In a significant move to offset soaring inflation in Egypt, the Egyptian National Wages Council declared in a session chaired by the Minister of Planning and Economic Development in April that the minimum salary would increase significantly to 6,000 Egyptian Pounds (EGP) per month. The decision came to reflect the government’s commitment to safeguarding the interests of employees amidst recent economic developments. This change is set to take effect in May 2024..
Table of content:
what increase private sector minimum wage to in 2024 ?
When will the minimum wage increase be implemented in the private sector?
New minimum wage for private sector employees in 2024
This new benchmark salary has been the result of a sustained progression. Starting from EGP 2400 in January 2022, the minimum wage was increased gradually to EGP 2,700 in January 2023. In July of the same year, the minimum wage was raised once again by ( mped) to EGP 3,000. Subsequently, it was raised to EGP 3,500 as of January 2024, culminating to the current elevation to EGP 6,000, encompassing all components, including the employer’s share in social security contributions except for small-scale projects with less than ten employees.
Egypt to increase private sector minimum wage to LE 6,000 per month effective May 1, 2024
Considering Egypt’s economic changes and high inflation rates, the Egyptian government is set to continue improving wage levels in 2024 to alleviate the financial burdens faced by public officials as well. The monthly wages of thepublic employees and wages of private sector employees have been increased to EGP 6,000. Moreover, Egypt grants a tax exemption of EGP 20,000 for all residents, regardless of their income. This is due to the fact that the annual personal tax exemption has been raised by virtue of Law No. 30 of 2023 which increased once again in early 2024 from EGP 15,000 to EGP 20,000.
As Egypt continues to navigate through certain economic challenges, the above-mentioned increases in the minimum wages and tax exemptions reflect pro-active actions ensuring the maintenance of living conditions for the public and private sector employees. In doing so, conducive work environment is being fostered for increased work productivity.
