The Egyptian government recently issued Decree No.57/2021 (the “Decree”) setting, for the first time in Egypt, a minimum wage for private sector workers at EGP 2,400 per month.
The new minimum wage will be effective as of 1 January 2022.
The minimum wage is defined by the Egyptian Labor Law No.12 OF 2003 and refers to the lowest amount a worker can legally be paid for their work. The minimum wage threshold calculation should include both fixed and variable salary components. Prior to the Decree, a minimum wage was only set for only public sector workers. The minimum wage for public sector workers increased from EGP 2,000 to EGP 2,400 in July 2021, aligning the public and private thresholds.
The new minimum wage for private sector workers will not apply to companies facing economic difficulties preventing them from complying with the new regulation. Affected employers may submit an exemption request to the National Wages Council (through its affiliated unions) no later than 31 October 2021.
In addition, the Decree states that the minimum wage for private sector employees will increase annually (twice a year – July and January) at a rate of 3% of the employee’s basic salary, with a minimum increase of EGP 60.