Amendment to the Minimum Wage of Private Sector Employees

June 22, 2023

Introduction

On 19 June 2023, the National Wage Council (the "NWC") held a meeting chaired by Dr Hala El-Said, the Minister of Planning and Economic Development, in the presence of, among others, Dr Hassan Shehata, the Minister of Labour, Dr Saleh El Sheikh, Head of the Central Agency for Organization and Administration and Mr Khairat Barakat, Head of the Central Agency for Public Mobilization and Statistics, to discuss Egypt's current economic situation, high inflation rates and its impact on the employees' interests.

Overview

The NWC has raised the minimum wage of private sector employees in line with the public policy of securing a decent living for employees throughout the current economic changes and high inflation rates while achieving a balance between the interests of employees and employers.

Based on the above, and in line with the decisions issued by the NWC, the Ministry of Planning and Economic Development issued Decree No. 46 of 2023 on 21 June 2023, raising the minimum wage of private sector employees from EGP 2,700 (two thousand and seven hundred Egyptian pounds) to EGP 3,000 (three thousand Egyptian pounds) effective 1 July 2023.

Concerned Entity

The Social Insurance Authority.

Our Take

Employers must ensure due compliance with the provisions of the above requirements to avoid any potential employment claims that may be raised against them.

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