Egyptian Minister of Labor, Hassan Raddad, announced that the National Wages Council, in its first meeting under its new formation, agreed to raise the minimum wage for private sector workers to 8500 pounds. This move is part of the government's efforts to reduce the wage gap between the public and private sectors. The new minimum wage comes after the government sector's minimum wage was increased to 8000 pounds in July 2026.
The decision to raise the minimum wage for private sector workers was made to address the existing wage disparity between the two sectors. Previously, the minimum wage for the private sector was 7000 pounds, implemented in March 2025. Minister Raddad emphasized that the government's goal is to ensure fair wages for workers in both sectors. The new minimum wage is expected to benefit thousands of private sector workers.
The Ministry of Labor plays a crucial role in enforcing the new minimum wage through its inspection teams. These teams, spread across Egypt's 27 governorates, conduct regular inspections to ensure compliance with labor laws. The inspections not only focus on receiving individual complaints but also involve regular on-site visits to various establishments, companies, and industrial areas.
Minister Raddad highlighted the importance of the inspection system in protecting workers' rights. The system takes into account the human and psychological aspects of workers who may fear reporting violations due to concerns about their job security. The ministry's approach prioritizes preventive measures, and in cases of non-compliance, it focuses on educating business owners about the relevant laws and regulations.
The minister also addressed the rights of workers in the contracting sector, emphasizing that they are entitled to the new minimum wage if they have a formal employment contract. He stressed that these workers are fully protected by the law and are subject to institutional oversight. The ministry ensures that workers in this sector receive fair treatment and are not exploited.
Regarding temporary and contract workers, Minister Raddad stated that their rights are governed by strict legal regulations. The ministry takes all reports and complaints related to these workers seriously, aiming to identify any existing violations and find comprehensive solutions to protect their rights. The government is committed to ensuring that all workers, regardless of their employment status, receive fair treatment.
The new minimum wage is a significant step towards achieving social justice and fairness in the Egyptian labor market. The government's efforts to reduce the wage gap between the public and private sectors are expected to have a positive impact on the lives of thousands of workers. The Ministry of Labor will continue to monitor the implementation of the new minimum wage and take necessary measures to ensure compliance with labor laws.
Key points
- The Egyptian government has raised the minimum wage for private sector workers to 8500 pounds, aiming to reduce the wage gap between the public and private sectors.
