Egypt to raise monthly private-sector minimum wage to EGP8,500 from January

Egypt’s National Wages Council has approved raising the monthly minimum wage for private-sector workers to 8,500 Egyptian pounds ($157.8) from 1 January 2027, the Cabinet said on Sunday.

The council also approved a minimum annual periodic increment of 3 per cent of the wage subject to social insurance contributions, provided the increase is not less than 350 pounds.

The decisions were taken at a meeting chaired by Prime Minister Moustafa Madbouly and attended by government officials, representatives of employers’ organisations, and labour unions.

The council also approved a minimum net wage of 34 pounds per hour for workers in jobs that are temporary by nature and those working part-time.

Madbouly said the government was keen to ensure private-sector compliance with the minimum wage, given that the sector accounts for the largest share of employment in Egypt. He said the move followed President Abdel Fattah El-Sisi’s directives to improve citizens’ incomes.

The meeting was attended by Deputy Prime Minister for Economic Affairs Hussein Eissa, Finance Minister Ahmed Kouchouk, Social Solidarity Minister Maya Morsi, Investment and Foreign Trade Minister Mohamed Farid, Labour Minister Hassan Raddad, Planning and Economic Development Minister Ahmed Rostom, and Industry Minister Khaled Hashem.

Rostom presented labour-market indicators, saying private-sector employment reached around 26.5 million people within and outside establishments in 2025, out of approximately 32 million workers nationwide. The private sector comprised nearly four million establishments, including formal and informal businesses.

He said labour-force participation had recovered in recent years after declining through 2020, although a gap remained between male and female participation rates. He also highlighted the need to improve workers’ earnings and expand women’s access to employment.

Rostom added that improvements in employment rates provided an opportunity to shift the focus from increasing the number of workers to improving the returns from employment and raising incomes.

Kouchouk said the government would present proposals for future income increases for discussion with private-sector representatives.

Madbouly directed the formation of a joint working group comprising government and private-sector representatives on the National Wages Council to examine proposals for wage increases and ways to improve workers’ incomes across different sectors through 2030.

The annual periodic increment will apply from each establishment’s 2027 financial year, in line with its accounting year. It will be calculated at a minimum of 3 per cent of the wage subject to social insurance contributions under the Social Insurance and Pensions Law, with a minimum value of 350 pounds.