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Egypt refuses pay rise for civil servants

A souq in Aswan, Wgype [Wikimedia/Karelj]
A souq in Aswan, Wgype [Wikimedia/Karelj]

Egypt’s Ministry of Finance has rejected suggestions it raise the salaries of its employees, the ministry’s spokesperson revealed today.

Ahmed Hassan added that a pay rise could result in a new surge in the inflation rate which would subsequently lead to a notable increase in the price of goods and services. It could negatively affect the country’s budget deficit and the private sector’s salaries, forcing private businessmen to gradually lay-off their manpower, he warned.

He called on the parliament to postpone taking a decision on this topic until the country’s budget for the coming financial year (2017-18) is set.

Egyptian parliamentary ministers have recently had a salary increase.

Prices of goods and services have seen a large jump in recent months in Egypt as inflation hit its highest levels in a decade since Egypt abandoned its currency peg to the US dollar on 3 November.

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