Mohamed Abdel Rahman, 37 years old, works for more than 10 hours a day in the construction field, earning a daily wage that does not exceed 250 EGP ($5) at best, barely covering the needs of his family of five. Because his work is irregular, he often struggles to cover his basic expenses. He recounts to Zawia3: “I’ve been working in construction for over ten years, earning a daily wage ranging from 200 to 250 EGP ($4-$5) if work is available, but often an entire week goes by without finding any work. I have three children, many responsibilities, and everything has become expensive, from food to rent.”
Mohamed does not know if he is entitled to receive the minimum wage or not; all he hopes for is stable work that allows him to meet his monthly commitments. He says in his conversation with us: “Every time I hear about government decisions regarding raising the minimum wage, I wonder: Are we included in these decisions? The truth is that most of us are outside this framework. No one asks about us, and we don’t have any health or social insurance. My wife also works in house cleaning, but she doesn’t receive a fixed wage or insurance, yet we try to struggle to meet the minimum life requirements and strive to educate our children so they don’t face the same fate.”
Despite the Egyptian government’s approval of consecutive increases in the minimum wage, the latest being in March 2024 to reach 7,000 EGP ($140) per month for employees in the administrative apparatus of the state, starting from July of this year, millions of Egyptians are still excluded from these increases. They suffer from poverty, unemployment, and insufficient income to meet basic living needs.
According to data from the Central Agency for Public Mobilization and Statistics, poverty rates remain high in Egypt, with 29.7% of the population living below the poverty line, according to the income and expenditure survey of 2019-2020. Unofficial estimates suggest subsequent increases due to inflation waves and rising prices following global economic crises. Poverty is notably concentrated in Upper Egypt governorates, where areas such as Assiut, Sohag, and Minya report poverty rates exceeding 50% of the population in some areas.
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The Expelled from the Paradise of the Minimum Wage
Like Mohamed, Suad Ahmed, 44 years old, who sells vegetables in one of the streets of Assiut, dreams of a fixed salary that would enable her to provide a decent life for her two daughters after the death of their father. She says in her conversation with us: “Since my husband’s death fifteen years ago, I have been solely responsible for supporting my daughters. I worked as a vegetable seller on a small cart in the street, because I couldn’t find another alternative that would provide us with a livelihood. I follow the news and hear about decisions to raise the minimum wage, but I know very well that they don’t concern me. I work in the street, I don’t have insurance, and I don’t have a fixed salary. Sometimes the income is good, and other times I return home with losses or no income at all because some vegetables got spoiled.”
Last month, her monthly income did not exceed 3,000 EGP ($60), a sum that barely covers food, rent, and electricity bills, not to mention school and university expenses and other daily needs. “Unfortunately, simple groups like us, who struggle daily in the streets and markets, are not included in the state’s calculations, even though we are among the most in need of support and protection,” Suad explains.
As for Huda Ali, 50 years old, who works in house cleaning in the Haram area, she says that throughout 20 years of work, she has not received health or social insurance, nor any guarantee of a fixed income. Her husband abandoned her 10 years ago, and she supports four children, all in different educational stages. She tells us: “Despite the daily efforts and hard work, I only receive a daily wage ranging from 150 to 200 EGP ($3-$4), and sometimes I have to stay home if I get sick or if there are no job opportunities, which means a complete loss of income.”
She adds: “I hear a lot about government decisions to raise the minimum wage, but I know that I am not among the beneficiaries of it, and no one guarantees me this right. I live under constant pressure, fearing illness or stopping work, because that means losing my only source of livelihood. All I hope for is that the social protection umbrella expands to include us as well, as we are part of this society and work hard despite our difficult circumstances.”
Ahmed Said, 26 years old, a graduate of the Faculty of Commerce from Minya governorate, shares a similar story. He graduated three years ago and since then has been looking for a stable job, but he has only found temporary work or positions in the private sector with low wages that do not cover basic living needs. He tells us: “I worked in a clothing store for 2,000 EGP ($40) per month, without any social or health insurance, while I hear about government decisions to raise the minimum wage to 7,000 EGP ($140), figures that seem very far from our reality here in Upper Egypt, where job opportunities are scarce, salaries are low, and most small businesses are not committed to applying the minimum wage.”
He continues: “My family depends on me a lot, and we don’t have any other source of income. With the constant rise in prices, life has become more difficult. Unemployment in Upper Egypt is much higher than in other areas, and talk about job opportunities and improving wages doesn’t reach us, as if we are completely outside the state’s calculations.”
According to the figures, the majority of the workforce in Egypt remains outside the scope of these decisions, revealing the gap between the announced policies and the actual reality of the labor market. Among these groups are informal sector workers, who are estimated to number more than 12 million people, according to official data and international reports, representing nearly half of Egypt’s workforce. These individuals work in various fields such as daily labor, handicrafts, informal transportation, irregular agricultural activities, and street vendors, and often lack any form of insurance or social protection.
The list of groups not covered by the minimum wage also includes seasonal agricultural workers, domestic workers, and a large segment of freelancers, whose income depends on market conditions and daily fluctuations, without any guaranteed fixed income. Additionally, pensioners and individuals with low fixed incomes are practically excluded from the effects of wage increase decisions, especially amid the continuous rise in the cost of living.
Alongside the informal sector, there is a part of the workforce in the formal private sector itself that is not covered by the minimum wage, particularly in small and micro-sized enterprises that face economic challenges preventing them from adhering to the mandated minimum wage, despite the legal obligation. Despite the decisions of the National Wages Council, the mechanisms for monitoring and enforcement face difficulties in reaching all workplaces, especially in remote areas or those not subject to periodic supervision.
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Ineffective Decisions
For his part, labor researcher at the Egyptian Center for Economic and Social Rights, Hassan Barabri, believes that the real issue does not lie in the absence of minimum wage decisions, but in the lack of their application on the ground. He says in a statement to Zawia3: “The minimum wage is always mentioned in official decisions, but in reality, we do not see it applied, while we encounter workers daily in various sectors, such as services, private schools, and hospitals, who receive wages that do not even come close to the announced minimum.”
Barabri confirms that the official social discourse in this context often seems “just a slogan that does not actually reflect on people’s living conditions.” He points out that “looking at the public sector, we find that local sanitation workers earn salaries ranging from 1500 to 3000 EGP ($30-$60), and there are also workers with temporary contracts or in special funds in public hospitals or companies like Egypt for Trade, whose wages do not even reach the set minimum.”
Barabri also refers to the situation in public sector companies, emphasizing that it represents a stark example of this failure, adding: “The Syndical Services House recently issued a statement revealing that Ghazl El Mahalla company uses daily and temporary labor with wages far below 7,000 EGP ($140). In the private sector, the situation is much worse.” He also notes that security and guarding companies, which are present in all sectors, employ workers for 12 hours a day with salaries ranging from 2400 to 3000 EGP ($48-$60), and may reach 4000 EGP ($80) only in the best cases. In private and international schools, the vast majority of teachers’ contracts do not even reach the minimum wage at all; this is almost impossible.”
Barabri focuses on the crisis of industrial and investment zones, explaining that “in areas such as 10th of Ramadan, Shubra El Kheima, Minya, and QIZ Agreement companies, the minimum wage is not applied at all. Even in large factories, wages do not exceed 2500 to 5000 EGP ($50-$100), and may reach 6000 EGP ($120) only for supervisors. Most of these workers do not receive insurance or allowances, which deepens the crisis.”
He attributes this failure in application to two main factors: first, the Ministry of Manpower’s failure to perform its supervisory role, despite having a large network of inspection offices, and second, employers’ evasion, especially in the private sector, through various methods. For example, “some companies officially show that they pay 7,000 EGP ($140), but they deduct a large portion from workers under various headings, such as fines, insurance, or even supplies, so the actual amount workers receive is half of this figure or less.”
Barabri, the researcher at the Egyptian Center for Economic and Social Rights, confirms that the crisis of applying the minimum wage is not only related to difficult economic conditions, but is a direct result of the absence of supervision, and an implicit acceptance by the state of practices that violate the law and keep millions of workers without real protection.
Single Mothers: Double the Struggle
Despite the continuous changes in Egypt’s labor market, unemployment rates still represent one of the most significant economic and social indicators of the depth of the living crisis, especially among youth and women. According to the latest data from the Central Agency for Public Mobilization and Statistics for 2024, the general unemployment rate stands at around 6.6% of the total workforce, but this rate does not accurately reflect the most marginalized groups in the labor market. It hides much higher rates in specific sectors, geographical areas, and age groups.
According to the latest data from the Central Agency for Public Mobilization and Statistics for 2024, the unemployment rate among youth in the age group of 15 to 29 years is 14.9% of the total workforce in that age group, showing a 1% decrease compared to 2023. A gender disparity is clearly evident, as the unemployment rate among males is 9.8%, while it significantly rises among females to 37.1%. Subgroups within age categories show varied rates, with the unemployment rate for the 15-19 age group at about 12.2%, for the 20-24 age group at 19.1%, and for the 25-29 age group at 12.2%. Among those with intermediate, higher intermediate, and university qualifications, the unemployment rate is 18.7% in this age group, with a noticeable rise among females at 40.8% compared to 12.2% for males. These figures reflect the significant challenges facing youth in Egypt’s labor market, particularly women, despite improvements in the overall unemployment indicators.
These figures become more meaningful when linked to the reality of women breadwinners. According to data from the Ministry of Social Solidarity, about 15% of Egyptian families, nearly 4.5 million families, are solely supported by women without continuous support from the father or husband. Most of these women work in the informal economy: from selling food in the streets to working in homes or small workshops that do not guarantee any minimum wages or insurance. This makes women breadwinners one of the most vulnerable groups, especially given the decline in the state’s ability to provide direct financial support or effective social safety nets.
In many cases, women breadwinners are responsible for supporting more than one family member, including children, disabled individuals, or elderly parents, which increases the psychological, social, and economic pressure on them. Despite the importance of this group in the Egyptian social fabric, public policies still lack comprehensive tools that ensure their economic empowerment and provide a minimum standard of living for them and their families.
Mai Saleh, Director of the Women, Work, and Economic Rights Program at the New Woman Foundation, says to Zawia3 that the minimum wage crisis in Egypt is not only about the weak value but also about the lack of commitment to its application in large sectors of the labor market, including within formal establishments. She explains that many groups are not subject to the minimum wage, not only in the informal economy but also in registered companies and factories. There are agricultural workers, seasonal workers, and contract workers, as well as factory workers who still receive wages ranging from 3,000 to 4,000 EGP ($60-$80), even though the minimum wage was officially raised to 7,000 EGP ($140).
Mai highlights that the core of the problem is not only weak monitoring but also the “legal flexibility that opens the door for evasion and non-compliance.” She adds that “the very text of the decision allows for exceptions, such as applying it only to establishments with more than 10 workers, which automatically excludes about 90% of workplaces in Egypt, as they are small in size. Additionally, companies can submit grievances citing economic hardship, thus enabling them to evade compliance without consequences.”
She also points out a common method of evasion by employers, noting that many institutions list food, clothing, and transportation allowances as part of wages, making it appear to official authorities as though they are applying the minimum wage, while in reality, the cash value received by the worker is much lower than the actual minimum wage.
Saleh believes that linking the discussion solely to the minimum wage is no longer sufficient and calls for adopting the principle of “fair wages” as an alternative: “In light of inflation waves and the rising cost of living, talking about the minimum wage has become unrealistic. Fair wages are what ensure that a worker can live above the poverty line and meet their basic needs with dignity. This wage should be adjusted periodically according to inflation rates and the purchasing power of money.” She asserts that demanding the application of only the minimum wage may seem modest in the face of reality, adding, “Unfortunately, even those demanding the application of this minimum wage, who act in the public sphere, are sometimes subject to pressure or security accountability, while non-compliant entities are not held accountable, reflecting a clear paradox between rights discourse and policy realities.”
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Geographical Disparities
The poverty map of Egypt still reveals a reality of stark disparity between governorates, specifically between the Delta and Upper Egypt, and between urban and rural areas. According to data from the Central Agency for Public Mobilization and Statistics in the Income, Expenditure, and Consumption Survey (2019–2020), the national poverty rate stood at 29.7%. However, this general percentage conceals a significant geographical disparity.
The governorates of Upper Egypt are the most affected by poverty, with some areas recording rates exceeding 50%. For example, the poverty rate in Sohag exceeded 59.6%, in Assiut it reached 66.7%, and in Minya it was 54%. This high concentration of poverty in the southern part of the country is not only attributed to the lack of resources but also to weak infrastructure, lack of job opportunities, and low levels of education and healthcare services, leading to the entrenchment of a multi-dimensional poverty cycle.
On the other hand, the Greater Cairo, Alexandria, and Delta governorates report relatively lower poverty rates, but disparities within a single governorate can be wide, especially between affluent urban areas and informal settlements or peripheral villages. Independent studies also suggest that some poor urban areas may not be accurately captured in official statistics, meaning poverty in cities takes on more concealed forms, but it is no less severe.
It is noteworthy that poverty is closely linked to the absence of social protection and informal work, which intersects with groups excluded from the minimum wage law. Additionally, poverty rates are higher among female-headed households, and among those living in inadequate housing or without agricultural land holdings in rural areas. While the government points to a slight decrease in poverty rates compared to the 2017–2018 survey, the following years have witnessed successive economic shocks due to inflation, currency devaluation, and the impacts of global crises such as the COVID-19 pandemic and the war in Ukraine, making it likely that current numbers are higher than reported.
The poverty map of Egypt reflects not only economic disparity but also a flaw in the distribution of development and services, requiring structural intervention that goes beyond short-term monetary policies, taking into account the most vulnerable and marginalized groups and regions.
Finally, amid successive waves of raising the minimum wage in Egypt, millions of workers, single mothers, and unemployed people seem to remain on the other side of the nation. Decisions are announced in official conferences, but they fail to reach factory workshops, vegetable carts, cleaning homes, or graduate offices in Upper Egypt. The gap between the public discourse on social justice and the economic reality continues to widen, where entire lives are managed on wages that barely cover a day’s meal or rent for a room.
