Egypt Announces Significant Wage Increases and Social Support Package
Egypt plans to increase public sector wages to EGP7,000 per month starting in July, matching recent increases in the private sector. This change is part of a broader EGP200 billion social support package aimed at easing living costs during Ramadan. Pensioners will see a 15 percent increase in benefits, and substantial financial assistance will be provided to millions of families.
Egypt is set to raise the minimum wage for public sector employees to EGP7,000 (approximately $139) per month starting July. This increase will coincide with a recent wage raise for the private sector. Prime Minister Mostafa Madbouly announced this wage hike as part of a larger social support package amounting to EGP200 billion (around $4 billion), designed to alleviate the financial burden on citizens during Ramadan and the new fiscal year.
In addition to wage increases, pensioners will benefit from a 15 percent hike effective in July, with nearly 10 million families receiving financial assistance ranging from EGP125 to EGP250 during Ramadan and the Eid festival. This new initiative follows two earlier support packages totaling EGP240 billion aimed at combating the rising cost of living faced by Egyptian citizens.
The comprehensive social package will include a state-funded program of EGP10 billion dedicated to enhancing economic empowerment for local families, alongside EGP6 billion allocated for farmer assistance. The anticipated financial implications of this package are substantial, with wage adjustments alone expected to reach EGP85 billion in the upcoming fiscal year, as outlined by Finance Minister Kouchouk.
In conclusion, Egypt’s newly announced social support package aims to address the economic challenges faced by its citizens through significant wage increases and targeted financial assistance. With the government investing heavily in public welfare, this initiative underscores the commitment to enhancing the living standards of its population, especially during crucial periods like Ramadan. The combination of wage hikes for both public and private sectors and additional support for pensioners reflects a comprehensive strategy to navigate economic difficulties.
Original Source: www.agbi.com