Egypt’s Finance Minister Ahmed Kouchouk announced on Wednesday that the government will increase the minimum wage for public sector employees to 7,000 Egyptian pounds ($138.50) per month, effective July 2025. The adjustment aligns public sector wages with the private sector minimum wage, which was raised in February.

The wage hike is part of a broader social protection initiative set to take effect with the new fiscal year. The initiative, expected to cost between 80 and 85 billion Egyptian pounds ($1.6-$1.7 billion), aims to provide relief to Egyptians struggling with inflation and currency depreciation.

To support low-income families before the new wage policy takes effect, the government has introduced a temporary relief package worth 35-40 billion Egyptian pounds ($692-$791 million). Running from March through June, the package includes increased funding for Egypt’s ration card system, benefiting 10 million vulnerable families in March and April.

Despite previous wage hikes, the real value of earnings has declined due to rising inflation and the weakening Egyptian pound. In February 2024, the minimum wage was raised by 50% to 6,000 pounds, then worth $194, but its purchasing power has since eroded. Inflation surged after Russia’s 2022 invasion of Ukraine, leading to a capital flight of billions from Egypt’s treasury markets. In January 2025, annual urban consumer price inflation stood at 24%, reflecting persistent economic strain.

Egypt continues to face a severe foreign currency shortage and is seeking an $8 billion loan from the International Monetary Fund (IMF). The IMF deal requires Egypt to adopt a flexible exchange rate, reduce state control over the economy, and enhance private sector involvement—reforms intended to attract foreign investment and stabilize the economy.

While the upcoming minimum wage increase and financial relief measures provide short-term support, long-term solutions will be critical in addressing Egypt’s ongoing economic crisis and rising cost of living.