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Finance Minister: Public Sector Wage Increase to Take Effect in July Under FY2026/2027 Budget; Total Cost Exceeds EGP 100 Billion


Speaking at a press conference, Kouchouk stated that the government wage bill will rise by approximately 21% in the upcoming fiscal year, ensuring a real increase in employees’ incomes that surpasses inflation

Egypt’s Minister of Finance, Ahmed Kouchouk, announced that the latest increase in public sector wages has been fully incorporated into the FY2026/2027 state budget and will be disbursed starting with July salaries.

 

He noted that the total cost of the increase exceeds EGP 100 billion, raising total wage allocations in the budget to EGP 821 billion.

 

Kouchouk  emphasized that the government aims to link wage increases to improvements in the quality of essential public services delivered to citizens.

 

The minister added that the new measures will raise the minimum monthly income for public sector employees to EGP 8,000.

 

This includes an annual increment of 12% for employees subject to the Civil Service Law and 15% for those not covered by it, in addition to a monthly increase in the additional incentive by EGP 750 for all employees, at a total cost of EGP 77.5 billion.

 

Kouchouk also outlined targeted incentives for key sectors.

 

In education, teachers will receive an additional monthly teaching incentive of EGP 1,000 starting from the new academic year, alongside a EGP 2,000 “excellence incentive” for distinguished school management, at a total cost of EGP 14 billion.

 

In the healthcare sector, employees will receive an additional EGP 750 per month, along with a 25% increase in overnight and on-call shift allowances, effective from July 1, at a total cost of EGP 8.5 billion.

 

The minister noted that approximately 1 million teachers in the Ministry of Education and Al-Azhar will benefit from the new increases, in addition to around 640,000 employees in the healthcare sector, reflecting the government’s commitment to supporting vital sectors and improving workforce conditions.

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Finance Minister: Public Sector Wage Increase to Take Effect in July Under FY2026/2027 Budget; Total Cost Exceeds EGP 100 Billion