Cairo, Egypt | May 2025 — In a move aimed at alleviating economic burdens and enhancing social protection, the Egyptian Cabinet, headed by Prime Minister Dr. Mostafa Madbouly, has approved a draft law that introduces a new salary raise package for public sector employees, effective July 1, 2025. The decision comes in response to directives issued by President Abdel Fattah El-Sisi to implement a comprehensive social support program amidst rising living costs.
The draft law outlines a minimum monthly raise of EGP 150 for employees covered under the Civil Service Law as well as those who are not, with adjustments to regular allowances and incentive bonuses. This legislative package seeks to provide broad financial support to government employees, state institutions, and workers in public sector companies.
Key Provisions of the Draft Law:
- Article 1 grants a 10% annual raise to employees governed by the Civil Service Law (Law No. 81 of 2016), based on their June 30, 2025 salary, with a minimum increase of EGP 150 per month. This raise will be integrated into their functional salary starting July 1, 2025.
- Article 2 stipulates a 15% special allowance for state employees not subject to the Civil Service Law, calculated from their basic salary as of June 30, 2025 (or appointment date if later), also with a minimum of EGP 150 per month. This amount becomes part of their basic wage from July 1, 2025. However, this allowance does not apply to public service and economic authorities or any public legal entities already granting an annual raise of 10% or more. In such cases, a supplementary allowance will be calculated to cover the difference.
- Article 3 increases the monthly additional incentive by EGP 700, benefiting both Civil Service employees and others. The bonus is classified as part of the “complementary or variable salary” and also applies to newly hired employees after July 1.
- Article 4 defines eligible beneficiaries as all permanent or temporary government employees, including those on fixed salaries, public officials, and those in state institutions regulated by special laws or internal bylaws.
- Article 5 grants public sector and state-owned enterprise employees a monthly grant from their respective budgets. This grant covers the gap between their regular annual raise and the special allowance detailed in Article 2. If the total monthly income of any employee in these entities remains below EGP 7,000 after applying the increases, the law mandates adjusting the income to reach that amount.
- Article 6 prevents dual benefits for employees eligible for both the special allowance and a pension increase. In such cases, the worker will receive the higher of the two or the difference if applicable.
- Article 7 assigns the Ministry of Finance the responsibility of issuing executive regulations, while relevant ministers will oversee the application of provisions concerning their sectors.
- Article 8 confirms the law’s enforcement date as July 1, 2025.
This legislative step reflects the Egyptian government’s commitment to enhancing income levels and mitigating economic pressures on citizens, particularly amid ongoing inflation and global financial uncertainty.