Egypt Introduces Significant Social Support Package with Wage Increase

Egypt will raise the minimum wage for public sector employees to EGP7,000 per month starting in July, aligned with a private sector increase. This wage hike is part of a broader EGP200 billion social support package announced by Prime Minister Mostafa Madbouly, providing pension increases and financial assistance to millions during Ramadan. The initiative aims to ease living costs and empower local families economically.

Egypt is set to increase the minimum wage for public sector employees to EGP7,000 (approximately $139) per month, effective July, mirroring a hike for the private sector announced earlier this month. This increase is part of a comprehensive social support package valued at EGP200 billion ($4 billion), introduced by Prime Minister Mostafa Madbouly.

The package will be rolled out during Ramadan and the upcoming fiscal year. It includes a 15 percent pension increase for retirees starting in July, alongside financial assistance for nearly 10 million families with ration cards, with amounts ranging from EGP125 to EGP250 provided during Ramadan and the Eid festival.

These measures follow previous support initiatives totaling EGP240 billion, aimed at mitigating the rising cost of living. Additionally, the new program allocates EGP10 billion for a state-backed fund designed to enhance economic empowerment for local families and earmarks EGP6 billion in support for farmers, per local media reports.

The implementation of the social package is projected to incur an expenditure of EGP40 billion over the next two months, with wage increases alone expected to cost EGP85 billion in the following fiscal year, as stated by Finance Minister Kouchouk. This substantial increase in financial support illustrates the government’s commitment to improving economic conditions for its citizens.

The Egyptian government has announced a significant social support package aimed at increasing minimum wages and providing financial assistance to vulnerable families. With a comprehensive plan encompassing pension hikes and targeted support during Ramadan, these measures reflect a proactive approach to alleviating the economic burden facing many citizens. The government’s investment, totaling EGP200 billion, marks an important step toward economic empowerment and stability.

Original Source: www.agbi.com