The Egyptian government has announced a significant increase in the minimum wage for private sector workers. As of January 1, 2027, the minimum wage will rise to 8500 EGP per month, up from the current 7000 EGP. This decision was made by the National Wages Council, led by Prime Minister Dr. Mostafa Madbouly. The increase aims to improve the living standards of millions of workers in the private sector.
The new minimum wage represents a 1500 EGP increase, or approximately 21.4%, from the current rate. However, the actual increase in salary will vary depending on the worker's current wage. For instance, workers currently earning 7000 EGP will see their salary rise to 8500 EGP, an increase of 1500 EGP. Those earning 7500 EGP will receive an increase of 1000 EGP, while those earning 8000 EGP will get a 500 EGP raise.
Not all private sector workers will receive a uniform increase of 1500 EGP. The new minimum wage only applies to workers whose current salary is below 8500 EGP. Workers earning above this threshold will not automatically receive a 1500 EGP increase. The council's decision focuses on ensuring that low-income workers benefit from the new minimum wage.
In addition to the increased minimum wage, the National Wages Council has also decided to raise the minimum hourly wage for temporary or part-time workers to 34 EGP per hour. This move aims to extend wage improvements to workers in non-traditional employment arrangements.
The council has also approved a minimum annual bonus for private sector workers. The bonus will be 3% of the worker's insurance subscription wage, with a minimum of 350 EGP. This bonus is separate from the increased minimum wage and will be implemented starting from the 2027 financial year.
The new minimum wage and bonus will take effect on January 1, 2027. The government has indicated that it will continue to study ways to improve worker incomes over the coming years. A working group, including representatives from the government and private sector, has been established to explore plans for increasing wages until 2030.
The decision to increase the minimum wage is part of the government's efforts to enhance the living standards of Egyptian citizens. The move is expected to benefit millions of workers and their families, providing them with a higher income to meet their needs.
Key points
- The minimum wage for private sector workers in Egypt will increase to 8500 EGP per month, effective January 1, 2027.
- The increase represents a 1500 EGP rise, or approximately 21.4%, from the current rate.
- The new minimum wage will benefit workers whose current salary is below 8500 EGP, while those earning above this threshold will not automatically receive a uniform increase.
