Egypt Plans Above-Inflation Minimum Wage Increase, PM Says

Egypt is preparing to implement a significant increase in the minimum wage that will, for the first time, exceed the country’s inflation rate, according to Prime Minister Mostafa Madbouly.

Egypt's annual urban inflation rose to 13.4% in February 2026, and its minimum wage is 7000 Egyptian pounds. If we add approximately 15%, the new minimum wage would become around 8050 pounds.

Speaking at a press conference on Saturday, Madbouly said the government has already presented the proposal as part of the draft state budget for the upcoming fiscal year. The plan is expected to be resubmitted to President Abdel Fattah el-Sisi within days after incorporating additional measures requested by the president.

The proposed wage increase is part of a broader effort to ease pressure on household incomes following a prolonged period of high inflation that has eroded purchasing power across the country.

Madbouly noted that the president had called for further enhancements to the plan, particularly with regard to workers in the health and education sectors, two areas that have been under increasing strain in recent years.

The revised package is expected to include targeted improvements aimed at strengthening compensation for employees in these critical public services, though specific figures have yet to be disclosed.

The move comes as Egypt continues to grapple with inflationary pressures driven by global economic volatility, currency fluctuations, and rising energy costs. In this environment, real wages have struggled to keep pace with the cost of living, intensifying calls for government intervention.

By ensuring that the minimum wage increase surpasses inflation, policymakers appear to be signaling a shift toward more aggressive income support measures.

The final proposal will be submitted to the president in the coming days as part of the broader budget framework. If approved, the increase would mark a notable policy milestone, reflecting an attempt to restore real income growth after years of economic strain.