Egypt has announced a $4 billion social support package to aid vulnerable households facing rising living costs ahead of Ramadan. Key measures include a minimum wage increase, enhanced cash transfers for low-income families, and raised pension payouts, aimed at providing relief during a period of financial hardship and inflation.
On Wednesday, Egypt unveiled an EGP 200 billion ($4 billion) social support initiative aimed at assisting vulnerable families in coping with the increasing cost of living, particularly in anticipation of Ramadan—a season known for family gatherings and celebrations. This comprehensive package includes elevated minimum wages for public-sector workers, enhanced cash support for low-income families, and increased pension payouts, all essential during these challenging times.
Prime Minister Mostafa Madbouly had previously assured citizens that additional financial assistance would be provided during the holy month. The Egyptian populace has been facing prolonged economic difficulties amid a multi-year financial crisis that has led to record-high inflation, making essential goods unaffordable for many households, despite expectations that recent IMF agreements will contribute to economic stabilization.
The announced measures include a 16% increase in the minimum wage for public-sector employees to EGP 7,000 ($138), alongside a 15% rise in pension benefits. Additionally, the financial support for recipients of Takaful and Karama, a cash assistance program endorsed by the World Bank, will increase by 25%.
During Ramadan, holders of ration cards will receive extra assistance, with the government planning to make two payments during the month, as well as during Eid Al-Fitr celebrations. These payments will be value-adjusted to either EGP 125 ($2.5) or EGP 250 ($5), depending on the family size.
In summary, the Egyptian government has initiated a robust $4 billion support package aimed at alleviating financial burdens on vulnerable households ahead of Ramadan. The measures include increased minimum wages, enhanced pension benefits, and additional support for low-income families. These actions reflect the government’s commitment to provide essential assistance amidst an ongoing economic crisis marked by high inflation and currency depreciation.
Original Source: www.newarab.com
