Egypt's parliament manpower committee approves 15% increase in pensions

Ahram Online , Monday 12 Jun 2017

File Photo: A general view of the Egyptian parliament during a working session in Cairo, Egypt (Photo: AP)

The Egyptian parliament's manpower committee has approved a 15 percent raise in pensions, with a baseline increase of EGP 130 for those on the smallest of pensions, Al-Ahram Arabic website reported.

The changes, announced on Monday and effective from 1 July, will see the minimum monthly pension increased from EGP 500 to EGP 630 per month.

The higher categories of pension, meanwhile, could increase by up to EGP 551 per month.

The Egyptian cabinet agreed last month to allocate EGP 43 billion for the social security budget for the finanical year 2017-2018.

This allocation included an EGP 20 billion increase for pensions, to ease the burden of inflation on basic services and goods resulting from the government's economic reform program.

Egypt started a fiscal reform programme in July 2014 in an attempt to curb the growing state budget deficit through cutting subsidies and introducing new taxes.

In November 2016, Egypt's Central Bank floated the pound and raised key interest rates as part of a set of reforms aimed at alleviating the dollar shortage, eradicating the currency black market and stabilising the country's flagging economy.

In May, the Egyptian government retroactively approved a special 10 percent raise for employees who are not covered by the country's civil service law.

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