In the process of emerging from an economic crisis that led to strong austerity measures, Egypt is facing covid-19 and its consequences for its economy. This has helped to erode the purchasing power of workers, especially in the civil service.
Egyptian President Abdel Fattah al-Sisi announced on March 15, 2021 his intention to increase the minimum wage for civil servants. Egyptian presidential spokesman Bassam Rady said in a statement issued the same day.
The announcement took place during a meeting with the Prime Minister, Dr Mostafa Madbouly, and the Minister of Finance, Dr Mohamed Maait, during which the draft budget for the next fiscal year 2021/2022 was discussed.
According to the statement, the minimum salary for Egyptian public administration staff will be increased from 2,000 to 2,400 Egyptian pounds ($ 153); which constitutes an increase of 20%. Apart from that, the president ordered the establishment of provisions in favor of the workers, whether or not they are subject to the law on the civil service.
These include the “13% pension increase” and the promotion of “employees who meet the conditions for promotion on 06/30/2021”.
Regarding the draft budget for the fiscal year 2021-2022, the Minister of Finance indicated that it “aims to reduce the total deficit to around 6.6% of GDP and to achieve an initial surplus of 1.5% of GDP, while maintaining debt ratios ”, and taking into account the development of sectors such as education and health. According to the official, this will help maintain a certain stability necessary for the revival of the economy, especially in a context where factors such as covid-19 have impacted the Egyptian economy.
Source Ecofin Agency