Egypt has launched a new social package on Thursday to support groups impacted by rising prices, worth LE200 billion (US$4 billion) during Ramadan and the new fiscal year, Prime Minister Mostafa Madbouly announced.
Ashraq Business reported that this new package includes raising the minimum wage for state employees to LE7,000 per month, in addition to increasing pensions, providing cash support for beneficiaries of the “Takaful and Karama” program by 25 percent, and support for farmers and those most in need.
This package comes after Egyptian Prime Minister pledged to launch it before the start of Ramadan, noting that the government will take exceptional measures during the holy month and Eid.
Pensions raised by 15 percent
The government approved a 15 percent increase in pensions starting next July, and Finance Minister Ahmed Kojok said that the Insurance Authority will announce the details of the increase soon.
The government estimated the cost of the social package at about LE40 billion over the next two months, while the increase in wages alone amounts to LE85 billion for the next fiscal year.
Kojok said that the exceptional cost of living allowance for public sector employees will be raised from LE600 to LE1,000, in addition to disbursing a fixed allowance of LE300 for government employees, starting from the new fiscal year next July.
The new package includes the establishment of a fund worth LE10 billion, funded by the state, to achieve economic empowerment for Egyptian families.
The coming period will also witness financial facilitations to support farmers with an additional six billion pounds.
During the holy month of Ramadan, LE300 will be disbursed to each beneficiary of the Takaful and Karama program, which currently includes 5.2 million beneficiary families, according to the Egyptian Minister of Finance.
Aid for 10 Million Egyptian Families
The Egyptian government said that financial aid will be disbursed to about 10 million families on ration cards most in need, ranging from LE125-250 during Ramadan (depending on the size of each family) and will be repeated during Eid al-Fitr.
The government approved an increase in state-funded treatment allocations, according to Kojok, noting that the aim is to treat all eligible cases at the state’s expense, numbering 60,000 cases during March and April.
Simultaneously with raising the prices of many government services, which affected inflation rates, Egypt previously implemented two packages to alleviate living burdens on citizens, worth LE240 billion.
The first was in September 2023, when President Abdel Fattah al-Sisi directed the government to increase the exceptional cost of living allowance for public sector employees to LE600, instead of LE300, and to increase the minimum income for the sixth grade, to become LE4,000 LE, instead of LE3,500.
Then in February, the government decided to raise the minimum wage by 50 percent to reach LE6,000 per month.
