{"id":660094,"date":"2025-02-06T00:00:00","date_gmt":"2025-02-06T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2025\/02\/06\/new-social-protection-package-to-come-into-effect-in-july-announcement-to-come-within-days\/"},"modified":"2025-02-06T00:00:00","modified_gmt":"2025-02-06T00:00:00","slug":"new-social-protection-package-to-come-into-effect-in-july-announcement-to-come-within-days","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2025\/02\/06\/new-social-protection-package-to-come-into-effect-in-july-announcement-to-come-within-days\/","title":{"rendered":"New social protection package to come into effect in July \u2014 announcement to come within days"},"content":{"rendered":"

We\u2019ll officially know the ins and outs of the new social protection package \u201cwithin days,\u201d <\/strong>Prime Minister Moustafa Madbouly said during his weekly presser (watch, runtime: 19:57<\/a>) yesterday. The package of minimum wage hikes and pension increases will come into effect starting the next fiscal year, which starts in July, he added. <\/p>\n

(Tap or click the headline above to read this story with all of the links <\/strong>to our background as well as external sources.) <\/p>\n

As things stand: <\/strong>The package is undergoing discussions and will be presented to President Abdel Fattah El Sisi once it's finalized, Madbouly said. \u201cWe hope to announce it within the coming days,\u201d he continued. <\/p>\n

What we know about the package:<\/strong> The government is planning to raise the minimum wage for civil servants and workers at state-owned enterprises by EGP 1.5k to EGP 7.5k, a senior government source told EnterpriseAM yesterday. This is higher than the previously reported<\/a> incoming increase that suggested a new minimum wage of EGP 7k. The government will also raise the exceptional cost of living allowance to EGP 1k, with an increase of EGP 600 for special cadres, including doctors and teachers, the source said.<\/p>\n

Some <\/strong>13 mn pensioners could also receive a 15% pension increase<\/strong>, our source confirmed. The package could also see the addition of 500k families to the Takaful and Karama social safety program, prioritizing those most vulnerable, and an increase in the personal income tax exemption threshold to EGP 65k \u2014 up from EGP 60k previously \u2014 while keeping other income brackets unchanged, the source added.<\/p>\n

The <\/strong>government is required to do this under its agreement with the IMF, but the <\/strong>government will try to push to extend timelines <\/strong>to not \"exacerbate the resulting inflationary burdens,\u201d Al Ahly Pharos Senior Economist Esraa Ahmed told EnterpriseAM. But whether or not the IMF agrees to push deadlines to completely turn off the tap for certain subsidies the government will still need to \u201cimplement certain social protection measures simultaneously or even proactively,\u201d according to Ahmed.<\/p>\n

ALSO FROM MADBOULY\u2019S PRESSER- <\/p>\n

A new energy find in the Mediterranean: <\/strong>Energy giant BP has made a fresh discovery off the North Coast in its King Mariout offshore concession, with initial reports suggesting the site could yield both gas and oil. More data is expected soon, but officials believe this could be the first of several finds in the area, Madbouly said.<\/p>\n

Remember: <\/strong>Egypt awarded BP<\/a> an offshore exploration block in the concession back in 2022, giving it 100% of the exploration rights for the area. <\/p>\n

AND- <\/strong>The government is looking to see exports growing at an annual rate of 15-20% to achieve a trade surplus before 2030, Madbouly said, pointing to agriculture exports, which hit a record USD 10.6 bn last year.<\/p>\n","protected":false},"excerpt":{"rendered":"

The government is planning to raise the minimum wage for civil servants by 1.5k to EGP 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