Empowering Workers: A Leap in Egypt’s Private Sector Minimum Wage

In an effort to bolster employee rights and promote economic stability, the Ministry of Planning and Economic Development (the “Ministry”) has introduced a significant policy change. Effective May 2024, Decree No. 27 of 2024 establishes the minimum wage for the private sector at EGP 6,000, a substantial increase from the previous minimum wage of EGP 3,500. This change will be calculated based on the defined wage outlined in the labour law.

Recognising the diverse economic circumstances faced by businesses, the decree includes provisions for exemptions. Establishments experiencing financial or economic hardship may apply for exemption from the minimum wage requirement through the designated procedures outlined by the Ministry.

Additionally, small enterprises with fewer than ten employees are granted exemption from following the newly established minimum wage. This measure provides flexibility to businesses operating on a smaller scale. This decision represents a crucial step forward in promoting equitable labour practices while simultaneously supporting the economic viability of private sector enterprises.

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Al Tamimi & Company’s Employment and Incentives team holds extensive experience in labour matters within the Middle East and North Africa region.