Egypt raises minimum wage for private sector
Egypt's private sector minimum wage will rise to EGP 7,000 from EGP 6,000, effective 1 March 2025. The National Wages Council also introduced a minimum EGP 250 periodic bonus and set the first-ever minimum hourly wage for part-time workers at EGP 28 net.
The council made these decisions following President Abdel Fattah Al-Sisi's directives, taking into account economic conditions and their impact on the labour market. These changes aim to promote social justice and improve citizens' living standards, according to officials.
Planning and Economic Development Minister Rania Al-Mashat chaired the National Wages Council meeting that addressed the private sector minimum wage.
During the meeting, Al-Mashat reviewed recent economic indicators, highlighting positive growth in the last quarter of the 2023/2024 fiscal year and its continuation into the first quarter of 2024/2025. She noted the non-oil manufacturing sector's shift from contraction to growth, reflected in a rising industrial production index.
Al-Mashat pointed to private sector investments comprising 63% of total investments in the first quarter of 2024/2025. She also mentioned the January 2025 Purchasing Managers' Index (PMI) reaching a four-year high of 50 points, exceeding the neutral zone.
Al-Mashat said the minimum wage increase aims to address current economic changes, promoting economic and social stability. She added that this aligns with International Labour Organization (ILO) guidance on regular minimum wage reviews to protect purchasing power and accommodate economic shifts.
Labour Minister Mohamed Gebran said the decision aligns with President Al-Sisi's directives on social protection and improving living standards. He noted the EGP 250 minimum periodic bonus will improve workers' income and ensure their rights amid economic changes. Gebran explained the Labour Ministry will issue guidance to directorates in all governorates outlining the decision's implementation and monitoring mechanisms, as per Labour Law No. 12 of 2003.
Minimum wage is a tool used globally to protect low-income workers. The ILO's Global Wage Report 2020-2021 states that 90% of its member states have adopted a minimum wage. Egypt's private sector minimum wage has undergone several adjustments since its inception in January 2022. It started at EGP 2,400, rising to EGP 2,700 in January 2023, EGP 3,000 in July 2023, EGP 3,500 in January 2024, EGP 6,000 in May 2024, and now EGP 7,000 in March 2025, including the employer's social insurance contributions as defined in clause (c) of Article (1) of the Labour Law.
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