A new pay system for teachers is in the works: The education and finance ministries are working on a new package of financial incentives for public school teachers, alongside tougher requirements for their private school peers, aiming to attract talent to the state education system and raise its quality.

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Egypt faces a shortage of around 469k teachers, Education Minister Mohamed Abdel Latif estimates. The new system will raise teacher pay fairly across the board, a government source told EnterpriseAM, adding that the executive regulations to last month’s new Education Act are currently being drafted.

What will the new system entail? The framework will hike teachers' wages and introduce performance-based incentives tied to strict evaluation criteria, the source told us, stressing that it aims to close the gap between supply and demand and build a skilled workforce. The new Education Act also tasks the prime minister with designing a comprehensive incentive scheme and establishes a special performance bonus for outstanding teachers — capped at 10% of staff per district each year — subject to cabinet approval.

A stopgap raise this year: Teacher compensation has already been raised 57% in FY 2025-2026 through bonuses and allowances, pending the new system, the source said. Spending on teaching bonuses nearly doubled to EGP 5.6 bn, while the pre-university development allowance rose to EGP 4.3 bn, according to official budget data seen by EnterpriseAM. However, the performance bonus fell to EGP 10.1 bn from EGP 11.0 bn. The Finance Ministry also issued a decision raising the complementary teacher incentive by 30% to EGP 2.1k a month, up from EGP 1.5k.

Curbing private tutoring: In return for the higher pay, the state plans to crack down on private tutoring, giving the minister or the relevant governor the authority to refer teachers to investigation if found giving private lessons or committing disciplinary violations, with penalties ranging from warnings to dismissal. Teachers will also receive a 50% base-salary allowance and an accreditation bonus that varies by seniority once they meet hiring conditions.

Wages take priority over capex: The education budget for the current fiscal year stands at EGP 315 bn; EGP 214.7 bn of which is earmarked for teacher and staff pay. Public investment allocations fell to just EGP 60 bn, with the state leaning on private-sector participation to fill the gap.

Teachers see hope, but problems remain: The prospect of a comprehensive wage overhaul has been met with support among educators, Khaled Anani, head of the teachers’ syndicate in El Saff Education Administration, told EnterpriseAM. He stressed that better pay is a must for retaining teachers, many of whom have left for better offers abroad or to teach in private schools or private tutoring centers. This exodus, he said, has undermined state curriculum reform.

Major challenges remain: Teachers’ incentives are still calculated against 2014 base salaries, while penalties are deducted against current pay — and retirement pensions remain low, according to Anani. He added that exam bonuses have also been cut from around EGP 7k to EGP 4.1k under the state’s payroll system.

Private schools face new mandates: The Education Ministry has also mandated private schools to adhere to the official minimum wage for all teaching and administrative staff. The cost burden will be heavy, especially for mid-tier schools that make up the bulk of the sector, Association of Private School Owners in Egypt head Badawi Allam told EnterpriseAM. He called for phased fee increases to help schools comply, suggesting a two-year rollout. Allam said the minister has emphasized the importance of raising private school teacher pay to safeguard education quality, while investors are asking for incentives to support demand in the sector.

Your top education stories for the week:

  • Six local universities ranked among the world’s top 1k in Shanghai’s 2025 ARWU index, led by Cairo University in the 401-500 bracket. Alexandria University, Ain Shams University, Mansoura University, Al Azhar University, and Zagazig University also made the cut. (Statement)
  • The Education Development Fund launched Egypt’s first diploma program to train teachers on Japan’s educational model Tokkatsu. Starting next academic year, the joint program with local universities and Japan’s Fukui University will offer dual certification and hands-on training in Egyptian-Japanese schools. (Statement)
  • Cairo and Sohag universities will both launch a bachelor’s in banking sciences starting in the academic year 2025-26, under partnership agreements with the Central Bank’s Egyptian Banking Institute. The program is the first of its kind in Egypt and is designed to build a pipeline of banking talent nationwide. (Statement)
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