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· Egypt’s president Abdel Fattah el-Sissi recently raised the monthly minimum wage to about US$172
· This move is aimed at easing the burden of Egyptians due to austerity measures taken by the government in recent years to tide over the financial difficulties .
· The minimum monthly wage would be 2,700 Egyptian pounds ($171.5). It is an increase of 12.5 percent from the current 2,400 Egyptian pounds ($152.5)
· The government is likely to increase the salaries of civil servants. It may go up by about 13 per cent
Egypt’s president Abdel Fattah el-Sissi recently raised the monthly minimum wage to about US$172. This move is aimed at easing the burden of Egyptians due to austerity measures taken by the government in recent years to tide over the financial difficulties .
The minimum monthly wage would be 2,700 Egyptian pounds ($171.5). It is an increase of 12.5 percent from the current 2,400 Egyptian pounds ($152.5). The government is likely to increase the salaries of civil servants. It may go up by about 13 per cent.
This is the third time the minimum wage has been increased since the president took office in 2014. The announcement came after a meeting with the prime minister, the finance minister and other financial officials. The announcement has come after the meeting when the higher ups discussed the upcoming budget. Significantly, bonuses for teachers were increased.
The statement is silent when the hike would take place. It is quite possible, it may come into being only in July, the start of the new fiscal year. Egypt has been following stringent austerity measures as a part of the reform to comply with the agreed upon terms with the International Monetary Fund (IMF) in exchange for a US$12 billion loan, which the Egyptian government secured in 2016. The IMF conditions included the floating of the currency, substantial cuts in government subsidies for basic goods and the introduction of a wide range of new taxes.
A bye product of these reforms was a significant increase in prices and services. This had considerably affected the poor and middle class. It is reported that 29.7 per cent of Egypt’s more than 100 million people live in poverty.
