President Al-Sisi orders wage increase for public workers in 2020/21 budget

Daily News Egypt
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Granting additional incentive to all employees and workers with financial categories ranging from EGP 150 to EGP 375 per month to improve standard of living

EGP 188m made available immediately to Ministry of Health, out of EGP 100bn approved by President to deal with the Corona virus

Minister of Finance Mohamed Moeit said President Abdel Fattah Al-Sisi instructed the government to increase wages of workers in the public sector in the next fiscal year (FY) 2020/21, within the framework of the state’s keenness that all society segments benefit from the fruits of economic reform.

The minister said, in a press conference on Sunday, that the next general budget will witness a package of measures that contribute to improving the financial conditions of public workers.

Moreover, the income tax exemption limit has been increased from EGP 8,000 to EGP 15,000, in addition to the personal exemption of EGP 7,000, thus the monthly income up to EGP 24,000 (which is EGP 22,000 after deducting insurance) will be exempted from taxes. A new tax bracket of 2.5% instead of 10% will be created, which will reflect positively on public employees’ net incomes.

He added that in the next fiscal year, employees addressed by the Civil Service Law will be granted a periodic bonus of 7% on 30 June, with a minimum of EGP 75 per month and no maximum. Workers who are not addressed by the law will be granted 12% of the basic salary on 30 June with a minimum of EGP 75 per month and no maximum, instead of the usual 10% every year. This comes with the aim of increasing the value of what they charge for being equal to their peers in the corresponding job levels in civil service.

He pointed out that during the next fiscal year, additional incentives will be granted to all workers and employees in the state with financial categories that took into account third ranks and above, as in previous years, fourth, fifth, and sixth ranks got more benefits. They would be receiving: EGP 150 per month for occupants of the fourth, fifth, and sixth ranks, or their equivalent, EGP 200 for third rank or its equivalent, EGP 250 per month for second ranks or their equivalent, and EGP 300 for occupants of the first rank or its equivalent. EGP 325 per month are allocated occupants of a rank of a general manager or its equivalent, and EGP 350 per month for the rank of an undersecretary of the ministry or its equivalent, and EGP 375 per month for premium-class occupants or its equivalent.

He stressed that there are presidential assignments to provide the necessary financial allocations to implement the comprehensive state plan in dealing with any possible repercussions of the Coronavirus. A total of EGP 1bn was allocated to deal with the effects of the virus spread, of which EGP 187.6m have been made available immediately to the Ministry of Health from the approved financial allocations, including EGP 153.5m to purchase raw materials and supplies to counter the spread of the new Coronavirus, and EGP 34.1m as incentive bonuses for quarantine workers and isolation hospitals.

The Ministry of Finance will immediately provide any amounts required from the Ministry of Health or any other competent authorities to counter this virus.

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