Annual minimum compensation

Egypt's annual minimum compensation rule sets the legally mandated floor wage that employers must pay workers. As of July 2024, the monthly minimum wage in Egypt is EGP 8,000, which translates to an annual minimum compensation of EGP 96,000. This requirement applies to most private and public sector employees and establishes the lowest permissible gross monthly salary an employer may offer.

The minimum wage covers base compensation and applies across sectors unless specific sectoral agreements provide higher rates. It does not typically include benefits, allowances, or bonuses, though these may be required separately under collective agreements or employment contracts. The rule protects workers from exploitation by ensuring a baseline income level adjusted periodically for inflation and economic conditions.

Egypt's minimum wage is governed by the Egyptian Labour Law and decisions issued by the Cabinet of Ministers. The most recent adjustment raised the minimum wage to EGP 8,000 monthly, effective July 2024, representing an increase from the previous statutory floor.

Employers operating in Egypt must ensure all employees receive at least the statutory minimum wage unless they qualify for specific exemptions. Payroll teams should verify that gross monthly salaries meet or exceed EGP 8,000 and maintain documentation of compliance. Any employment contracts offering below-minimum compensation are unenforceable, and violations may result in penalties. Organizations should monitor Cabinet announcements for future adjustments, as minimum wage reviews occur periodically to reflect economic changes. Compliance is mandatory regardless of company size or sector classification.