CAIRO, 17 March 2025 –  Following the adoption of Ministerial Decision No. 15 of 2025, which sets a new private sector minimum wage of 7,000 EGP (approximately 138 USD) per month, effective March 1, the ILO/IFC Better Work Egypt (BWEg) programme and the ILO “Empowerment through Education and Learning in Egypt” (ETEL) project have collaborated to ensure the coordinated and effective implementation of the new wage in the garment sector.

To support employers to adapt to the new requirements, BWEg and ETEL hosted a virtual industrial seminar, with representatives from the Ministry of Labour(MoL), employers, international buyers, and the Federation of Egyptian Industries (FEI), to discuss wage mechanisms and calculation methods, including a discussion on the legal interpretation of the components of the total wage.

Mr. Yasser El-Sherbini, Director of the General Directorate for Collective Bargaining at MoL, highlighted that the decision aligns with President Abdel Fattah El-Sisi’s directives to enhance social protection and improve workers’ living standards. He clarified the wage calculation methods under labour law and confirmed that the minimum wage excludes the employer’s social insurance contributions.

The seminar also emphasized the economic benefits of fair wages. Mr. Ala’a Al-Saifi, Operations Manager at Better Work Egypt, said, “Fair wages foster workforce stability, increase productivity, and stimulate economic growth.” He added that adherence to national labour laws and upholding decent working conditions attract foreign investments, reflecting a commitment to responsible business practices.

Another focus of the seminar was the impact of fair wages on social justice. Ms. Marwa Salah, ETEL Project Manager, stressed that decent income reduces families’ reliance on child labour, safeguarding children’s right to education and future development as improved wages contribute to stable and productive communities.

Dr. ElSayed Torki, Advisor at the FEI, emphasized the importance of extending the seminar’s outcomes to other sectors. He advocated for sharing best practices to ensure consistent nationwide implementation of the new minimum wage, promoting inter-sectoral cooperation.