Egypt launches financial, social protection measures to mitigate economic challenges

Doaa A.Moneim , Monday 21 Mar 2022

Egypt’s Ministry of Finance approved on Monday a package of financial and social protection procedures, worth EGP 130 billion, to address the ongoing global economic challenges and their repercussions.

Mohamed Maait
Minister of Finance Mohamed Maait

Minister of Finance Mohamed Maait announced these procedures shortly following the Central Bank of Egypt’s (CBE) decision to raise the key interest rates by 1 percent.

The procedures include an allocation of EGP 2.7 billion to include 450,000 new families in the Takafol and Karama social protection programme, in addition to allocating EGP 190.5 billion to disburse the annual increase in pensions with a minimum of EGP 120 per pensioner as of 1 April.

The income tax exemption limit has been increased by 25 percent from EGP 24,000 to 30,000 per individual.

Public servants will receive their yearly raise – usually disbursed within July's payroll – in April with an increase ranging from 8 to 15 percent with a minimum of an EGP 100 ceiling and without a maximum limit.

“All state employees’ monthly allowances will be raised with a lump-sum ranging from EGP 175 to EGP 400, as that will be added to April’s payrolls as well,” said Maait.

Starting from the new fiscal year 2022/2023 on 1 July, the minimum wage for public sector employees will be increased to EGP 2,700 up from 2,400 in the state budget.

The minister also noted that the customs dollar price is set at EGP 16 for basic commodities and production supplies, effective the end of April, adding that the state’s public treasury bears the real estate tax from the industrial sectors for three years with a total amount of EGP 3.7 billion.

In September 2019, the Ministry of Finance repealed the customs dollar, making it subject to the normal exchange rates set by the CBE.

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