Egypt's Treasury to Spend EGP 60 Billion on Raises in Pensions, Basic Salaries for State Employees
Source: www.export-egypt.com 6/4/2018
Egypt’s Prime Minister Sherif Ismail said that the country’s public treasury will spend over EGP 60 billion to increase pensions and basic salaries for state employees.
In official statements reported by the state-owned MENA news agency, Ismail said the raise came upon orders from President Abdel-Fattah El-Sisi, who is focused on improving the conditions of citizens, especially low-income individuals, while expanding the country’s social safety net.
Since Egypt has been introducing economic reforms over the past few years, El-Sisi has directed the government to strengthen social protection for the poor and other vulnerable groups.
The new raise will be implemented starting July with the advent of fiscal year 2018/19, and after the budget is ratified by parliament.
The raise in pensions will cost around EGP 27 billion and will benefit 9 million people, while the additional raise for state employees will include around six million public servants, according to Ismail.
Earlier on Monday, Egypt’s parliament voted in favour of granting an additional increase in pensions and basic salaries for state employees.
The law passed by parliament mandates a 15 percent increase in pensions for state employees to be added to their basic pensions as of 30 June 2018, and an increase of the minimum pension to EGP 750 per month.
The second article stipulates that state employees at the government's administrative apparatus who are subject to the Civil Service Law of 2016 are to receive a 7 percent annual raise and an additional irregular raise of 10 percent on their basic salary.