Egypt raises minimum public sector wage by 50%

The minimum monthly wage for Egypt’s public sector employees will be increased by 50 per cent, to 6,000 Egyptian pounds ($194.17) from the beginning of March, amid rising inflation in the most populous Arab nation.

The wage increase is part of a new “emergency social support package” launched by President Abdel Fattah El Sisi. It comes at a time when Egypt’s population of 105 million is grappled with the continued deterioration of the economy.

The package announced on Wednesday also includes “periodic raises” for public sector workers ranging between 10 per cent and 15 per cent, the president’s office said. A portion of the package will go towards supporting teachers, whose wages will be raised by varying amounts, as well as university-level educators.

Wages for doctors and nurses working in the public sector will also be increased, the government said. More than 120,000 jobs in the medical, education and administrative sectors, will also be opened under a 6-billion-pound initiative, according to a spokesman for Mr El Sisi.

Pensions for 13 million citizens will also be increased by 15 per cent, starting next month. Social welfare grants from Takaful and Karama, a programme that gives monthly stipends to orphans and the elderly, will also be increased by 15 per cent.

The ceiling for taxable income was also raised from 45,000 pounds a year to 60,000 pounds.

An economic downturn in the wake of the pandemic and the Russia-Ukraine war has continued to worsen in Egypt. An ensuing foreign exchange crunch has slowed down many of the country’s industries, most of which rely on the US dollar for imported components.

The Egyptian pound has depreciated by more than 50 per cent against the dollar since 2022.