{"id":658444,"date":"2025-01-12T00:00:00","date_gmt":"2025-01-12T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2025\/01\/12\/madbouly-government-preparing-to-raise-the-minimum-wage-tax-thresholds-social-protection-coverage-and-pensions-in-new-social-protection-package\/"},"modified":"2025-01-12T00:00:00","modified_gmt":"2025-01-12T00:00:00","slug":"madbouly-government-preparing-to-raise-the-minimum-wage-tax-thresholds-social-protection-coverage-and-pensions-in-new-social-protection-package","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2025\/01\/12\/madbouly-government-preparing-to-raise-the-minimum-wage-tax-thresholds-social-protection-coverage-and-pensions-in-new-social-protection-package\/","title":{"rendered":"Madbouly government preparing to raise the minimum wage, tax thresholds, social protection coverage, and pensions in new social protection package"},"content":{"rendered":"

Gov\u2019t readies new social protection package:<\/strong> The Madbouly government\u2019s new social protection package that Prime Minister Moustafa Madbouly teased at his most recent weekly presser will contain raises in the minimum wage, tax thresholds, social protection coverage, and pensions, two government sources told EnterpriseAM. The package is expected to be approved by March or after receiving directives from the presidency, our sources said. Here\u2019s what we expect the package to include: <\/p>\n

#1- Another round of wage hikes: <\/strong>The government is planning on raising the minimum wage for civil servants and workers at state-owned enterprises. While the size of the increase has not yet been decided on, our sources anticipate the government to opt to raise the minimum wage by EGP 1k to EGP 7k, with adjustments for other income brackets.<\/p>\n

Remember: <\/strong>The government last increased the public sector minimum wage early last year, raising it by 50% to EGP 6k<\/a> as part of a wider EGP 180 bn social support package. The private sector minimum wage also rose<\/a> 71% to EGP 6k last year, bringing it in line with the public sector<\/p>\n

#2- Raising the income tax exemption threshold:<\/strong> The Finance Ministry is looking into raising the personal income tax exemption threshold to EGP 65k \u2014 up from EGP 60k previously \u2014 while keeping other income brackets unchanged, our sources said.<\/p>\n

#3- Expanding Takaful and Karama:<\/strong> The government intends to increase the number of beneficiaries of the Takaful and Karama social safety program. The government is expected to add between 300k-500k families to the program, prioritizing those most vulnerable. <\/p>\n

#4- Larger pensions:<\/strong> The package will also include a 15% pension increase for 13 mn pensioners.<\/p>\n

The final price tag? <\/strong>It remains undecided how much the package will set back the Madbouly government, but the figure is being studied and will soon be presented by the Finance Ministry to the cabinet. <\/p>\n

D\u00e9j\u00e0 vu? <\/strong>Last year also kicked off with a big support package that included wage hikes, pension increases, and tax breaks to alleviate the effects of the economic crisis on citizens.<\/p>\n

ALSO COMING SOON- <\/strong>The move away from subsidies and to direct cash-based assistance<\/a> is also fast approaching, with the government looking to gradually start implementing the change starting from the next fiscal year starting with four governorates before applying it nationwide. The move is awaiting the National Dialogue\u2019s proposals and the necessary data from the Supply Ministry that will help authorities decide on the amount of cash support to be disbursed, the sources told us.<\/p>\n

Want the full story? <\/strong>We dove into everything you need to know about the move to cash-based subsidies in a story published last September<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

The package is expected to be approved by March<\/p>\n","protected":false},"author":1,"featured_media":658445,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","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-658444","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":"b3c5911b-91c7-4078-b3d6-2c00489666fb","order":"4","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2025\/1\/542.jpg","photo_position":"above","homepage_title":"","full_issue_title":"Egypt is preparing to raise the minimum wage, tax thresholds, social protection coverage, and pensions in new social protection package","related_issue":[658439],"teaser":"The package is expected to be approved by March","voice_url":"https:\/\/s3.us-east-1.amazonaws.com\/ent.news\/audio\/2025\/1\/.2b19ab3a-c30b-460a-8d5a-9d613f6c7ba4.mp3"},"yoast_head":"\nMadbouly government preparing to raise the minimum wage, tax thresholds, social protection coverage, and pensions in new social protection package - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/egypt\/2025\/01\/12\/madbouly-government-preparing-to-raise-the-minimum-wage-tax-thresholds-social-protection-coverage-and-pensions-in-new-social-protection-package\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta 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"Economy"","block_context":{"text":"Economy","link":"https:\/\/enterpriseam.com\/egypt\/category\/economy\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2025\/2\/2649.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":550431,"url":"https:\/\/enterpriseam.com\/egypt\/2022\/10\/27\/govt-announces-raft-of-measures-to-help-with-cost-of-living-post-economic-conference\/","url_meta":{"origin":658444,"position":3},"title":"Gov\u2019t announces raft of measures to help with cost of living post-economic conference","author":"enterpriseam admin","date":"27 October 2022","format":false,"excerpt":"Gov\u2019t unveils public-sector minimum wage rise + extends freeze on household electricity prices: The government is pushing ahead with a raft of fresh social protection measures that are set to cost the state some EGP 67 bn per year, Prime Minister Mostafa Madbouly said yesterday, according to a statement. A\u2026","rel":"","context":"In "Economy"","block_context":{"text":"Economy","link":"https:\/\/enterpriseam.com\/egypt\/category\/economy\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2022\/10\/347.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":687297,"url":"https:\/\/enterpriseam.com\/egypt\/2026\/03\/10\/egypt-to-unveil-fresh-social-support-package-as-egp-dips-further\/","url_meta":{"origin":658444,"position":4},"title":"Egypt to unveil fresh social support package as EGP dips further","author":"enterpriseam admin","date":"10 March 2026","format":false,"excerpt":"Gov\u2019t braces for further weakening with deep spending cuts and a boost to minimum wage","rel":"","context":"In "The Big Story Today"","block_context":{"text":"The Big Story Today","link":"https:\/\/enterpriseam.com\/egypt\/category\/the-big-story-today\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2026\/3\/536.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":550444,"url":"https:\/\/enterpriseam.com\/egypt\/2022\/10\/27\/last-nights-talk-shows-the-govt-giving-tree\/","url_meta":{"origin":658444,"position":5},"title":"Last Night\u2019s Talk Shows: The gov\u2019t giving tree","author":"enterpriseam admin","date":"27 October 2022","format":false,"excerpt":"It was all about the gov\u2019t\u2019s new social protection package last night: The talking heads spent their night diving deeper into the latest package of social protection measures announced by the Madbouly government. 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