Ahmed Kamel – Egypt Daily News
Egypt will increase the minimum monthly wage to 8,000 Egyptian pounds starting in July, Prime Minister Mostafa Madbouly announced, as part of a broader package of salary and social spending measures included in the country’s upcoming fiscal budget.
Speaking during a weekly cabinet press conference, Madbouly said the government had approved a 1,000 EGP increase in the minimum wage for the 2026/27 fiscal year, describing the move as part of a wider effort to ease cost-of-living pressures and strengthen income support.
The prime minister added that the government’s wage bill will rise by 21 percent in the new budget, marking what he described as the largest increase in public sector wages in many years. He also confirmed that regular annual salary increments will continue at a rate of 15 percent, alongside exceptional pay rises targeting key sectors, including education and healthcare.
The planned increase builds on a series of rapid wage adjustments over the past three years, reflecting persistent inflationary pressures and ongoing economic reforms. The last minimum wage hike came in March 2025, when the National Council of Wages raised the minimum for private sector workers to 7,000 EGP. That followed successive increases from 3,500 EGP in early 2024 and 6,000 EGP in mid-2024, part of an accelerated effort to improve living standards.
Earlier on Wednesday, Abdel Fattah el-Sisi met with Madbouly and senior economic officials, including Finance Minister Ahmed Kouchouk and Planning Minister Ahmed Rustom, to review progress on Egypt’s long-term economic strategy.
Discussions focused on shaping a post-reform economic vision following cooperation with the International Monetary Fund, including preparations for a national development program aimed at boosting competitiveness, increasing productivity, and ensuring macroeconomic stability.
Egypt is currently implementing an $8 billion Extended Fund Facility agreement with the IMF, signed in 2024 as an expansion of an earlier 2022 program. The reforms are designed to stabilize the economy, address foreign currency shortages, and attract investment.
In February 2026, the IMF approved the fifth and sixth program reviews, along with the first review under the Resilience and Sustainability Facility, unlocking approximately $2.27 billion in additional financing. This brought total disbursements under the program to around $5.2 billion.
The latest wage increase is expected to play a central role in the government’s efforts to balance economic reform with social protection, as authorities seek to mitigate the impact of rising prices while maintaining fiscal discipline and advancing structural reforms.
