The Egyptian government plans to raise the minimum wage for public sector employees to 15,000 pounds by the 2029/2030 fiscal year. The Egyptian Association of Tax Experts says this move is a significant shift in social protection policy. However, its effectiveness depends on a comprehensive economic equation that includes controlling inflation, ensuring funding sustainability, and reducing the gap with the private sector.
According to Ashraf Abdel Ghani, founder of the Egyptian Association of Tax Experts, the success of the government's positive targets is not measured by the abstract number on payrolls, but by its tangible impact on purchasing power and living standards. He emphasized the need to maintain financial discipline in the general budget and consider the capabilities of the business community.
Abdel Ghani noted that although the average inflation rate decreased to 13.3% in the 2025/2026 fiscal year, compared to 20.9% in the previous year, this decline reflects a slowdown in the rate of increase, not a decrease in prices. He stressed the need for intensified efforts to bring inflation down to the target range of 5-7% to protect Egyptian family income.
The structural challenge of a widening gap between public and private sector workers was also highlighted. Around 4.5 million public sector employees, or 14% of Egypt's total workforce, will benefit from the government's wage increase. In contrast, the private sector minimum wage has been 7,000 pounds since March 2025, requiring a flexible mechanism to raise private sector wages in line with economic vision and financial capacity.
To ensure a sustainable economic model that balances worker protection and business growth, Abdel Ghani proposed several economic mechanisms and suggestions. These include regular flexible reviews, balanced social dialogue, support for operational efficiency, and efficient tax collection.
Abdel Ghani suggested a specific package of economic measures, including a flexible review based on inflation and productivity growth, enhanced partnerships between government, business owners, and labor unions, and support for small and medium-sized enterprises.
The Egyptian Association of Tax Experts emphasized that the government's goal of raising the minimum wage must be accompanied by policies that ensure sustainable financing, control inflation, and support economic growth. The experts' proposals aim to achieve a balance between protecting workers' rights and supporting business growth.
Key points
- The Egyptian government plans to raise the minimum wage for public sector employees to 15,000 pounds by the 2029/2030 fiscal year.
- The move faces challenges, including inflation and funding sustainability.
- Experts propose a flexible review mechanism and balanced social dialogue to support the wage increase.
