Government approves social allowance to ease high cost of living

CAIRO – 11 July 2017: The Egyptian official Gazette published Monday the Minister of Finance’s decision No. 184 of 2017 amending some provisions of law No. 79 of 1975 on social allowance for those falling under the Civil Service Law.

The ministry approved in May the amendments to the Social Allowance Law for workers and employees working under the Civil Service Law.

There are around 6.5 million workers in Egypt working for governmental institutions, with only 3.5 million working uder the Civil Service Law.

The first article in the decision stipulates paying a minimum of LE 65 ($3.63) as a periodic allowance to the basic salary without a maximum limit, applied on July 1.

The amendments also stipulate providing an exceptional allowance of 7% to the basic salary for those falling under the Civil Service Law, applied on June 30. For those who were appointed after this date, they will receive a minimum of LE 65 and a maximum of LE 130.

The ministry’s decision aims to ease the burden on low-income and middle-income people from the inflationary effects of economic reforms, notably the flotation of the pound, raising of interest rates, hiking fuel prices and application of the value-added tax.