Egypt implements 7 consecutive minimum wage raises in 4 years
The Egyptian government has pursued a series of reforms aimed at enhancing the welfare of its citizens amidst economic challenges. While radical overhaul remains pending, recent legislative amendments have been pivotal in augmenting benefits for workers and retirees across both public and private sectors.
Since 2016, the government has embarked on a trajectory of wage and pension restructuring, coupled with periodic increases to mitigate the impact of economic downturns such as inflation and unemployment. Notably, the budget allocation for wages and workers' compensation saw a significant rise in the fiscal year 2023/2024, reaching approximately LE 470 billion.
Minimum wage increments have been a cornerstone of these efforts, with seven consecutive raises implemented since February 2019. The latest adjustment, announced in March 2024 by President Abdel Fattah El-Sisi, raised the minimum wage for state employees to LE 6,000.
This sustained upward trend in minimum wage adjustments reflects the government's proactive stance in alleviating financial strain on its populace. Over the past four years, the minimum wage has surged from LE 1,200 to 6,000, representing a remarkable increase of approximately 400 percent, with each raise strategically implemented to alleviate citizens' burdens.
Furthermore, Egypt's social protection framework extends beyond contributions-based systems to encompass a range of cash support programs targeted at vulnerable groups. These initiatives, designed to improve short-term living standards and foster economic empowerment, offer assistance to those most in need, including emergency relief in times of crisis.
Efforts to refine social protection mechanisms have also witnessed partial modifications aimed at transitioning from relief-oriented assistance to avenues fostering economic self-sufficiency among beneficiaries. This strategic shift underscores Egypt's commitment to not only addressing immediate needs but also empowering vulnerable communities for sustained socio-economic progress.