The approved draft law includes the following key provisions, effective July 1, 2025:
Civil service employees: A periodic allowance of 10% of
their basic salary as of June 30, 2025, with a minimum of 150 Egyptian pounds
monthly. This will be considered part of their basic salary.
Non-civil service state employees: A special allowance of
15% of their basic salary as of June 30, 2025 (or date of appointment for new
hires), with a minimum of 150 Egyptian pounds monthly. This will be added to
their basic salary. This special allowance excludes entities already providing
annual periodic allowances of at least 10% of the basic salary, with specific
provisions for those calculating it differently.
All state employees (civil and non-civil service): An
increase of 700 Egyptian pounds per month to their existing additional
incentive, becoming part of their supplementary or variable salary.
Definition of beneficiaries: The law applies to permanent
and temporary employees with comprehensive remuneration, public position
holders with fixed grades within Egypt whose finances are budgeted, and those
governed by special employment laws, as well as employees of public service and
economic authorities.
Public and public business sector companies: A monthly bonus
equivalent to the difference between their annual periodic allowance rate and
the 15% special allowance for non-civil service state employees (capped at that
difference). This bonus will be calculated based on their existing annual
allowance rules and will be disbursed as a lump sum, not added to the basic
salary. A minimum total monthly income of 7000 Egyptian pounds (including basic
salary and fixed/semi-fixed allowances) will be ensured after these increases,
with specific rules to be set by relevant ministers.
Pension considerations: Combining the special allowance (for
non-civil service) or the company bonus with pension increases effective July
1, 2025, is restricted, with specific rules to ensure employees or retirees
receive the higher benefit.
The Minister of Finance will issue the necessary implementing regulations for most articles, while respective ministers will handle the implementation of Article Five concerning public sector companies. The law is set to take effect on July 1, 2025.