Sabry added that this move aims to alleviate the impact of the global economic situation on the public, especially with the approach of the holy month of Ramadan.<\/p>\n
\u201cThis step aligns with President Abdel Fattah El-Sisi\u2019s directives to support citizens and alleviate their financial burdens, given the unprecedented rise in price levels and inflation,\u201d Sabry added in a phone call with the Salet El-Tahrir TV show on Sada El-Balad channel.<\/p>\n
The anticipated wage increases will be the third in\u00a0a year.<\/p>\n
Egypt\u2019s headline inflation rates increased significantly throughout the first nine months of 2023, reaching a worrisome peak of 40.3 percent in September.<\/p>\n
As of October, the inflationary trend began to slow down, with the annual headline inflation rate dropping\u00a0to 35.2 percent in December 2023.<\/p>\n
Prices, however, continued to rise, with experts attributing the matter to\u00a0the pricing\u00a0<\/u>of goods and services per the USD exchange rate in the black market rather than the official exchange rate in banks.<\/p>\n
Under an ongoing $3 billion\u00a0program with the International Monetary Fund, the local market is anticipating\u00a0a fourth wave of the local currency devaluation\u00a0against the US dollar.<\/p>\n
Sabry clarified that the anticipated raises in wages and pensions are pending approval of the finance ministry.<\/p>\n
On Saturday, Minister Mohamed Maait revealed that the government is preparing to introduce a comprehensive\u00a0social protection package,\u00a0 including wage\u00a0and\u00a0pension adjustments and changes to\u00a0the tax exemption threshold.<\/p>\n
Regarding the tax exemption threshold, Sabry said the step aims to encourage investment and enhance the private sector\u2019s role in the economy.<\/p>\n
In September, El-Sisi\u00a0announced a series of measures\u00a0to alleviate financial strains on citizens, including raising the minimum wage for public sector employees from EGP 3,500 to EGP 4,000.<\/p>\n
El-Sisi raised the annual income tax exemption threshold by 25 percent, from EGP 36,000 to EGP 45,000.<\/p>\n