Egypt is launching a social support package that includes raising the minimum wage for public sector employees to EGP7,000 per month and providing financial assistance to pensioners and families with ration cards. This initiative, part of an EGP200 billion package, aims to address cost-of-living increases and empower local families and farmers economically during Ramadan.
Egypt is set to raise the minimum wage for public sector workers to EGP7,000 ($139) per month starting in July. This increase will align with a similar wage hike introduced for the private sector this month, as reported by local media. The move is part of a broader EGP200 billion ($4 billion) social support package announced by Prime Minister Mostafa Madbouly.
This social support package will be rolled out during Ramadan and the upcoming fiscal year. Pensioners will see a 15 percent increase commencing in July, with nearly 10 million families holding ration cards receiving financial assistance ranging between EGP125 and EGP250 during Ramadan and Eid.
This initiative follows two earlier support packages totaling EGP240 billion aimed at mitigating the rising cost of living in Egypt. Additionally, the new package includes a state-backed fund of EGP10 billion to boost economic empowerment for local families, along with financial aid of EGP6 billion for farmers, as noted in the report.
According to Finance Minister Kouchouk, this social package will incur a cost of EGP40 billion over the next two months, with the wage increases alone projected to reach EGP85 billion in the upcoming fiscal year. These measures indicate Egypt’s commitment to address economic challenges faced by its citizens amid rising inflation and cost of living issues.
In summary, Egypt is implementing a significant wage increase for public sector employees and pensioners as part of a comprehensive social support package totaling EGP200 billion. This package aims to alleviate the economic burden on families, especially during Ramadan, and is coupled with previous support initiatives. The government also emphasizes economic empowerment for local families and farmers through targeted financial assistance.
Original Source: www.agbi.com
