The Ministry of Planning and Economic Development announced on Tuesday that Egypt will raise the minimum wage for private sector workers by 300 Egyptian pounds ($9.72) to three thousand pounds per month starting from July.
The decision comes after Egyptian President Abdel Fattah el-Sisi ruled out a currency devaluation in the near future, following three sharp devaluations that led to a depreciation of the pound by around 50% against the dollar since the Russian invasion of Ukraine in February 2022.
Annual inflation in Egyptian cities rose to 32.7% in May, just below its all-time high, while the annual core inflation increased to 40.3% in the same month.
The official exchange rate has remained stable at around 30.90 pounds per dollar for over three months, while it depreciated in the black market to around 39 pounds against the dollar.
In April, the government raised the minimum wage for state workers to 3,500 pounds ($113.45).
The Ukrainian war has led to the withdrawal of foreign investors from Egyptian debt markets and a severe shortage of foreign currency.
