Introduction:

In alignment with recent presidential directives aimed at enhancing social justice and improving the standard of living for Egyptian citizens, the National Wages Council (“NWC”) convened on Sunday, 9 February 2025, to discuss raising the private sector’s minimum wage and determining the statutory annual increment percentage for 2025.

The meeting was attended by key government officials, including the Minister of Supply and Internal Trade, the Minister of Social Solidarity, the Minister of the Public Business Sector, the Minister of Labour, the Chairman of the National Council for Women, the Chairman of the Central Agency for Public Mobilization and Statistics, the Chairman of the Central Agency for Organization and Administration, the Director of the Labour Market Policies Unit at the Ministry of Planning, Economic Development, and International Cooperation, the Advisor to the NWC, and the Legal Counsel of the NWC.

Overview:

In response to recent presidential directives focused on social justice and improved living standards, the NWC has approved an increase in the private sector minimum wage. Accordingly, the NWC has decided to raise the minimum wage for private sector employees to EGP 7,000 (seven thousand Egyptian pounds), up from EGP 6,000 (six thousand Egyptian pounds), effective 1 March 2025, formalised under Ministerial Decree No. 15 of 2025.

Additionally, the NWC has set the minimum statutory annual increment for private sector employees at 3% of their social insurance subscription wage, with a minimum of EGP 250 (two hundred and fifty Egyptian pounds) for the 2025 fiscal year, instead of EGP 200 (two hundred Egyptian pounds) as per the most recent decree for 2024.

Furthermore, for the first time, the NWC has introduced a minimum hourly wage for employees working in temporary jobs, setting the net base rate at EGP 28 per hour.

Concerned Entities:

• The Ministry of Planning, Economic Development and International Cooperation.
• The National Wages Council.
• The Ministry of Labour.
• The Social Insurance Authority.

If you have any questions, please do not hesitate to contact our team members, Alia Monieb, Partner, Head of Employment, and Nada Khaled, Senior Associate.