{"id":589077,"date":"2023-06-21T00:00:00","date_gmt":"2023-06-21T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2023\/06\/21\/private-sector-minimum-wage-to-rise-11-in-july\/"},"modified":"2023-06-21T00:00:00","modified_gmt":"2023-06-21T00:00:00","slug":"private-sector-minimum-wage-to-rise-11-in-july","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2023\/06\/21\/private-sector-minimum-wage-to-rise-11-in-july\/","title":{"rendered":"Private-sector minimum wage to rise 11% in July"},"content":{"rendered":"

<\/span>Private-sector minimum wage to rise again:<\/span> The private-sector minimum wage will <\/span>rise by 11% from July after the National Council for Wages (NCW) decided to raise the threshold for the second time this year to support workers amid soaring inflation. In <\/span>a statement<\/a><\/span> yesterday, the Planning Ministry said that private-sector firms will have to pay their employees at least EGP 3k a month from 1 July, up from <\/span>EGP 2.7k<\/span>.<\/span><\/p>\n

This is the second time the council has hiked the minimum wage this year:<\/span> A 12.5% <\/span>increase <\/span>came into effect in January<\/a><\/span>, <\/span>raising the minimum wage from EGP 2.4k a month. The latest increase means that private-sector employees on the minimum wage will have seen their monthly income rise 25% in the past six months. <\/span><\/p>\n

BUT- This is still lower than the public-sector minimum:<\/span> Some members of the council <\/span>were<\/a><\/span>hoping<\/a><\/span>to raise<\/a><\/span> the minimum wage to EGP 3.5k and match the <\/span>new minimum for public-sector workers<\/a><\/span> introduced in <\/span>April.<\/span><\/p>\n

Annual bonuses remain unchanged: <\/span>New rules introduced in January oblige private-sector <\/span>firms to pay out annual bonuses equal to at least 3% of the employee\u2019s ins. (or a minimum of EGP 100) as of their 2023 financial years.<\/span><\/p>\n

Cushioning the blow from the economic crisis:<\/span> The minimum wage hike is the latest in <\/span>a<\/a><\/span>series of measures announced by the government<\/a><\/span> to soften the impact of the economic crisis. Three major currency devaluations have helped to push inflation to <\/span>a near-record high of 32.7% in May<\/a><\/span>, putting pressure on low-income households.<\/span><\/p>\n

Industry bodies aren\u2019t happy:<\/span>Mohamed El Bahey<\/span>, a member of the Federation of Egyptian <\/span>Industries (FEI), told us that without sector-specific exemptions companies will be forced to lay off workers to shoulder the higher wage costs. \u201cIt\u2019s expected that we see layoffs in sectors that depend heavily on untrained workers and those where workers earn lower salaries as a result of the new hike,\u201d said El Bahey, who heads up the pharma manufacturing division at the FEI.<\/span><\/p>\n

No<\/span> problem for the industrial sector: <\/span>The new hike will not present a challenge to businesses <\/span>in the industrial sector owing to the fact that many of the workers in this sector are already paid above the new minimum wage, El Bahey added.<\/span><\/p>\n

No<\/span> exceptions: <\/span>The new decision didn\u2019t exempt any sectors from complying with the new <\/span>minimu<\/span>m and all of the <\/span>old exemptions<\/a><\/span> have been scrapped, head of the NCW\u2019s complaints committee <\/span>Abdelhamid Belal<\/span> told Enterprise yesterday. Manpower Minister Hassan Shehata will request exemptions for a list of nonprofit organizations that he will present to the NCW, <\/span>Khaled El Fiky<\/span>, a member of the council\u2019s board, told Enterprise, without giving further details.<\/span><\/p>\n

Background: <\/span>The private-sector minimum wage is relatively new in Egypt. It was<\/span>introduced<\/a><\/span>at the beginning of FY 2021-2022<\/a><\/span> at EGP 2.4k a month. The raise earlier this year was <\/span>met with push back from companies<\/a><\/span> who complained that they couldn\u2019t afford the higher wage bill.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

The move puts the private-sector minimum wage up 25% in the last six months<\/p>\n","protected":false},"author":1,"featured_media":589078,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7206],"tags":[104,72,6508,235,1281,71,871],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-589077","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","tag-economy","tag-enterpriseam","tag-hassan-shehata","tag-labor","tag-manpower-ministry","tag-minimum-wage","tag-regulation-watch","wpautop","entry"],"acf":{"mongo_id":"16f16992-3020-4afa-b3bd-51f5b9b48391","order":"0","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2023\/6\/1037.jpg","photo_position":"above","homepage_title":"","full_issue_title":"Egyptian private-sector minimum wage to rise 11% to EGP 3k in July","related_issue":[589072],"teaser":"The move puts the private-sector minimum wage up 25% in the last six months","voice_url":"https:\/\/s3.us-east-1.amazonaws.com\/ent.news\/audio\/2023\/6\/.d4852b43-c7db-44b2-bd1b-cf4c64885b0a.mp3"},"yoast_head":"\nPrivate-sector minimum wage to rise 11% in July - 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An Ittihadiya statement yesterday said that the president had told the Finance Ministry to raise\u2026","rel":"","context":"In "Policy"","block_context":{"text":"Policy","link":"https:\/\/enterpriseam.com\/egypt\/category\/policy\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2022\/1\/225.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":576102,"url":"https:\/\/enterpriseam.com\/egypt\/2020\/11\/10\/private-sector-minimum-wage-delayed-by-covid-19\/","url_meta":{"origin":589077,"position":2},"title":"Private sector minimum wage delayed by covid-19","author":"enterpriseam admin","date":"10 November 2020","format":false,"excerpt":"LEGISLATION WATCH- A minimum wage won\u2019t be introduced to the private sector anytime soon thanks to covid-19, Al Watan reports, citing an unnamed source from the National Wages Council. The economic fallout from the pandemic makes a legally binding pay rise unfeasible given the losses suffered by factories earlier this\u2026","rel":"","context":"In "Speed Round"","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":563369,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/06\/29\/we-finally-have-a-private-sector-minimum-wage\/","url_meta":{"origin":589077,"position":3},"title":"We finally have a private-sector minimum wage","author":"enterpriseam admin","date":"29 June 2021","format":false,"excerpt":"Private-sector workers are getting a minimum wage: Employees of private-sector companies will for the first time receive a minimum wage starting from the beginning of next year, the Planning Ministry announced yesterday. From 1 January 2022, companies will need to pay workers at least EGP 2.4k per month, according to\u2026","rel":"","context":"In "Policy"","block_context":{"text":"Policy","link":"https:\/\/enterpriseam.com\/egypt\/category\/policy\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2021\/6\/360.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":578473,"url":"https:\/\/enterpriseam.com\/egypt\/2023\/01\/02\/private-sector-minimum-wage-rises-12-5\/","url_meta":{"origin":589077,"position":4},"title":"Private-sector minimum wage rises 12.5%","author":"enterpriseam admin","date":"2 January 2023","format":false,"excerpt":"New year, new private-sector minimum wage: The National Council for Wages has raised the minimum wage for private-sector workers by 12.5% amid soaring inflation. In a statement Thursday, the Planning Ministry said that private-sector firms now have to pay their employees at least EGP 2.7k a month, up from EGP\u2026","rel":"","context":"In "Economy"","block_context":{"text":"Economy","link":"https:\/\/enterpriseam.com\/egypt\/category\/economy\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2023\/1\/5.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":660297,"url":"https:\/\/enterpriseam.com\/egypt\/2025\/02\/10\/egypt-raises-the-private-sector-minimum-wage-to-egp-7k-starting-march\/","url_meta":{"origin":589077,"position":5},"title":"Egypt raises the private sector minimum wage to EGP 7k starting March","author":"enterpriseam admin","date":"10 February 2025","format":false,"excerpt":"PLUS- A minimum wage for part-time workers","rel":"","context":"In "Economy"","block_context":{"text":"Economy","link":"https:\/\/enterpriseam.com\/egypt\/category\/economy\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2025\/2\/828.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/589077","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/comments?post=589077"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/589077\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/issue\/589072"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media\/589078"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=589077"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=589077"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=589077"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=589077"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=589077"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}