Sabry added that this move aims to alleviate the impact of the global economic situation on the public, especially with the approach of the holy month of Ramadan.

“This step aligns with President Abdel Fattah El-Sisi’s directives to support citizens and alleviate their financial burdens, given the unprecedented rise in price levels and inflation,” Sabry added in a phone call with the Salet El-Tahrir TV show on Sada El-Balad channel.

The anticipated wage increases will be the third in a year.

Egypt’s headline inflation rates increased significantly throughout the first nine months of 2023, reaching a worrisome peak of 40.3 percent in September.

As of October, the inflationary trend began to slow down, with the annual headline inflation rate dropping to 35.2 percent in December 2023.

Prices, however, continued to rise, with experts attributing the matter to the pricing of goods and services per the USD exchange rate in the black market rather than the official exchange rate in banks.

Under an ongoing $3 billion program with the International Monetary Fund, the local market is anticipating a fourth wave of the local currency devaluation against the US dollar.

Sabry clarified that the anticipated raises in wages and pensions are pending approval of the finance ministry.

On Saturday, Minister Mohamed Maait revealed that the government is preparing to introduce a comprehensive social protection package,  including wage and pension adjustments and changes to the tax exemption threshold.

Regarding the tax exemption threshold, Sabry said the step aims to encourage investment and enhance the private sector’s role in the economy.

In September, El-Sisi announced a series of measures to alleviate financial strains on citizens, including raising the minimum wage for public sector employees from EGP 3,500 to EGP 4,000.

El-Sisi raised the annual income tax exemption threshold by 25 percent, from EGP 36,000 to EGP 45,000.

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