Egypt raises minimum wage in private sector by 17%

Alamy via Reuters

Egypt’s private sector minimum wage will increase by 17 percent to EGP7,000 ($139) a month from EGP6,000, effective March 1, following directives from president Abdel Fattah Al-Sisi.

A minimum wage for part-time workers will also be introduced for the first time, providing a net hourly wage of at least EGP28 ($0.56), the state-run National Wages Council said in a statement.

Rania Al-Mashat, minister of planning, economic development, and international cooperation, said that the wage increase was in response to current economic developments and supported economic and social stability.

The change will affect around 11 percent of the country’s workers. According to figures from the International Labour Organization, the remaining 89 percent of Egyptians work in the public and informal sectors or are self-employed or unpaid family workers.

Food price inflation due to the war in Ukraine and a decline in Suez Canal revenues because of Houthi strikes in the Red Sea have hit Egypt hard. Despite a huge infusion of cash from Abu Dhabi in March last year, EU support, and an IMF package renewed in December, Egypt is still rated at sub-investment grade.

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The move on wages aligns with international standards, as the International Labour Organization stresses the need for periodic reviews of the minimum wage to protect household purchasing power and accommodate gradual economic changes, Al-Mashat said.

The minimum wage policy, which aims to protect low-income workers, was first introduced in January 2022, starting at EGP2,400.

Annual urban consumer price inflation rate fell to 23 percent year on year in December 2024, as expected, from 25 percent in November, its lowest in two years, according to data from statistics agency Capmas.