Egypt to increase minimum private sector wage to $97 per month

REUTERS/Mohamed Abd El Ghany

• Workers receive EGP300 raise
• Move in response to ‘current economic challenges’

The Egyptian government has approved increasing the minimum wage for workers in the private sector by EGP300 ($9.72) to EGP3,000 a month as of July.

The National Wages Council’s decision to raise the minimum wage to EGP3,000 is in line with the council’s policy of achieving a balance between workers and business owners amid the current economic challenges and high inflation rates, Daily News Egypt reported, citing Hala El Said, minister of planning and economic development.

Annual urban inflation rose to 32.7 percent in May, while yearly core inflation jumped to 40.3 percent in the same month.

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The official exchange rate has remained nearly EGP30.90 to the US dollar for over three months.

Last week Egyptian President Abdel Fattah Al Sisi appeared to rule out a further currency devaluation anytime soon.

“We are flexible in the exchange rate, to be clear. But when the matter touches on Egypt’s national security, and the Egyptian people are lost? No. No, no, no,” Reuters reported, citing Al Sisi.

In April, the government raised the minimum monthly wage for state workers to EGP3,500 ($113.45).

In March, Egypt announced an increase in the annual income tax exemption limit to mitigate the effects of the global economic crisis and its repercussions on citizens.

El Sisi issued a directive to increase the tax limit to EGP36,000 ($1,168.68) from EGP24,000 ($776.67) per year.