Egypt to raise state pensions 10 percent: Presidency

The Egyptian government will raise state pensions by 10 percent from July, according to a presidential spokesman.

Egyptian President Abdel-Fattah al-Sisi has approved a proposal to increase all pension schemes, which benefit 9 million Egyptians, by 10 percent, said spokesman Alaa Youssef according to MENA news agency.

The decision was proposed by the Social Solidarity Ministry Ghada Waly during a meeting Thursday with El-Sisi that also included Finance Minister Amr El-Garhy and Prime Minister Sherif Ismail.

Waly said the decision aims to set a minimum pension of EGP500 per month, with a minimum increase of EGP75. The measure will cost the state’s coffers some EGP15 billion and benefit 2.6 million citizens.

During the meeting, El-Sisi requested that a new pension law be drafted that would overhaul the system, which many low-income citizens complain not provide enough money for their living expenses.

The Egyptian government is aiming to decrease the budget deficit in the 2016/17 fiscal year to 9.8 percent of gross domestic product (GDP) from the current 11.5 percent, the planning minister said last month.

source: Ahram Online