Egypt will raise the minimum wage for public sector workers to EGP7,000 ($139) per month from July, which aligns with a private sector increase. This is part of a larger EGP200 billion social support package introduced by Prime Minister Mostafa Madbouly to assist families during Ramadan. The package will also include pension increases and financial aid for families holding ration cards.
Egypt has announced a significant increase in the minimum wage for public sector employees, raising it to EGP7,000 ($139) per month, effective July. This initiative coincides with a similar wage adjustment for the private sector, as reported by local media. Prime Minister Mostafa Madbouly unveiled this hike as part of a broader EGP200 billion ($4 billion) social support package designed to provide financial relief during Ramadan and the upcoming fiscal year.
The newly introduced social package also includes a 15 percent pension increase beginning in July and financial aid for approximately 10 million families holding ration cards. This assistance, ranging from EGP125 to EGP250, will support families during Ramadan and the Eid festival. These measures complement two previous support initiatives totaling EGP240 billion, aimed at alleviating the burden of rising living costs.
To further bolster the economy, the package allocates a state-backed fund of EGP10 billion to empower local families financially. Additionally, farmers will receive support totaling EGP6 billion. According to finance minister Kouchouk, these wage increases alone are projected to cost EGP85 billion in the forthcoming fiscal year, with the overall implementation of the social package anticipated to reach EGP40 billion over the next two months.
The recent wage hikes and social support measures in Egypt are significant steps towards mitigating the economic challenges faced by citizens. By increasing both minimum wages and pensions, the government aims to ease the financial strain on families, particularly during challenging periods like Ramadan. The comprehensive social support package emphasizes the government’s commitment to enhancing the living standards of its citizens while promoting economic stability.
Original Source: www.agbi.com
