A presidential spokesman stated today, Wednesday, that Egyptian President Abdel Fattah el-Sisi has raised the minimum wage by 50% to 6,000 Egyptian pounds ($194) starting next month. Sisi's directives come at a time when Egypt is experiencing a decline in the value of the pound. Some analysts have suggested that the central bank's decision to raise interest rates by 200 basis points last week may indicate a potential devaluation of the currency. The Egyptian pound, which has seen its official exchange rate fixed at 30.85 pounds to the dollar since March, was traded in the black market earlier this month at 71 pounds to the dollar.
The social package includes raising the tax exemption threshold on annual income from 45,000 pounds to 60,000 pounds, as well as increasing pensions for beneficiaries of the Takaful and Karama programs - which provide monthly cash assistance to the poorest families - by 15% each month. The decisions also involve "increasing the incomes of state employees and economic authorities" starting from March, with a minimum increase ranging between 1,000 pounds ($33) to 1,200 pounds, in addition to the 50% increase in the minimum wage.
Egypt is facing an economic crisis and a chronic shortage of foreign currency, and it has held talks with the International Monetary Fund over the past two weeks to revive and expand the loan agreement signed in December 2022. The country's economic struggles have been exacerbated by the war in Gaza, which has weakened tourism and reduced shipping through the Suez Canal, a major source of foreign currency.
