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Egypt raises minimum wage for private sector to EGP 7,000 per month
Egypt has increased the minimum wage for private sector workers to EGP 7,000 per month (approximately $139) starting March 1, up from EGP 6,000.
Details
The long-expected wage hike was announced following a meeting of the National Wages Council, chaired by Rania Al-Mashat, Minister of Planning, Economic Development, and International Cooperation.
Al-Mashat stated that the decision aims to improve citizens’ living standards, considering ongoing economic challenges and their impact on the labor market.
The council also set:
- A minimum annual raise of EGP 250 per month for private sector employees.
- A minimum hourly wage for temporary workers for the first time is set at EGP 28 net per hour.
Government Support
Prime Minister Mostafa Madbouly pledged last week to introduce a new social protection package, including salary and pension increases.
This initiative is intended to support citizens struggling with rising prices, ahead of the holy month of Ramadan.
Globally, the minimum wage is recognized as a key labor protection tool, according to the ILO’s Global Wage Report 2020-2021, which states that 90% of ILO member countries have a set minimum wage.
Egypt has progressively raised its minimum wage since it was first set at EGP 2,400 in January 2022, reaching EGP 6,000 in May 2024, before the latest increase.
Private Sector Growth
Al-Mashat also highlighted a significant rise in private sector investments during the first quarter of the current fiscal year, accounting for 63% of total investments.
This positive momentum contributed to Egypt’s Purchasing Managers’ Index (PMI) for January 2025 recording its best performance in over four years, driven by increased production and sales volumes.
Inflation in Egyptian cities eases slightly to 24% in January
Annual inflation in Egyptian cities slowed to 24% in January, down from 24.1% in December, marking the third consecutive month of decline.
Details
Data from the Central Agency for Public Mobilization and Statistics, released on Monday, showed that food and beverage prices—the biggest driver of inflation—rose by 20.8% year-on-year in January, compared to 20.3% in December.
Meanwhile, inflation across all governorates climbed to 1.5% on a monthly basis, up from 0.2% in December.
It’s worth noting that the annual consumer price inflation rate for cities serves as Egypt’s primary inflation indicator.
Market Watch
The Central Bank of Egypt has kept its key interest rate at 27.25% since March 2024.
The next Monetary Policy Committee meeting is scheduled for February 20.
Back in September, the central bank stated that interest rates would remain unchanged until inflation sees a “significant and sustained decline.”
The bank is targeting an inflation rate of 7% (±2%) by the end of next year, making a near-term rate cut unlikely—the first since 2020.
What else is clapping?
- Sources: Capital Med Plans Direct Listing on EGX in H1
Capital Med, the medical city in Badr City, is planning a direct listing of its shares on the Egyptian Exchange (EGX) within the first half of the year, according to a report by Al Borsa newspaper.
Sources revealed that the listing will be followed by a capital increase to help finance the four construction phases of the medical city.
Recently, Go Green (GGRN) was also listed through a direct listing but had a rough start, with its stock closing down more than 6% on its first trading day.
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