Annual minimum compensation

Egypt's annual minimum compensation requirement mandates that employers pay workers no less than EGP 84,000 per year, equivalent to a monthly minimum wage of EGP 8,000. This floor applies to most private and public sector employees across Egypt and establishes the baseline compensation below which no employer may lawfully remunerate a worker, regardless of employment classification or contract type.

The minimum wage is governed by Egyptian labor law and enforced by the Ministry of Manpower and Migration. The government periodically adjusts this figure to reflect inflation and cost-of-living changes, ensuring workers maintain purchasing power.

Egypt raised its minimum wage to EGP 8,000 per month effective July 2024, increasing the annual floor to EGP 84,000. This represented a significant adjustment from the previous statutory minimum and reflects the government's response to economic conditions and wage pressures within the labor market.

Employers operating in Egypt must ensure all employees earn at least the statutory minimum wage during each pay period. Payroll teams should verify that base salaries, before deductions, meet or exceed this threshold. The minimum applies to regular working hours and does not include overtime compensation, bonuses, or benefits unless those are structured as part of base wages. Organizations must document compliance in payroll records and maintain evidence that all workers receive at least the mandated amount. Non-compliance can result in administrative penalties and back-wage liability. Employers should monitor government announcements for future adjustments, as minimum wage changes in Egypt typically occur annually or during periods of significant economic adjustment.