Egypt agrees to raise salaries ahead of fuel, service prices hike

The Egyptian Parliament has accepted a government proposal to increase the basic salaries and pensions of state employees as of 1 July, Chairman of the Egyptian Trade Union Federation (ETUF) Gebali Al-Maraghi said.

Al-Maraghi told Quds Press yesterday that basic salaries will increase by at least 230 Egyptian pounds ($13) which would cost the government 22 billion pounds ($1.22 billion), adding that the pensions would rise 15 per cent at a cost of 28 billion pounds ($1.56 billion).

Observers said the Egyptian government’s measure is an effort to absorb public anger before fuel prices rise 60 per cent, electricity increases 50 per cent and water 43 per cent.

The government proposed the “social protection package” in coordination with the International Monetary Fund, they said.

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The Egyptian government has recently increased the price of metro tickets by more than 300 per cent, and drinking water by 50 per cent.

A member of the economic committee in the Egyptian Parliament, Ashraf Al-Araby said in a press statement that the social package will benefit state employees not those working in the private sector who have fixed incomes.

Egypt has been implementing a tough reform plan for two years which has resulted in increasing fuel prices as well as a reduction in state subsidies.