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Egypt to raise minimum wage for private sector to $97 per month

June 20, 2023 at 3:56 pm

Egyptian pounds [emi moriya/Flickr]

Egypt will raise the minimum wage for workers in the private sector by 300 Egyptian pounds ($9.72) to 3000 pounds a month as of July, the Ministry of Planning and Economic Development said on Tuesday, Reuters reports.

The decision comes after Egyptian President, Abdel Fattah Al-Sisi, last week appeared to rule out a further currency devaluation any time soon, following three sharp devaluations, that cut the pound’s value by about 50 per cent against the dollar, since Russia’s invasion of Ukraine in February 2022.

Annual urban inflation accelerated to 32.7 per cent in May, just short of an all-time high, while the annual core inflation rose to 40.3 per cent in the same month.

The official exchange rate has remained fixed at about 30.90 pounds to the dollar for more than three months, while on the black market it has weakened to about 39 pounds to the dollar.

In April, the government raised the minimum monthly wage for state workers to 3500 pounds ($113.45).

The Ukraine war triggered an exodus of foreign investors from Egypt’s treasury markets and a severe shortage of foreign currency.

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