Egypt announces bylaws of new minimum wage system for public employees

Ahram Online , Thursday 27 Apr 2023

Minister of Finance Mohamed Maait has announced on Thursday the bylaws for implementing the raises in the new minimum wage system that were decreed by President Abdel-Fattah El-Sisi in March.

Minimum Wages
A public sector employee standing before the teller.


Maait explained, in a statement, further the decree for setting minimum monthly wages for premium-category (senior director-general) employees and high-category (director-general) employees at EGP 10,500 and EGP 8,500, respectively.   

The monthly minimum wages for general managers and first-category employees were set at EGP 7,000 and EGP 6,500, respectively.

Moreover, the new rules fixed the wages for second-, third-, fourth-, fifth-, and sixth-category employees at EGP 5,500, EGP 5,000, EGP 4,500, EGP 4,000, and EGP 3,500, respectively.

Those with master's and Ph.D. degrees will have minimum wages of EGP 6,000 and EGP 7,000, respectively. These new rules will be implemented from 1 April 2023. Under the new system, public sector employees will be entitled to supplementary incentives equal to the difference between their total wage and the new minimum wage, accounting for applied bonuses and allowances.

In March, President Abdel-Fattah El-Sisi announced the raising of the minimum wage for government employees to EGP 3,500 and pensions by 15 percent - as part of a wide-ranging social package to alleviate ramifications of the global economic situation on the public - starting 1 April.

El-Sisi ruled a nearly 50 percent increase in appropriations for various subsidy and social protection programmes in the budget for FY2023/24 in order "to ease the burden on citizens during the global inflation wave."

However, the economic situation is challenging for most Egyptians as headline inflation remained in double digits since the spring of 2022, jumping to a five-year high of 33.9 percent in March of this year. The core inflation rate fell below 40 percent in March, according to the latest figures released by the CBE.

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