Ramadan: Egypt unveils EGP 200bn support package to combat rising costs

In a bid to alleviate the burden of rising living costs on citizens, the Egyptian government has announced a substantial EGP 200 billion social support package, which will be implemented during Ramadan and extended into the upcoming fiscal year.

Prime Minister Mostafa Madbouly revealed the details of the new initiative on Wednesday February 26, which is designed to provide essential financial aid to a wide range of vulnerable groups, including state employees, pensioners, farmers, and low-income families. The Government is particularly focused on those most affected by inflation, as it continues to weigh on household budgets across the country.

Key elements of the package include a 15% increase in pensions starting in July and a raise in the minimum wage for state employees to EGP 7,000 per month. In addition, the Takaful and Karama social welfare program, which benefits millions of families, will see a 25% increase in cash assistance. Finance Minister Ahmed Kouchouk outlined that, during Ramadan, each of the 5.2 million households enrolled in the program will receive an additional EGP 300. Furthermore, financial aid will be provided to around 10 million of the country’s most vulnerable families, with amounts ranging from EGP 125 to EGP 250 depending on family size. This assistance will be extended again during Eid al-Fitr.

This new social package follows two earlier relief measures, bringing the total to approximately EGP 440 billion in government spending aimed at supporting citizens through these challenging times. The ongoing economic strain, exacerbated by inflation and currency devaluation, has spurred the government to take further steps, including establishing a state-funded EGP 10 billion fund to boost economic empowerment for families, and directing an additional EGP 6 billion to support farmers. The government also intends to increase the cost-of-living allowance for public sector workers from EGP 600 to EGP 1,000, while healthcare allocations are set to rise to ensure that 60,000 eligible cases receive treatment in the coming months.