Finance Minister Youssef Boutros-Ghali confirmed that the government would begin disbursing approved pension increases to approximately 3.7 million citizens, who account for 48 percent of Egyptian pension holders, on Thursday.
In a statement on Wednesday, Boutros-Ghali explained that the raises represented the first tranche of increases specified by the new Social Insurance and Pension law, which aims to raise pensions widely seen as inadequate. He went on to note that the new leglislation, expected to take full effect by 2012, would cost the government LE1.5 billion during the current financial year.
The minister added that, under the new law, no one would receive monthly pensions of less than LE123.6. Maximum monthly pensions, meanwhile, would be raised to LE1400.
“Current pensions will be more than doubled,” he stated.
According to Boutros-Ghali, the law will raise new pensions as well, which will be set at a minimum of LE160 per month, effective immediately.
Translated from the Arabic Edition.