Egypt's parliament approves 15% increase in pensions

Ahram Online , Tuesday 11 Jun 2019

File photo: Egyptian parliament (Reuters)

Egypt’s parliament approved on Tuesday a 15 percent increase in pensions for government workers, with pensioners receiving a minimum increase of EGP 150 (approx. $9) to take a minimum pension of 900 pounds ($54).

Plans to introduce the new rise were announced by President Abdel-Fattah El-Sisi in March when he raised the country’s minimum wage to EGP 2,000 ($116) a month, up from EGP 1,200.

The new increase will be at a minimum of EGP 150 and a maximum of EGP 832.5, and will come into effect in July.

The government said that the decision aims to improve living conditions of pensioners to help combat rising prices. The measure will cost the state's coffers more than EGP 28 billion and will benefit around 10 million citizens, according to the social solidarity ministry.

This is the latest in a series of similar increases introduced to the pensions of Egyptian workers in recent years.

Egypt has introduced a series of tough economic reforms, including a pound floatation, deep cuts in energy subsidies and the introduction of a value-added tax, which were tied to a $12 billion IMF loan. The measures have placed financial burdens on many of Egypt’s nearly 100 million people.

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