EGYPT · ECONOMY
Key Facts
- —What is happening A Prime Minister’s decree made public on Monday 26 October 2026 sets how Egypt’s National Wages Council works, including a yearly minimum wage review.
- —Why it matters The council now has a written duty to revisit the national minimum wage at least every year, which shapes pay floors and costs for employers.
- —The numbers Decision No. 3165 of 2026 sets a floor of 3% of the insured wage for the annual raise; employer requests for relief must be decided within 30 days.
- —Who is who The National Wages Council is the state body that sets Egypt’s minimum wage; Prime Minister Mostafa Madbouly heads the cabinet that issued the decree.
- —What to watch The decree gives no new minimum wage figure and no confirmed start date; the council’s first yearly review under these rules is the next step to watch.
- —What it means for you US companies employing Egyptian staff, and investors tracking Egypt’s IMF-backed reforms, face a rule-bound path for future wage floors and employer relief requests.
Egypt’s government has ruled that its wages panel must review the minimum wage every year. The decree was reported on Monday 26 October 2026.
Egypt has ordered its National Wages Council to carry out minimum wage reviews at least once a year. The Prime Minister’s Decision No. 3165 of 2026 appeared in the Official Gazette, reported on Monday 26 October 2026.
The council is the state body that sets the national minimum wage for workers in every sector. The decree matters to US readers because it makes wage floors and employer relief rules more predictable for firms operating in Egypt.
What the Decree Says About Minimum Wage Reviews
Cairo Mubasher (a news site), Ahram Business (state-owned Al-Ahram’s economy site) and Amwal Al Ghad (a business outlet) describe the same text. It has two articles, and the first lets the council form expert subcommittees from its own members or outsiders.
Those subcommittees must balance three sides: the government, employers’ organisations and workers’ trade unions. The second article lists the council’s six powers.
The council sets minimum wages for workers across sectors, weighing family needs, living costs and the balance between employers and employees. It must also support higher productivity.
The minimum wage must be reviewed at least once a year, or whenever needed. The review looks at economic and social conditions, inflation, price changes and the cost of living.
A Floor of 3% for the Annual Raise
The council also sets the minimum annual periodic increment, meaning the routine yearly pay rise. The decree says it may not be less than 3% of the insured wage.
The insured wage is the pay on which social insurance contributions are calculated. The payment rules follow Labor Law No. 14 of 2025, Egypt’s new labour code.
Employers can ask the council to reduce the raise or exempt them from it in emergency economic conditions. The council must decide within 30 days of the request reaching it.
It decides under criteria it sets itself and must tell the relevant ministries whether each request was accepted or rejected. The reports do not say who the relevant ministries are.
How the Decree Reached the Gazette
Egypt’s Council of Ministers, the cabinet chaired by Prime Minister Mostafa Madbouly, approved a draft on Wednesday 16 September 2026. Masrawy, an Egyptian news site, and Alborsa News both reported it that day.
The September draft also said the council meets at least every six months and that a technical secretariat supports it. The gazette reports reviewed do not repeat those points, so they may sit in other provisions.
The draft described a secretariat led by a Planning Ministry representative, with four specialists from the Planning and Labour ministries. Whether the final text keeps that design is not confirmed in the reports.
Where Pay Levels Stand Now
The decree sets no new wage figure. Egypt Telegraph, a Cairo news site, says the budget lifts the state employee minimum to EGP 8,000 (about US$142) from 1 July.
Egyptian Streets, an English-language Cairo outlet, says Madbouly announced the EGP 8,000 (about US$142) level on Wednesday 1 April 2026. It also says the private-sector minimum rose to EGP 7,000 (about US$124) in March 2025.
Rates use US$1 = EGP 56.27, from open.er-api.com at 00:02 UTC on Tuesday 27 October 2026. The central bank’s official rate may differ slightly.
In Plain English
- National Wages Council: the Egyptian state body that sets the national minimum wage.
- Insured wage: the pay on which social insurance contributions are calculated, which can differ from take-home pay.
- Periodic increment: the routine yearly raise employers must pay under the labour law.
- Official Gazette: the government journal where decrees are published to take legal force.
What It Means for US Readers
US companies with Egyptian staff now have a written rule for the yearly raise floor and for asking relief. They should expect the minimum wage to be reviewed every year.
Investors following Egypt’s economy can read the decree as a rule-setting step, not a pay rise. Egyptian Streets notes that Egypt is running an IMF loan programme, and wage costs feed into inflation and the budget.
What Is Not Known
The reports do not give the decree’s effective date, though one Egyptian outlet’s headline says it applies from Tuesday 27 October. The Official Gazette issue itself was not opened, so the text rests on the outlets’ accounts, which agree.
Council membership, meeting frequency and voting rules are not in the reports of the final decree. The first review date is unknown, and so is whether EGP 8,000 (about US$142) or EGP 7,000 (about US$124) will change.
What Comes Next
The council’s first review under the new rules is the key step, but no date has been announced. A change to the minimum wage would come as a separate council decision.
The decree does not by itself raise anyone’s pay. It sets the process that future raises must follow.
Frequently Asked Questions
What did Egypt decide about its minimum wage council?
The Prime Minister’s Decision No. 3165 of 2026 defines how the National Wages Council works and what it decides. Egyptian outlets reported its Official Gazette publication on Monday 26 October.
How often must Egypt review its minimum wage?
At least once a year, or sooner when conditions require. The council weighs inflation, prices and living costs.
What is the minimum pay raise under the decree?
The council sets the annual periodic raise at no less than 3% of the insured wage. The insured wage is the pay on which social insurance is calculated.
Can employers skip the annual raise?
They can ask the council to cut or waive it during emergency economic conditions. The council must decide within 30 days of receiving the request.
Does the decree change the minimum wage now?
No new figure is stated in the reports. Egyptian outlets say the 2026-27 budget sets EGP 8,000 (about US$142) a month for state employees from 1 July 2026.
Sources: Cairo Mubasher, 26 October 2026 (Arabic); Ahram Business, 26 October 2026 (Arabic); Amwal Al Ghad, 26 October 2026 (Arabic); Masrawy, 16 September 2026 (Arabic); Alborsa News, 16 September 2026 (Arabic); Egypt Telegraph, 17 September 2026 (Arabic); Egyptian Streets, 2 April 2026; Exchange rate, open.er-api.com (all accessed 27 October 2026).
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief
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