Govt approves 15% pensions increase to contain soaring prices

Egypt’s Cabinet approved on Monday an additional package of LE43 billion for social security, which included an LE20 billion increase for pensions, an LE2.25 billion increase to the Takaful and Karama program (family income support policy), an increase of LE7 billion in tax exemption and LE14 billion for state employees’ wages as part of a series of government measures to reduce the burden on low-income citizens.

Minister of Social Solidarity Ghada Wali said the Cabinet had agreed to increase pensions by 15 percent, at a minimum of LE130 each starting from July 1.

At a press conference in the Cabinet headquarters, she added that the increase is funded by the state treasury to benefit 9.5 million people. Increasing insurance pensions will cost the state LE20 billion.

The Cabinet also approved a LE100 increase for the beneficiaries of the Takaful and Karama program, which will cost the state LE2 billion. This decision came to shield lower-income citizens from the effects of the economic reform program.

Egypt is currently suffering from unprecedented price hikes due to recent economic measures implemented by the government, among them the devaluation of the Egyptian pound in November.

The economic reform program is part of the US$12 billion loan deal with the International Monetary Fund.


Edited translation from Al-Masry Al-Youm

Related Articles

Back to top button