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Egypt Raises Private Sector Minimum Wage to EGP 6,000

April 8, 2024
in News
Egypt Raises Private Sector Minimum Wage to EGP 6,000
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The minimum wage for private sector workers in Egypt will increase to EGP 6,000 (USD 127) in May, according to a statement from the National Council of Wages on Sunday, 7 April.

This increase aligns with President Abdel Fattah Al-Sisi’s commitment to supporting workers, the statement added. It aims to improve their quality of life and create a better work environment, ultimately benefiting both employees through higher living standards.

Following the National Wages Council’s decision, Minister of Labor Hassan Shehata announced during a meeting at the headquarters of the Ministry of Planning and Economic Development that the Ministry will issue a directive to its regional offices across all Egyptian governorates.

This directive will detail the “implementation guidelines” for the new minimum wage and outline procedures for monitoring compliance within establishments at the designated times. This aligns with Labor Law No. 12 of 2003.

The new minimum wage of EGP 6,000 represents the fifth increase in two years. Since January 2022, the wage has risen from EGP 2,400 to EGP 3,500 in January 2024, with additional increases in January and July 2023.

Egypt recently undertook a series of actions to address its financial challenges. Firstly, the Central Bank implemented the nation’s largest-ever interest rate hike. This significant increase, aimed at curbing inflation and attracting foreign investment, makes borrowing more expensive for businesses and individuals.

Secondly, Egypt allowed its currency, the Egyptian Pound (EGP), to significantly devalue by over 38 percent. The primary motivation behind these measures is to secure additional financial aid from the International Monetary Fund (IMF) and other lenders. Egypt recently signed an expanded loan program with the IMF, increasing an existing loan program by USD 5 billion.

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Copyright for syndicated content belongs to the linked Source : EgyptianStreets – https://egyptianstreets.com/2024/04/07/egypt-raises-private-sector-minimum-wage-to-egp-6000/

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