Egypt Increases Minimum Wage for Private Sector Workers to $97 per Month

In a bid to tackle the challenges of rising inflation, Egypt is set to increase the minimum wage for private sector workers by 300 Egyptian pounds ($9.72) to a total of 3000 pounds per month starting in July, according to the Ministry of Planning and Economic Development’s announcement on Tuesday.

The announcement follows Egyptian President Abdel Fattah al-Sisi’s recent indication that there will be no additional currency devaluations in the near future. This decision comes after three significant devaluations that slashed the pound’s value by approximately 50% against the dollar since Russia’s invasion of Ukraine in February 2022.

In May, urban inflation for the year reached 32.7%, almost hitting a record high, while core inflation climbed to 40.3% during the same period.

The official exchange rate has remained fixed at about 30.90 pounds to the dollar for more than three months, while on the black market it has weakened to about 39 pounds to the dollar.

In April, the government raised the minimum monthly wage for state workers to 3500 pounds ($113.45).

The Ukraine war triggered an exodus of foreign investors from Egypt’s treasury markets and a severe shortage of foreign currency.