Khaberni - Egypt has decided to raise the minimum wage for government sector employees by 14.2%, an increase of 1,000 Egyptian pounds, to reach a total of 8,000 pounds starting from July, according to what the Prime Minister Mostafa Madbouly announced.
This step comes amidst ongoing inflationary pressures, driven by fuel and gas price increases ranging from 14% to 30% in the latest hike over the past twelve months.
Madbouly clarified in a press conference, today Wednesday, that the upcoming budget has been approved to increase wages by about 21%, which is the highest increase in a long period, besides a periodic increment of 15%. Additional increments for employees in the education and medical sectors have also been approved alongside the new rise.
The Egyptian government aims in the budget project for the upcoming fiscal year 2026–2027 to increase expenditures by 13.2% annually to reach about 5.1 trillion pounds, against a revenue growth of 27.6% to about 4 trillion pounds.
It also strives to reduce the overall deficit by about 1.2% of the GDP to reach 4.9%. The fiscal year in Egypt begins in July and ends at the end of June of the following year.
The government's move coincides with about a month since the war between the United States, Israel, and Iran, which has caused disruptions in global supply chains and increased energy, shipping, and insurance costs.
Even before the outbreak of the war, the annual inflation rate in Egyptian cities rose to 13.4% in February from 11.9% in January, according to data from the Central Agency for Public Mobilization and Statistics.
The exchange rate of the Egyptian pound has also declined by about 12.5% since the beginning of March, approaching 55 pounds per dollar compared to about 47.5 pounds before the crisis erupted.
In July 2025, the government raised the minimum wage for public sector employees to 7,000 pounds ($138.50) per month, with a pension increase of about 15%.
The total number of workers in Egypt is about 15.2 million, of whom 14.3 million work in the private sector, accounting for 93.9%, while the number of employees in the public and public business sectors is about 923,000 workers, representing 6.1% of the total workforce, according to the latest data issued by the Central Agency for Public Mobilization and Statistics.
In March 2025, the National Council for Wages, headed by Rania El-Mashat, Minister of Planning and Economic Development and International Cooperation, decided to increase the minimum wage for the private sector to 7,000 pounds compared to 6,000 pounds.
