Egypt allocates EGP 25bn to raise public sector wages

Daily News Egypt
4 Min Read

Egypt’s Minister of Finance Mohamed Maait has confirmed, on Sunday, that EGP 25bn has been allocated to cover the increase wages for state employees that will be disbursed from July. 

The Egyptian House of Representatives approved the increases on Sunday.

The move is expected to improve wages and alleviate financial burdens, in a manner consistent with the efforts made by the state to enhance standard of living. 

The minister pointed out that the EGP 25bn has been allocated in the budget for the next fiscal year (FY 2021/22), to finance these new increases. This amount also includes periodic allowances for those covered by the civil service law, as well as other special allowances and additional incentives.

Maait added that the promotion of employees who meet the requirements will be funded on 30 June, with a total of EGP 1bn covering all promotion bonuses’ to improve employee wages. 

Moreover, a financial incentive was allocated to employees transferred to the New Administrative Capital (NAC), at a total cost of EGP 1.5bn.

The minister said that the periodic allowances for those addressed by the Civil Service Law will be calculated at 7% of the job wage, with a minimum of EGP 75 per month, and no maximum. This allowance is part of an employee’s salary, and will be added as of 1 July 2021. 

State employees who are not addressed by the Civil Service Law will have a special allowance of 13% of the basic wage, or its equivalent. 

This will be covered by the comprehensive remuneration on 30 June 2021, or upon appointment for individuals appointed after this date, with a minimum of EGP 75 per month, and no maximum. This bonus is part of the basic wage of employees, and will be added as of 1 July 2021. 

Maait noted that the monthly special allowance applies to state administrative employees, as well as those working in local administration units and permanent and temporary public bodies, and who have comprehensive remunerations.

It also includes those in public positions inside Egypt who are not addressed by the provisions of the Civil Service Law, in addition to state employees whose employment is regulated by special laws or regulations.

Maait indicated that, as of next July, the planned increase in the monthly additional incentive will be disbursed to employees addressed by the provisions of the Civil Service Law and non-addressed employees as well.

This means that employees will receive a rate of: EGP 175 for employees in the sixth, fifth and fourth categories; EGP 225 for third-degree employees; EGP 275 for second degree employees; EGP 325 for first-degree employees; EGP 350 for general managers or seniors; EGP 375 for employees in very senior positions; and EGP 400 for first degree employees or their equivalents. 

Whoever is appointed after this date will benefit from this increase. This incentive is part of the wage complementary or variable wage.

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