Egypt to mandate first-ever private sector minimum wage starting 2022

Doaa A.Moneim , Tuesday 21 Dec 2021

Egypt is set to mandate a minimum monthly wage of EGP 2,400 for private sector employees with a monthly bonus worth 3 percent of the employee’s insurance starting 1 January 2022, Egypt’s National Wages Council (NWC) announced on Tuesday.

An employee counts Egyptian pounds in a bank in Cairo (Photo: Reuters)

This is the first time that Egypt has mandated a minimum wage for the private sector.

The NWC has said that 2,855 private sector entities that are still suffering from the negative impacts of the COVID-19 pandemic will be exempt from applying the minimum wage through mid-February 2022.

These entities had submitted applications to the NWC asking to postpone implementing the minimum wage, the council said.

Hala El-Said, the NWC’s chairwoman and Minister of Planning and Economic Development, said that the private sector minimum wage is an important and unprecedented step that aims to ensure a proper living standard for all employees in the sector.

In July 2021, the government raised the minimum wage for the public sector to EGP 2,400 a month, up from the previous EGP 2,000. In mid-2019, Egypt increased its minimum wage for the public sector to EGP 2,000, up from a previous EGP 1,200.

Egypt has adopted a strategy that aims to encourage the private sector to play a greater role in the country’s development process.

A number of presidential initiatives are also being implemented by the government and Central Bank of Egypt to support private sector, including in tourism, industry and agriculture.

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