The First Meeting of the National Wages Council Chaired by H.E. Dr. Rania Al-Mashat, Minister of Planning, Economic Development, and International Cooperation
09 February 2025
The First Meeting of the National Wages Council Chaired by
H.E. Dr. Rania Al-Mashat, Minister of Planning, Economic Development, and
International Cooperation
This is in line with the directives of H.E. President Abdel Fattah El-Sisi and given economic changes and their impact on the labor market:
The National Wages Council decided to raise the minimum wage for private sector workers to 7,000 EGP effective March 1, 2025.
The council also set the value of the periodic allowance for employees in the private sector with a minimum of 3% of the insurance subscription wage and not less than 250 pounds per month .. and determines for the first time the minimum wage for temporary work (part-time).
In light of the directives of H.E. President Abdel Fattah
El-Sisi, President of the Arab Republic of Egypt, to enhance social justice and
improve citizens’ living standards, H.E. Dr. Rania A. Al-Mashat, Minister of
Planning, Economic Development, and International Cooperation, chaired the
meeting of the National Wages Council to discuss the minimum wage for private
sector workers.
The meeting was attended by Dr. Sherif Farouk, Minister of
Supply and Internal Trade, Dr. Maya Morsy, Minister of Social Solidarity,
Engineer Mohamed Shimi, Minister of Public Enterprises, Mr. Mohamed Gibran,
Minister of Labor, Counselor Amal Ammar, Head of the National Council for
Women, Major General Khairat Barakat, Head of the Central Agency for Public
Mobilization and Statistics, Dr. Saleh Sheikh, Head of the Central Agency for
Organization and Administration, Dr. Hanan Nazeer, Director of the Labor Market
Policy Unit at the Ministry of Planning and Advisor to the National Wages
Council, and Counselor Shady Moussa – Legal Advisor to the National Wages
Council.
Representatives of labor unions, heads and representatives
of the Egyptian Federation of Industries, the General Federation of Chambers of
Commerce, the Egyptian Federation of Tourist Chambers, the Federation of Small,
Medium, and Micro Enterprises, the Egyptian Federation of Investors
Associations, and the Egyptian Federation of Construction and Building
Contractors also participated.
Key Economic Indicators: Growth and Employment
During the meeting, Dr. Rania Al-Mashat reviewed the key
indicators of economic growth and its positive development in the last quarter
of the 2023/2024 fiscal year, with this trend continuing in the first quarter
of the current fiscal year 2024/2025. This was driven by positive developments
in the non-petroleum manufacturing sector, which transitioned from contraction
to growth, with the industrial production index growing after a series of
declines that began in the third quarter of the 2021/2022 fiscal year.
She also highlighted the growth in private sector
investments in the first quarter of the current fiscal year, accounting for 63%
of total investments, with this positive momentum reflected in the Purchasing
Managers’ Index (PMI) for January 2025, which recorded its best performance in
four years, scoring 50 points, surpassing the neutral zone.
Al-Mashat also presented the current status of labor market
indicators, employment rates, and the most attractive sectors for labor. She
pointed out that the manufacturing sector has become one of the fastest-growing
sectors in terms of employment, along with financial intermediation, business
services, transport and storage, and utilities.
Decisions of the National Wages Council
The National Wages Council decided to raise the minimum wage
for private sector workers to 7,000 EGP, up from 6,000 EGP; effective starting
March 1, 2025.The council also determined the value of the periodic allowance
for private sector employees to be a minimum of 3% of the insurance
subscription wage and not less than 250 pounds per month.
For the first time, the National Wages Council established a
minimum wage for part-time work, with a net hourly wage of no less than 28 EGP,
as defined by labor law.
Aligning Policies with International Practices
Al-Mashat emphasized that raising the minimum wage is part
of the effort to respond to current economic developments, supporting economic
and social stability. She added that this aligns with international standards,
as the International Labour Organization (ILO) stresses the need for periodic
reviews of the minimum wage to protect household purchasing power and
accommodate gradual economic changes.
For his part, Mr. Mohamed Gibran, Minister of Labor, stated
that this decision aligns with the directives of H.E. President Abdel Fattah El-Sisi,
President of the Republic, to enhance social protection and improve workers’
living standards. He noted that the periodic bonus of at least 250 EGP
contributes to improving workers’ income and safeguarding their rights in light
of economic changes.
The minister explained that the Ministry of Labor would
issue a circular to all labor directorates across the country’s governorates,
detailing the executive rules of the decision and mechanisms for monitoring its
implementation in different establishments, in accordance with the provisions
of Labor Law No. 12 of 2003.
The minimum wage is a globally recognized tool for
protecting the wages of low-income workers. According to the Global Wage Report
2020-2021 by the ILO, 90% of the organization’s member states have a minimum
wage policy.
The minimum wage in Egypt’s private sector has evolved since it was first implemented in January 2022 to keep pace with ongoing economic changes. It started at 2,400 pounds, then increased to 2,700 pounds in January 2023, 3,000 pounds in July 2023, 3,500 pounds in January 2024, and 6,000 pounds in May 2024, now reaching 7,000 pounds as of March 2025. This is in accordance with the wage definition outlined in item (C) of Article (1) of the Labor Law, which includes the employer’s contribution to social insurance premiums.
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