Egypt to raise public sector minimum wage to EGP 15,000 by 2030

Egypt aims to raise the national minimum wage for the public sector from 8,000 Egyptian pounds (around $145) to 15,000 pounds (around $270) by the 2029/30 fiscal year, Prime Minister Mostafa Madbouly announced on Saturday, a target set to benefit 4.5 million state employees as part of presidential recommendations emerging from the “Egypt Forum 2026.”

Delivering remarks at the closing session of the Egypt Forum 2026, Madbouly stated that the cabinet recognizes the severe burdens citizens have shouldered in recent years and intends to enhance living standards while boosting personal incomes over the coming period. “We realize that citizens still face difficult living conditions,” Madbouly said.

A government source familiar with the wage portfolio told Al Manassa that raising the baseline wage to 15,000 pounds by 2030 constitutes a core goal of the government’s new National Economic Transformation Program, widely termed the “post-IMF program.”

Authorities will finalize the draft review and present the plan for societal dialogue this coming December, incorporating final recommendations from the forum.

Addressing implementation mechanisms, the source explained that the government, through the National Council for Wages, will introduce gradual annual adjustments to salaries and the baseline threshold starting next fiscal year and running through fiscal year 2029/30 until it hits the 15,000-pound target, factoring in annual inflation levels to prevent wage increases from spurring price spikes.

The source, requesting anonymity, stressed that the state will absorb the financial burden of these upcoming salary differentials for public sector personnel through 2030. 

Private sector employers, by contrast, will face no binding mandate to match the increase, though the government plans to urge private firms to adjust wages voluntarily in alignment with price levels and surging living costs.

According to the official, the minimum wage will rise incrementally over the next three years at an annual rate of no less than 30% until reaching the 15,000-pound benchmark, noting that the cabinet is also evaluating fair pension adjustments calibrated to match state sector pay. 

The new government initiative seeks to ease financial strain on Egyptian households following years of severe economic setbacks attributed to external shocks, beginning with the COVID-19 pandemic and continuing through the Russian-Ukrainian war, the Israeli assault on Gaza, and the US-Iran war.

Looking ahead, the source noted that state authorities will prioritize creating jobs for youth, increasing employment levels, curbing joblessness, and upgrading public service delivery across healthcare, education and public housing.

The post-IMF framework aims to slash the average inflation rate to around 5% by the 2029/30 fiscal year, narrow the trade deficit to 2.3%, cut unemployment to 5.5%, and drive real gross domestic product growth to 6.8%. 

The blueprint also outlines expanding the domestic tax base without imposing fresh financial burdens on the public, the source told Al Manassa.

Last April 1, Madbouly had announced a 1,000-pound bump in the minimum wage to reach 8,000 pounds starting last July. Workers, trade unionists, employment policy experts, and labor advocates widely condemned that measure as disappointing, noting that it fell far short of soaring inflation rates and reneged on earlier cabinet pledges for a substantial pay hike following domestic fuel price increases.