Egypt will increase the private sector minimum wage to EGP 7,000 from EGP 6,000 starting March 1, 2025. The National Wages Council will also implement a periodic EGP 250 bonus and set a minimum hourly wage of EGP 28 for part-time workers. These changes aim to enhance living standards and social justice, reflecting recent positive economic trends.
Effective from March 1, 2025, Egypt will increase the minimum wage for private sector employees to EGP 7,000 from EGP 6,000. The National Wages Council also established a periodic bonus of EGP 250 and introduced a minimum hourly wage of EGP 28 net for part-time workers. These measures are part of a broader effort to enhance social justice and improve living standards, as directed by President Abdel Fattah Al-Sisi.
Planning and Economic Development Minister Rania Al-Mashat led the National Wages Council meeting, discussing the rationale behind the wage increase. During the meeting, she emphasized positive economic indicators, including growth in the non-oil manufacturing sector and an increase in the industrial production index, which reflect a recovery in both the economy and the labor market.
Al-Mashat highlighted that private sector investments made up 63% of overall investments in the first quarter of the fiscal year 2024/2025. She pointed out that the January 2025 Purchasing Managers’ Index (PMI) reached 50 points, indicating a shift above the neutral level, suggesting optimism about economic conditions, which helped justify the minimum wage adjustments.
The increase is designed to respond to economic changes, facilitating both economic and social stability. Minister Al-Mashat stated that this wage enhancement aligns with International Labour Organization (ILO) recommendations for regular wage reviews. Such adjustments protect workers’ purchasing power and enable adaptation to evolving economic contexts.
Labour Minister Mohamed Gebran confirmed that the changes coincide with President Al-Sisi’s directives regarding social protection and improving the populace’s living standards. He noted that the EGP 250 bonus will support workers amid economic transformations. The Labor Ministry plans to disseminate guidelines for local directorates regarding the implementation and oversight of this new policy.
The decision to raise the minimum wage is influenced by Egypt’s evolving economic landscape and aims to provide a safety net for workers, especially in the private sector. Since the introduction of the minimum wage in January 2022, Egypt has made several incremental adjustments to address inflation and enhance worker welfare. Recent economic recovery trends, including growth in manufacturing and an uptick in investments, further support the rationale behind this increase.
The Egyptian government’s decision to raise the minimum wage to EGP 7,000 exemplifies its commitment to improving workers’ conditions and responding to the changing economic environment. With additional measures like a periodic bonus and minimum hourly wage for part-time work, these steps are poised to uplift citizens’ living standards and promote economic stability amid challenges.
Original Source: www.dailynewsegypt.com
