In the coming weeks, Egypt’s National Wage Council will convene to review the latest developments and make decisions regarding the country’s wage structure, according to statements by Minister of Planning, Dr. Rania Al-Mashat in an interview with Asharq TV, on the sidelines of the World Economic Forum in Davos, Switzerland. The comments came shortly after Egypt’s Finance Minister, Ahmed Kouchouk, hinted at the possibility of an increase in wage levels, stating that such an adjustment had become “feasible.”
In response to a question about raising the minimum wage, Dr. Al-Mashat confirmed that the council responsible for overseeing wage policies would meet in the coming weeks to discuss the “criteria and variables” that will influence such decisions.
It is worth noting that in April of last year, Egypt raised the minimum wage for private sector workers to 6,000 EGP, effective from May 2024.
Significant Drop in Inflation Expected
Regarding inflation, Dr. Al-Mashat suggested that Egypt could see a notable decline in inflation rates by February, with a projected rate between 15% and 16%. This drop is attributed to the “base year effect,” which is expected to provide substantial relief to the market and present a positive outlook for various sectors.
In December, inflation in Egyptian cities slowed to 24.1% year-on-year, marking the lowest level in two years. Core inflation, which excludes volatile items, also decreased to 23.2% in December, down from 23.7% in November. This decline reflects an easing in inflationary pressures, which could help stabilize the economy in the coming months.
