Egypt Approves Raising Private Sector Minimum Wage to EGP 8,500 from January 2027
Egypt’s government has approved increasing the minimum monthly wage for private sector employees to EGP 8,500, effective January 1, 2027. The decision also sets a minimum annual periodic increase of 3% of the social insurance contribution wage, with a minimum value of EGP 350.
The decisions were approved during a meeting of the National Wages Council, chaired by Prime Minister Mostafa Madbouly.
Madbouly said improving wages remains a government priority in line with President Abdel Fattah El-Sisi’s directives to raise citizens’ incomes. He stressed the importance of ensuring private sector companies comply with the minimum wage, given the sector’s large share of Egypt’s workforce.
National Wages Council Reviews Wage Policy
The meeting was attended by several ministers and senior officials, including Deputy Prime Minister for Economic Affairs Hussein Eissa, Finance Minister Ahmed Kouchouk, Social Solidarity Minister Maya Morsy, Investment and Foreign Trade Minister Mohamed Farid Saleh, Labour Minister Hassan Raddad, Planning and Economic Development Minister Ahmed Rostom, and Industry Minister Khaled Hashem.
Representatives of relevant government agencies, business organizations, industrial associations, and labour unions also took part.
Madbouly said the meeting aimed to strengthen implementation of the private sector minimum wage and advance government efforts to improve workers’ incomes.
Council Structure Under the New Labour Law
During the meeting, the Minister of Planning and Economic Development reviewed the composition of the National Wages Council under Labour Law No. 14 of 2025.
Article 101 provides for a tripartite structure representing the government, employers’ organizations, and labour organizations. The council includes representatives from relevant ministries and public authorities, as well as six members representing employers’ organizations and six members representing the most representative labour unions.
Private Sector Employs 26.5 Million Workers
The meeting also reviewed key labour market indicators, including economic participation, employment, and unemployment rates.
The presentation highlighted a recovery in economic participation in recent years following a decline through 2020, while noting that a gap remains between male and female participation despite some improvement in women’s participation.
Planning Minister Ahmed Rostom said Egypt’s private sector employed around 26.5 million people inside and outside establishments in 2025, out of approximately 32 million employed people nationwide.
The total number of private sector establishments, including formal and informal businesses, reached nearly four million.
The meeting also reviewed inflation and real GDP growth rates as key indicators used in developing scenarios for setting private sector minimum wages.
Minimum Monthly Wage Set at EGP 8,500
The National Wages Council approved a minimum monthly wage of EGP 8,500 for private sector employees, effective January 1, 2027.
Finance Minister Ahmed Kouchouk said the government would present proposed scenarios for increasing citizens’ incomes over the coming years to reach agreement with private sector representatives.
Madbouly also directed the formation of a joint working group comprising government and private sector representatives within the National Wages Council. The group will study proposals for wage increases and improving workers’ incomes across different sectors through 2030.
Minimum Hourly Wage Raised to EGP 34
The council also approved setting the minimum net hourly wage at EGP 34 for workers engaged in temporary work by nature or those employed on a part-time basis.
Annual Wage Increase of at Least EGP 350
The council approved a minimum annual periodic increase for private sector employees starting in fiscal year 2027, in accordance with each establishment’s accounting fiscal year.
The annual increase must be at least 3% of the social insurance contribution wage stipulated under the Social Insurance and Pensions Law, and cannot be less than EGP 350.
