Egypt launches EGP 200B support package to ease inflation impact
Updated 2/27/2025 7:22:00 AM
Arab Finance: Egypt has introduced a new EGP 200 billion ($4 billion) social package to support groups affected by rising prices during Ramadan and the upcoming fiscal year, as per a statement.
The package includes raising the minimum wage for state employees to EGP 7,000 per month, increasing pensions, and boosting cash support for beneficiaries of the Takaful and Karama program by 25%. It also provides assistance to farmers and low-income groups.
The government approved a 15% pension increase starting in July, with the National Authority for Social Insurance set to announce further details.
The total cost of the package over the next two months is estimated at EGP 40 billion, while wage increases alone will amount to EGP 85 billion for the next fiscal year (FY).
Minister of Finance Ahmed Kouchouk said the exceptional cost-of-living allowance for public sector employees will rise from EGP 600 to EGP 1,000, alongside a lump sum allowance of EGP 300 for government employees, effective in July.
A new EGP 10 billion state-financed fund will also be established to promote economic empowerment for Egyptian families, with an additional EGP 6 billion allocated to support farmers.
During Ramadan, each beneficiary of the Takaful and Karama program, currently 5.2 million families, will receive an extra EGP 300.
Financial aid of EGP 125 to EGP 250 will also be provided to 10 million families on the most needy ration cards, with payments repeated during Eid El-Fitr.
The government has also approved increased state-funded treatment allocations to cover 60,000 eligible cases in March and April.
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