Egypt Announces Comprehensive Economic Relief Package: Wage Hikes, Tax Breaks, and Pension Increases

President Abdel Fattah El Sisi announced yesterday Wednesday, 7 February 2024, a set of measures aimed at mitigating the impact of the ongoing economic crisis on citizens and will come into effect starting next month (March 2024).

The personal income tax exemption threshold will rise from EGP45,000 to EGP 60,000, offering relief for private sector employees together with public sector employees.

The package includes wage hikes for civil servants and workers, with the public-sector minimum wage set to increase by 50% to EGP 6,000. Additionally, the personal income tax exemption threshold will rise to EGP 60,000, providing relief for millions of public and private-sector employees. Pension payouts will see a 15% increase for 13 million pensioners, and there will be substantial wage increases for educators, doctors, nurses, and university faculty. Civil servants will also receive early bonuses, further easing financial burdens. The total cost of the measures is estimated at EGP 180 billion, with the tax cut accounting for approximately EGP 5 billion annually, pension hikes costing EGP 79.5 billion, and bonuses totaling EGP 48.5 billion.

Sources:

• https://www.facebook.com/Egy.Pres.Spokesman/posts/pfbid02syjCcJWDSkgxjoFBXzqaoPpaFXcrE5Kw64Ao4WK3cq3NidkT3rxD2FwpKo58Vdk6l
• https://enterprise.news/egypt/en/news/story/76f901c8-012d-4de4-8d1e-eb994506231c/El%20Sisi%20announces%20EGP%20180%20bn%20package%20of%20wage%20hikes,%20pension%20increases,%20and%20tax%20breaks