreed transport expenses and daily food and, lodging allowances. Where an employee travels and works temporarily in areas designated as hardship areas marked for extra allowance by the government, he shall be entitled to the extra allowance. The perdiem may be increased by agreement of the parties.
Labour Proclamation 2001 §§45, 47

Rate of payment

Wages shall be paid to the employee or his legal representative on the day and at the place agreed by the parties, or on the habitual day and the habitual place of payment.
Labour Proclamation 2001 §44

» Other

As expressly or implicitly agreed between the parties.
Labour Proclamation 2001 §44

Specific provisions

Wages shall be paid only for work done. However, an employee shall be entitled to his wages if he was ready but unable to work due to lack of supply of tools or raw materials or other reasons not attributable to him.

Wages may be paid in any one of the following forms:
(a) time rate, that is where the wages are paid on the basis of a unit time without particular regard to the result of the work done the period may be in hours, a day, a week, a fortnight or a month;
(b) lump sum, that is, where wages are paid for a definite piece of work, irrespective of the time required to complete it;
(c) piece-rate, that is where the quantity and quality of the work done are taken into account for the payment of wages;
(d) combined piece and time rate, that is, where the quantity and quality of the work done within a given period are taken into account for the payment of wages;
(e) job rate, that is, where the employee is paid for a specific amount of work within a specific period; and
(f) commission, that is, where an employee receives an agreed percentage or amount for each operation performed. This type of wages shall be earned as soon as the operation is completed. If, however, the activities of work give rise to various commissions, agreement may be reached for schedules of payment.
Labour Proclamation 2001 §§42, 43

Scheduled frequency of adjustment

The Labour Proclamation 2001 does not prescribe a scheduled frequency of adjustment. However, the duration of a collective agreements may not be for less than 1 year or more than 3 years.
Labour Proclamation 2001 §107

Enforcement mechanisms

The fact that an employee has without protest, received the net amount indicated on the register may not constitute may not constitute waiver of his right to any part of his remuneration which was due.

An individual labour dispute may be brought in relation to claims in relation to wages and other remuneration. These disputes are to be conciliated and arbitrated in accordance with Chapters 2 and 3 of Title X of the Labour Proclamation.
Labour Proclamation 2001 §§46(3), 121(3)
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Labour inspection

The Labour Inspection Service shall ensure the implementation of the provisions of the Labour Proclamation and of regulations and directives issued in accordance with the Labour Proclamation, other laws relating to labour relations, collective agreements and the decisions or orders given by the authorities responsible to determine labour disputes. Inspectors’ powers and responsibilities are set out in §144 of the Labour Proclamation.

Further, employee associations may formulate their functions to include observing the conditions of work and fulfilling the obligations set forth in the Labour Proclamation.

The employer shall keep a register of payment specifying the gross and net pay, other additional remuneration, the amount and types of deductions, and other relevant particulars, and where there is no special arrangement, showing the signature of the employee. The employer shall have the obligation to make the register accessible, and to explain the entries thereof to the employee at the latter’s request.
Labour Proclamation 2001 §§46, 90(1), 143, 144

Fines in national currency for non-respect of legislation

The Labour Proclamation does not expressly prescribe a fine for failure to pay an employee in accordance with the minimum wage. However, an employer that fails to keep records required by the Labour Proclamation may face a fine of up to 1000 Nakfa.
Labour Proclamation 2001 §155

Other penalties

No other relevant penalties identified.
Labour Proclamation 2001

Results generated on: 26th May 2018 at 23:41:04.
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