The First Meeting of the National Wages Council Chaired by H.E. Dr. Rania Al-Mashat, Minister of Planning, Economic Development, and International Cooperation

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.

The First Meeting of the National Wages Council Chaired by H.E. Dr. Rania Al-Mashat, Minister of Planning, Economic Development, and International Cooperation