The government announced that pensions will be increased by 15% starting July, raising the minimum pension from EGP 500 to EGP 750, according to Egypt Today.

This was approved in a draft law that was passed earlier this month, along with Article 2 that states that “the minimum pension for the insured or eligible pension shall be increased from EGP 500 to EGP 750”.

The draft law states that the maximum pension shall be 80% of the settlement fee, which is the last remuneration of the speaker of the House of Representatives, prime minister and his deputies, ministries and their deputies, and governors or their last annual salary, and should not exceed the net maximum wage on the date of termination of office.

This comes at a high price; according to Minister of Social Solidarity Ghada Wali, the cost of increasing pensions by 15% is EGP 21.3 billion, and the amount allocated to pensions in the new fiscal year’s budget is EGP 150 billion.

Main image from Cairo Institute for Human Rights Studies