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Egypt allocates EGP 170B to increase wages & pensions in July 2025

The minimum wage will be raised to EGP 7,000, and workers will also benefit from a cost-of-living allowance of EGP 1,000 starting in July.

By: Business Today Staff

Thu, Feb. 27, 2025

Egypt plans to increase wages and pensions for state employees and pensioners, with a total allocation of EGP 170 billion starting July 2025, according to a statement by Minister of Finance, Ahmed Kouchouk.

Starting in April 2025, the monthly cash assistance for recipients of the Takaful and Karama program will be increased by 25%, totaling around EGP 13 billion until June 2026.

The minimum wage will be raised to EGP 7,000, and workers will also benefit from a cost-of-living allowance of EGP 1,000 starting in July.

 Moreover, a substantial wage increase will be applied to state workers, with a minimum rise of EGP 1,100, which could reach as much as EGP 1,600 depending on job grade.

Egypt allocates an additional EGP 4 billion to support 10 million families who are among the most in need and are registered under the food subsidy system.

These families will receive EGP 125 for those with single-member cards and EGP 250 for those with two or more members, a measure that will last for two months.

 Furthermore, during Ramadan, an additional EGP 300 will be provided to the 5.2 million families currently benefiting from the Takaful and Karama program.

This will amount to a total cost of EGP 1.5 billion, aimed at alleviating financial pressure during the holy month.

Healthcare also receives significant attention in this package. EGP 3 billion will be allocated to eliminate waiting lists for critical medical cases, ensuring that 60,000 patients will be treated under the state-funded healthcare system.

Moreover, the government will allocate additional resources to expand healthcare coverage for uninsured low-income individuals, particularly in the period from March to June 2025.

The government is also aiming to promote economic empowerment through the establishment of a EGP 10 billion fund designed to support vulnerable families and create job opportunities for young people.

 In addition, the government has committed to supporting informal workers by providing a EGP 1,500 grant for those registered with the Ministry of Labor, with an allocated budget of EGP 2 billion for the initiative until June 2026.

Farmers are not left out of this social protection plan, with a significant rise in the wheat procurement price for the 2025 season, which will now be EGP 2,200 per ardeb.

 This measure will cost the government an additional EGP 6 billion. Furthermore, cotton farmers will receive a subsidy of EGP 2,000 per quintal, adding up to a total of EGP 3.5 billion in support.

Finally, to address workforce shortages in essential sectors, the package outlines plans to hire 75,000 teachers, 30,000 doctors, and 10,000 other state employees.