Skip to content Skip to Search
Skip navigation

Egypt increases monthly minimum wage by 50%

By Pramod Kumar
The social protection package ordered by Egyptian President Abdel Fattah El Sisi includes pension hikes and other initiatives to ease the financial burden on citizens Reuters/Amr Abdallah Dalsh
The social protection package ordered by Egyptian President Abdel Fattah El Sisi includes pension hikes and other initiatives to ease the financial burden on citizens

Egypt has launched its “largest social protection package” worth EGP180 billion ($5.83 billion) as part of its move to tackle mounting inflationary pressure, according to a local media report.

President Abdel Fattah El Sisi has ordered monthly minimum wages to increase by 50 percent to EGP6,000 from March as part of a new social protection scheme, Daily News Egypt reported.

The package also encompasses pension hikes and new initiatives to ease the financial burden on citizens.

The scheme allocates an extra EGP15 billion for professionals such as doctors, nurses, teachers and university faculty members, as well as EGP6 billion to appoint 120,000 new medical professionals, teachers and other administrative workers.

The social package includes a 15 percent increase in pensions for 13 million residents worth EGP74 billion.

The social initiative includes raising the tax exemption limit for state, government, and private sector employees by 33 percent, from EGP45,000 to EGP60,000, at an annual cost of EGP5 billion.

Sisi had previously directed the government to double the “exceptional cost of living allowance” for public sector employees to EGP600 from EGP300 last September.

Despite the challenges, Egypt’s inflation decreased from 34.6 percent in November to 33.7 percent in December 2023, according to the state statistics agency Capmas. This comes after inflation reached a historic high of 38 percent in September.

Last week, the International Monetary Fund and Egypt agreed on the key policy elements of an economic reform programme, signalling the near completion of terms for releasing the $3 billion economic aid.

In January, the government raised the prices of several services, including electricity, metro tickets and telecommunication services, to contain a budget deficit.

Latest articles

Gulf airlines, Gulf airlines conflict, Gulf conflict risk, Gulf flights cancelled rerouted

Conflict risk leads Gulf airlines to cancel regional routes

Gulf airlines are among airlines that have cancelled and rerouted flights across the Middle East as the conflict between Iran and Israel escalates. They are avoiding Iranian airspace and many have cancelled routes entirely following a major missile attack by Iran against Israel on Tuesday. Immediately after the attacks about 80 flights operated by carriers […]

Taaleem's schools offer 'exclusive educational experiences' including access to high-tech equipment profits

Dubai school operator Taaleem increases profit by 55%

Dubai school operator Taaleem has reported revenue of AED945.2 million ($257.3 million) for its 2023-24 financial year – a 15.5 percent year-on-year increase. More student enrolments and the opening of new schools helped Taaleem to increase net profit before tax by 55 percent, to AED182 million, in the financial year ending August. Taaleem’s shares were […]

Shein IPO

Mubadala-backed Shein courts investors before London IPO

Chinese fashion retailer Shein, which is backed by the Abu Dhabi sovereign wealth fund Mubadala, is courting European investors before an initial public offering on the London Stock Exchange. Shein is due to hold informal meetings to answer questions and test the investment appetite of major investors in the coming weeks, before its planned IPO […]

Workers stand on a scaffold in Dubai. Building a high rise in the UAE can be as much as two thirds cheaper than in other major cities

Apartments in UAE among cheapest to build in the world

Building a standard residential high-rise in Dubai or Abu Dhabi is up to two-thirds cheaper than in other major global cities, thanks to land, labour and raw materials all costing much less. Land is up to three times cheaper in the UAE compared with the prices paid in New York, London, Hong Kong and Singapore […]