File photo: Egypt s government employees (Photo: Al-Ahram)
Speaking in a phone interview with Extra News on Sunday, El-Homsani said the Ministry of Finance is conducting cost studies ahead of the increases, with priority set for public-sector employees in health, education, and state administration.
The proposed public-sector raises will be submitted to President Abdel-Fattah El-Sisi during Ramadan alongside the draft budget for fiscal year 2026/2027. Discussions will then be held with the National Wages Council on adjustments for private-sector workers.
El-Homsani said the measures form part of broader social protection efforts aimed at easing pressure on low- and middle-income households while supporting macroeconomic stabilization.
Linked to IMF-backed reform track
The wage plan comes as Egypt continues implementing reforms under its programme with the International Monetary Fund (IMF), which includes commitments to targeted social spending alongside fiscal consolidation.
The IMF’s Executive Board is scheduled on 25 February to review Egypt’s fifth and sixth programme assessments under the $8 billion Extended Fund Facility (EFF), as well as the first review of the $1.3 billion Resilience and Sustainability Arrangement (RSA).
The fund recently raised its forecast for Egypt’s real GDP growth to 4.7 percent in fiscal year 2025/2026, up from a previous 4.5 percent projection, and expects growth to reach 5.4 percent in 2026/2027 following a staff-level agreement with Egyptian authorities.
Parallel social support measures
Separately, the government is preparing to roll out a new social protection package worth more than EGP 40 billion ($1.3 billion) to support approximately 15 million families through the end of the current fiscal year on 30 June.
The package will be disbursed in two tranches—one before Ramadan and another ahead of Eid Al-Fitr—and includes additional support for farmers and domestic agricultural production.
El-Homsani said the government has raised the wheat procurement price to 2,350 Egyptian pounds per ardab, up from EGP 2,200, alongside allocating EGP 4 billion in extra support to offset price differentials during the harvest season beginning in April.
Officials say the combined wage and social spending measures are intended to cushion households from persistent cost-of-living pressures while maintaining the government’s fiscal reform path.
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