[Egypt] New social protection package will increase minimum wage and tax thresholds

A new social protection package in Egypt, discussed by Prime Minister Moustafa Madbouly at his weekly media briefing, will contain increases in the minimum wage, tax thresholds, social protection coverage and pensions, EnterpriseAM reports.

According to two government sources, who spoke with EnterpriseAM, the package is expected to be approved by March or after directives have been received from the presidency. 

The package is reportedly expected to include:

• A new round of wage increases: the government intends to raise the minimum wage for civil servants and workers at state-owned enterprises. The amount of the increase has yet to be determined but EnterpriseAM’s sources anticipate the government will opt to raise the minimum wage by EGP 1k to EGP 7k, with adjustments for other income brackets.

It last increased the public sector minimum wage in early 2024, raising it by 50 per cent to EGP 6k as part of a wider EGP 180 bn social support package. 

The private sector minimum wage rose 71 per cent to EGP 6k last year, bringing it in line with the public sector

• Raising the income tax exemption threshold: The Finance Ministry is reportedly considering raising the personal income tax exemption threshold from EGP 60k to EGP 65k while keeping other income brackets unchanged.

• Expanding Takaful and Karama: The Egyptian government will increase the number of beneficiaries of the Takaful and Karama social safety program. It is expected to add between 300k-500k families to the program, with the most vulnerable households prioritised.

The package will also reportedly include a 15 per cent pension increase for 13 million pensioners.

Source: EnterpriseAM

A new social protection package in Egypt, discussed by Prime Minister Moustafa Madbouly at his weekly media briefing, will contain increases in the minimum wage, tax thresholds, social protection coverage and pensions, EnterpriseAM reports.

According to two government sources, who spoke with EnterpriseAM, the package is expected to be approved by March or after directives have been received from the presidency. 

The package is reportedly expected to include:

• A new round of wage increases: the government intends to raise the minimum wage for civil servants and workers at state-owned enterprises. The amount of the increase has yet to be determined but EnterpriseAM’s sources anticipate the government will opt to raise the minimum wage by EGP 1k to EGP 7k, with adjustments for other income brackets.

It last increased the public sector minimum wage in early 2024, raising it by 50 per cent to EGP 6k as part of a wider EGP 180 bn social support package. 

The private sector minimum wage rose 71 per cent to EGP 6k last year, bringing it in line with the public sector

• Raising the income tax exemption threshold: The Finance Ministry is reportedly considering raising the personal income tax exemption threshold from EGP 60k to EGP 65k while keeping other income brackets unchanged.

• Expanding Takaful and Karama: The Egyptian government will increase the number of beneficiaries of the Takaful and Karama social safety program. It is expected to add between 300k-500k families to the program, with the most vulnerable households prioritised.

The package will also reportedly include a 15 per cent pension increase for 13 million pensioners.

Source: EnterpriseAM