Egypt Will Increase the Minimum Wage for Public Sector Employees Despite Economic Difficulties

Beginning in July, Egypt will increase the minimum pay for employees in the public sector to 7,000 Egyptian pounds.

Beginning in July, Egypt will raise the minimum salary for employees in the public sector to 7,000 Egyptian pounds ($138.50) per month, matching the minimum wage established earlier in February for the private sector. At a news conference on Wednesday, Finance Minister Ahmed Kouchouk made this announcement.

The pay adjustment is a component of a larger social protection program that will go into effect in July along with the start of the new fiscal year. The project, which is anticipated to cost 80–85 billion Egyptian pounds ($1.6–1.7 billion), aims to protect the populace from financial troubles.

The Egyptian government has unveiled a temporary relief package worth 35–40 billion Egyptian pounds ($692–791 million) ahead of the anticipated wage increase. This package, which runs from March to June, includes increased money for the nation’s ration card system, which will help 10 million of the most needy households in March and April.

The minimum wage has been gradually increased by the government, but because of ongoing inflation, its actual worth has decreased over time. The minimum wage was raised by 50% to 6,000 pounds per month in February 2024, which was equal to $194 at the time. However, the purchasing power of these rises has been reduced due to the continuous devaluation of the Egyptian pound. Since the Russian invasion of Ukraine in early 2022, Egyptians have been struggling with skyrocketing inflation. Foreign investors withdrew billions of dollars from Egyptian treasury markets as a result of the war, which made the nation’s economic problems worse.

Egypt’s annual urban consumer price inflation was 24% in January 2025, down slightly from 24.1% in December 2024.

The nation is experiencing a protracted economic crisis that is characterized by a persistent lack of foreign exchange. Egypt has applied for a $8 billion loan from the International Monetary Fund (IMF) in order to stabilize its economy. According to the IMF agreement, Egypt must implement significant economic changes, such as lowering the role of the state in the economy, increasing the involvement of the private sector, and implementing a flexible exchange rate system. Although these policies are intended to stabilize the economy and draw in foreign investment, they also pose difficulties for Egyptians who are already dealing with exorbitant living expenses.

In order to give millions of Egyptians short-term financial comfort as the nation navigates this economic crisis, the impending minimum wage increase and relief measures are viewed as crucial moves. Long-term fixes will be essential for stabilizing the economy and raising living standards, though, given the ongoing inflation and currency devaluation.