Annual budget of EGP 150 bln set for raising salaries, pensions

The money will be disbursed as of April as part of the state’s efforts to contain the international wave of inflation and alleviate burdens on the public, he said in a statement.

The minimum salary increase is EGP 1,000, he said, noting that a periodical bonus of 8 percent is included in this package under the civil service law.

Maait added that the state treasury will bear about EGP 8 billion by expanding the tax exemption limit on annual income by 24 percent, from EGP 24,000 to EGP 30,000.

The state will also bear about EGP 6.5 billion annually for a 25 percent rise of monthly funds allocated for beneficiaries of the Takaful and Karama solidarity program as of April, he said.

Maait added that about EGP 55 billion annually will be earmarked for a 15 percent uptick in pensions with a minimum of EGP 170 and a maximum of EGP 1,635.

He said that as per President El-Sisi's directives, government employees covered by the Civil Service Law will also receive a periodic bonus of a minimum of EGP 125 (8 percent) starting 1 July. The same will apply for those not covered by the Civil Service Law starting 1 April.

Maait also said in an interview with Al-Ahram newspaper on Saturday that the current FY 2022/23 budget's reserve allocations will be used to fund President El-Sisi's new social initiative.

"These reserve amounts will be redirected to the budget's wage allocations to spend on the president's initiative," said Maait, indicating that "the Finance Ministry will make sure that the new hike in wages and pensions will go into effect as of 1 April in line with President El-Sisi's initiative."

"The government is doing its best to alleviate the burdens of the inflationary wave triggered by this war," said Maait, insisting that "the Egyptian economy has so far proved resilient in the face of global economic crises which have hit hard most world countries."