The Egyptian government has decided to increase the minimum wage for private sector workers to 8500 pounds, starting January 2027. This move was announced by Prime Minister Mostafa Madbouly on Sunday, November 15, 2026. The decision has raised questions about the ability of companies and factories to absorb the increase, given the current high production costs and economic pressures.
The textile industry has welcomed the decision, with some workers already earning higher wages. Smah Hakil, a member of the Cairo Chamber of Commerce's ready-made clothing committee, stated that the sector's workers receive wages above the minimum due to the production-based nature of their work. Some workers, including those in cutting and sewing, can earn up to 50,000 pounds per month, depending on their productivity.
The decision has also been positively received by suppliers of raw materials to factories, including those producing paper products. Mahmoud Darwish, owner of a company supplying raw materials to tissue factories, expressed support for the decision, citing the need for low-income workers to keep pace with rising living costs. He confirmed that his company will implement the new minimum wage.
The poultry industry has also welcomed the decision, despite facing losses due to high raw material costs. Ahmed Nabil, head of the table eggs committee at the Egyptian Poultry Producers Union, stated that the sector will implement the new minimum wage from January 2027. He emphasized that delaying implementation would lead to workers demanding higher wages.
The home appliances sector has also accepted the decision, although it is experiencing a decline in sales due to economic pressures. Ashraf Hilal, head of the electrical appliances committee at the Egyptian Federation of Chambers of Commerce, stated that the sector will implement the new minimum wage, despite the challenges it faces, including high inflation and reduced purchasing power.
The government's decision aims to alleviate the financial burden on low-income workers, who have been significantly affected by the recent rise in prices. Industry representatives have expressed their commitment to implementing the new minimum wage, despite the economic challenges they face.
The implementation of the new minimum wage is set to begin in January 2027, and the government has not announced any plans to postpone or reconsider the decision. The move is expected to have a positive impact on low-income workers, but its effects on businesses and the broader economy remain to be seen.
Key points
- The Egyptian government has raised the minimum wage for private sector workers to 8500 pounds, effective January 2027.
- The decision has been welcomed by various industries, including textiles, poultry, and home appliances.
- Industry representatives have committed to implementing the new minimum wage, despite economic challenges.
