Policy Viewpoints

Minimum Wage in Egypt: Striking a Balance between Productivity and Social Justice

Publication Number: ECES-PVP30-E/A

July, 2012

Author : Magda Kandil & Omneia Helmy

Type : Policy Viewpoints

The issue of social justice has taken stage post January 25 Revolution, where many have argued for the need to establish a minimum wage policy that protects real income from deterioration. Over time, the minimum wage policy has failed to balance the objectives of employment creation and securing a dignified standard of living for many in Egypt. In the absence of such a coherent approach, increasing the minimum wage could increase unemployment and informality, and heighten inflationary pressures if sectoral and regional disparities were not taken into consideration.