In an attempt to improve workers’ productivity and general welfare, the National Wages Council approved a decision to raise the minimum wage for employees working in the private sector by 71% starting 1 May 2024.

The increase, which was approved by virtue of Decree No. 27 of 2024 (the “Decree”) sets the new minimum wage for private sector workers at EGP 6,000 from EGP 3,500. This marks the fifth time the minimum wage has been raised within a span of two years and the second increase in the year 2024.

Article (1) of the Decree underlines that the new minimum wage is determined based on the wage definition specified in the existing Labor Law No. 12 of 2003, which encompasses the employer’s contribution to social insurance. It is worth mentioning that micro enterprises employing ten or fewer individuals are exempt from the Decree.

Moreover, Article (2) of the Decree permits companies experiencing economic difficulties that may hinder compliance with the new minimum wage to submit a request for exemption (through their relevant trade union) by May 15, 2024. This request must include reasons for seeking an exemption along with supporting documentation to substantiate the same.

Authors: Hegui Taha, Partner and Farida Koura, Associate