For over a decade, minimum wage increases in Egypt have turned into an unequal race between numbers and living conditions. These raises have often been announced as achievements aimed at boosting purchasing power, but in reality, they were merely attempts to keep pace with inflation, which erodes income before it even reaches citizens’ pockets. In this uneven battle between wages and prices, the real value of the Egyptian pound has declined, making these wage increases nothing more than a theoretical compensation for actual losses. Meanwhile, the average citizen continues to face an imbalanced economic equation, where wages do not grow at the same pace as the rising cost of living, trapping them in a vicious cycle where income depletes before achieving even a minimal level of stability.
The National Council for Wages in Egypt announced an increase in the minimum wage for private sector employees from 6,000 pounds ($120) to 7,000 pounds ($140), effective March 1, 2025. The council also set an annual raise of 3% of the social insurance wage, with a minimum increase of 250 pounds ($5) per month. For the first time, the council established a minimum hourly wage for temporary (part-time) workers, ensuring it does not fall below 28 pounds ($0.56) per hour, in accordance with labor law definitions. Minister of Planning, Economic Development, and International Cooperation Rania Al-Mashat stated that these decisions reflect responsiveness to current economic developments and align with international standards.
Tracking the evolution of minimum wages in Egypt shows that successive increases have not led to a tangible improvement in living standards, as they have been accompanied by a rapid surge in prices. With the declining purchasing power of the Egyptian pound, the critical question remains: Do these wage increases represent real economic progress, or are they merely an attempt to keep up with runaway inflation without making a real difference in citizens’ lives?
Despite the nominal doubling of the minimum wage over the years, its real value has declined. In 2014, a 1,200-pound ($24) salary was equivalent to $170. By 2023, even after increasing to 3,000 pounds ($60), its value had dropped to $130. Today, even with a new increase to 7,000 pounds ($140), it remains lower than it was 11 years ago.
Barely Getting By
At a ceramic factory in Cairo, a weary, middle-aged worker sits scrolling through his phone, as if searching for news that might change his reality. But he no longer expects anything—except the end of the month, when a new struggle begins to put food on the table.
“I don’t even make 6,000 pounds ($120), so how am I supposed to celebrate the increase to 7,000 pounds ($140)?” he asks. Preferring to remain anonymous for fear of losing his job, he explains that despite seven years of experience at the factory, his salary has never reached the announced minimum wage. Meanwhile, his family’s expenses keep rising, as he struggles to support two children—one in school and the other not yet four years old.
“Half of my salary goes to electricity bills, rent keeps going up, and school expenses have become unbearable,” he adds, noting that his food budget barely covers essentials. Meat is a luxury, poultry is purchased sparingly, and fruit is reserved for special occasions.
Despite the hardships, he cannot protest or demand a raise. He knows that many others would take his job for even less pay. “If we speak up, we know what happens—we lose our jobs,” he says bitterly. Then, after a pause, he adds:
“My only wish? That one day, I won’t have to calculate every cost a hundred times before buying anything.”
Salary Runs Out Before It Reaches My Hands
In a modest rented apartment, Ahmed lives with his wife and their three children—two in elementary school and the youngest still an infant. Each month, he faces the same impossible equation: “How will we make it through the coming days?” Living costs—from rent and utility bills to school expenses—keep rising, but his salary remains unchanged, barely covering the bare minimum of necessities.
Some days, he returns home empty-handed, avoiding his wife’s questioning looks, coming up with excuses when his children ask about a toy they saw at a friend’s house. He recounts bitterly:
“My eldest son dreams of a bicycle. He asked for it on his birthday, and I told him, ‘next month.’ Six months have passed, and I’m still repeating the same promise.”
Even discussing wage increases at the factory where he works feels like a “red line”—no one dares to bring it up because they already know the outcome.
“If I even mention it, I’ll be replaced the next day,” he says, pointing out that the factory that makes millions does not pay its workers enough to cover their basic needs.
When asked about his greatest wish, he falls silent for a moment, then whispers with sorrow:
“I just wish for a single day where I don’t have to worry about how to pay for tomorrow.”
A Positive Step on Paper
With the Egyptian government’s announcement of an increase in the minimum wage to 7,000 pounds ($140), debate has resurfaced over whether this amount is sufficient to cover the basic needs of Egyptian citizens and whether the private sector will comply with the decision amid current economic challenges. Dr. Abdel Nabi Abdel Muttalib, an economic expert, describes the decision as a positive step on paper, but raises several questions about its practical implementation, particularly in the private sector. He notes that raising the minimum wage was necessary to keep up with inflation, but it does not address the root of the problem, as the purchasing power of the Egyptian pound has significantly declined in recent years. He explains that the new minimum wage remains below the actual cost of living, meaning that Egyptian employees will continue to struggle with a gap between income and expenses.
Speaking to Zawia3, Abdel Muttalib states:
“When we look at the basic expenses of an average citizen, we find that the new minimum wage covers only a small portion of essential needs.” He points out that housing costs alone range between 3,000 and 5,000 pounds ($60–$100) per month, while a family of four needs at least 4,000 pounds ($80) for food, excluding bills, transportation, education, and healthcare expenses.
He continues:
“Given the current inflation, the minimum wage needs to be at least 10,000 pounds ($200) to ensure a decent standard of living. However, this requires comprehensive economic policies to control prices and increase production, rather than just raising wages nominally.”
Will the Private Sector Comply?
Regarding the private sector’s compliance, Abdel Muttalib highlights that the biggest issue lies in the lack of effective oversight and strict penalties, allowing many companies to bypass the decision in various ways.
“Some companies officially register employee salaries on paper in compliance with the minimum wage, but in reality, they force employees to sign receipts for higher amounts than they actually receive,” says Kamal, referring to a widespread practice facilitated by the absence of clear enforcement mechanisms.
He adds:
“Egyptian employees in the private sector often cannot demand their rights because they know that any objection might result in the termination of their contract and replacement by a lower-paid worker.”
A Holistic Approach Beyond Wage Increases
Abdel Muttalib argues that the solution does not lie solely in raising the minimum wage but in establishing a comprehensive economic framework that ensures fair wages while maintaining market stability. He proposes several key measures to address the crisis, including:
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Strengthening oversight on private companies by establishing an independent authority to monitor compliance with the minimum wage, receive employee complaints, and protect workers from unjust termination.
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Offering tax incentives to companies that comply, encouraging them to improve wages instead of circumventing regulations.
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Introducing support programs for the private sector, particularly small and medium-sized enterprises (SMEs), to help them manage wage increases without jeopardizing their survival.
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Linking the minimum wage to inflation rates, ensuring periodic reviews to keep it aligned with economic changes.
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Promoting local production to reduce reliance on imports, stabilize prices, and enhance the purchasing power of salaries.
Abdel Muttalib concludes by emphasizing:
“Simply raising the minimum wage will not be enough unless accompanied by genuine economic reforms.” He stresses that the best solution lies in improving the work environment, increasing production, and monitoring prices to prevent the decision from becoming merely a tool to polish Egypt’s economic image without delivering real impact on citizens’ lives.
The Collapse of Domestic Consumption
Dr. Bilal Shoaib, an economic expert, argues that the crisis goes beyond financial concerns, evolving into a serious social and economic issue. He explains that low wages are disrupting Egypt’s consumption system, increasing poverty rates, and threatening social stability.
Speaking to Zawia3, Shoaib emphasizes that the Egyptian economy heavily relies on domestic consumption, as household spending constitutes a significant portion of GDP. However, with wages failing to keep up with inflation, citizens’ purchasing power has sharply declined, leading to a notable slowdown in several economic sectors.
“When the average citizen can no longer afford basic goods or even non-essentials, sales drop, causing companies to lose profits, reduce investments, and lay off workers. This creates a vicious cycle of economic stagnation and recession,” he explains.
He cites examples such as the declining demand for cars, household appliances, and even high-priced food products, as consumers can no longer afford them, despite retailers offering discounts and flexible payment plans.
Shoaib warns that the continued weakening of purchasing power could lead to the erosion of the formal labor market, as employers increasingly turn to informal labor at lower wages. This trend exacerbates poverty and job insecurity, making the crisis not just an economic issue, but also a psychological and social one. He explains that low wages and soaring prices create widespread frustration and a loss of confidence in the future.
Experts point out that deteriorating living conditions have contributed to rising illegal migration rates, as many Egyptians see leaving the country as their only chance for a stable life. Some researchers also link economic hardship to a rise in financially driven crimes, raising concerns about larger social repercussions in the future.
Shoaib asserts that the solution is not just about raising the minimum wage but about redistributing wealth more fairly within society. He argues that while some industries generate massive profits, their employees are paid wages that do not match the rising cost of living.
“There must be fair policies that ensure better distribution of profits. Large corporations should be required to increase wages instead of concentrating wealth in the hands of a few shareholders and executives,” he states.
He also stresses the importance of improving work environments to allow employees to achieve higher productivity in exchange for fair wages. Additionally, he calls for incentives for the private sector to encourage wage increases, rather than relying solely on government mandates that may not be widely enforced.
Shoaib concludes:
“What citizens need is not just higher salaries, but a stable economy, quality public services, and a fair job market that offers them opportunities for growth—without forcing them into desperate solutions.”
Ultimately, between wage hike announcements and harsh living realities, Egyptians remain trapped in an unequal battle against inflation and the erosion of purchasing power. While official figures promote improvements, real-life testimonies reveal daily struggles that stretch from securing basic meals to meeting the lowest standards of dignified living.
The real question remains: Does this crisis require superficial decisions, or deeper economic policies that restore balance between wages and prices, giving citizens hope for a future measured not just in numbers, but in a life worthy of their dignity?
