Egypt unveils EGP 200bn social safety net ahead of Ramadan
The Egyptian government has launched a social support package valued at EGP 200bn to assist citizens facing rising prices. Prime Minister Mostafa Madbouly announced the measures on Wednesday, stating that the package will be implemented during Ramadan and the upcoming fiscal year.
The package includes increasing pensions by 15% beginning in July and raising the minimum wage for state employees to EGP 7,000 per month. Additionally, the Takaful and Karama social welfare programme will see a 25% increase in cash support for beneficiaries. Support will also be extended to farmers and those most in need.
According to Finance Minister Ahmed Kouchouk, during Ramadan, each of the 5.2 million families benefiting from the Takaful and Karama programme will receive EGP 300. Kouchouk added that the government would increase allocations for state-funded medical treatment, aiming to treat all 60,000 eligible cases in March and April.
The Egyptian government also announced that roughly 10 million of the neediest families holding ration cards would receive financial assistance ranging from EGP 125 to EGP 250 during Ramadan, depending on family size. This assistance will be repeated during Eid al-Fitr.
The new measures follow two previous support packages totalling EGP 240bn, implemented to alleviate the rising cost of living. The first, introduced in September 2023, saw an increase in the cost-of-living allowance for public sector employees to EGP 600 and raised the minimum income for sixth-grade employees to EGP 4,000. In February, the government raised the minimum wage by 50 per cent to EGP 6,000 per month.
Prime Minister Madbouly committed to introducing the support measures before Ramadan, noting that the government would take “exceptional measures” during the holy month and Eid celebrations.
The package also includes the establishment of a state-funded fund of EGP 10bn to promote economic empowerment for Egyptian families. Farmers will receive additional financial assistance totalling EGP 6bn.
The government estimates the total cost of the social package over the next two months at approximately EGP 40bn, with the wage increases alone costing EGP 85bn in the next fiscal year, according to Finance Minister Kouchouk.
The cost-of-living allowance for public sector employees will increase from EGP 600 to EGP 1,000. A fixed allowance of EGP 300 will be disbursed to government employees starting in July.
Kouchouk stated that the Insurance Authority would soon release details regarding the pension increase.
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