{"id":614849,"date":"2024-02-08T00:00:00","date_gmt":"2024-02-08T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2024\/02\/08\/el-sisi-announces-egp-180-bn-package-of-wage-hikes-pension-increases-and-tax-breaks\/"},"modified":"2024-02-08T00:00:00","modified_gmt":"2024-02-08T00:00:00","slug":"el-sisi-announces-egp-180-bn-package-of-wage-hikes-pension-increases-and-tax-breaks","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2024\/02\/08\/el-sisi-announces-egp-180-bn-package-of-wage-hikes-pension-increases-and-tax-breaks\/","title":{"rendered":"El Sisi announces EGP 180 bn package of wage hikes, pension increases, and tax breaks"},"content":{"rendered":"

We\u2019re ringing in <\/strong>March<\/strong> with an <\/strong>EGP 180 bn package<\/strong> of wage hikes, pension increases, tax<\/strong> breaks:<\/strong> President Abdel Fattah El Sisi announced<\/a> yesterday a set of measures including public-sector wage hikes, income tax breaks, pension increases, and a 50% rise to the public-sector minimum wage to EGP 6k. The measures aim to alleviate the effects of the ongoing economic crisis on citizens and will come into effect starting next month.<\/p>\n

#1- Wage hikes: <\/strong>Starting 1 March, all civil servants and workers at state-owned enterprises will see their monthly salaries increase by EGP 1-1.2k. Meanwhile, the public-sector gross minimum wage will rise by 50% to EGP 6k, from EGP 4k currently. <\/p>\n

Remember: <\/strong>This will be the third time the public-sector minimum wage rises in just under a year<\/a>, and marks a 100% increase from the monthly minimum wage in February 2023. The public-sector minimum wage was last raised in September<\/a> as part of a wider package of measures aimed at supporting vulnerable households amid soaring inflation. <\/p>\n

#2- Income tax break:<\/strong> The government will raise the personal income tax exemption threshold to EGP 60k from EGP 45k currently, reducing wage tax bills paid by employers on mns of public and private-sector employees. The government had raised<\/a> the exemption to 45k from 36k in September of last year. <\/p>\n

#3- Pension increases: <\/strong>Pension payouts will rise 15% for 13 mn pensioners starting the beginning of the month. Pensioners who receive support under the Takaful and Karama program will also see their payout increase 15%. <\/p>\n

#4- Better wages for educators, doctors, nurses: <\/strong>The state will spend some EGP 15 bn to increase the wages paid out to doctors, nurses, school teachers, and university faculty. <\/p>\n

#5- Early bonuses: <\/strong>Civil servants will receive their bonuses early this year \u2014 the payout will range from 10-15% of their monthly salary with a minimum payout of EGP 150. They will also receive one-time bonus payouts of EGP 500-900 <\/p>\n

The total cost:<\/strong>The measures are expected to cost around EGP 180 bn, the statement said without specifying where the money will come from. The tax cut will cost around 5 bn a year, the pension hike EGP 79.5 bn, and the bonuses EGP 48.5 bn. <\/p>\n

The story received attention from: <\/strong>Bloomberg<\/a>, The National<\/a> and Reuters<\/a>. <\/p>\n","protected":false},"excerpt":{"rendered":"

The measures include a minimum wage hike for the public sector and a new income tax cut<\/p>\n","protected":false},"author":1,"featured_media":614850,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7206],"tags":[104,72,190,2200],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-614849","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","tag-economy","tag-enterpriseam","tag-social-welfare","tag-takaful-and-karama","wpautop","entry"],"acf":{"mongo_id":"76f901c8-012d-4de4-8d1e-eb994506231c","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2024\/2\/661.JPG","photo_position":"above","homepage_title":"","full_issue_title":"El 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