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 in an attempt to combat spiralling inflation, the Ministry of Planning and Economic Development said on Tuesday.
The decision comes after Egyptian President Abdel Fattah al-Sisi last week appeared to rule out a further currency devaluation anytime soon following three sharp devaluations, that cut the pound's value by about 50% against the dollar, since Russia's invasion of Ukraine in February 2022.
Annual urban inflation accelerated to 32.7% in May, just short of an all-time high, while the annual core inflation rose to 40.3% 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.