Parliament's Manpower Committee Approves Draft Law on Salary Increases, Bonuses for State Employees

Egypt Today

18-05-2025

File- An employee counts money at an exchange office in downtown Cairo (Photo credit: Reuters/Amr Abdallah Dalsh)
CAIRO – 18 May 2025: The House of Representatives' Manpower Committee, chaired by Representative Adel Abdel Fadil Ayad, approved on Sunday a government-submitted draft law outlining new salary increases and bonuses for state employees. The bill includes provisions for periodic bonuses, special grants, and additional incentives aimed at alleviating the rising cost of living.
The committee is preparing its final report on the draft legislation, which will be submitted to the House in the upcoming sessions.
The draft law follows presidential directives to launch a new social protection package in response to the country's current economic challenges and inflationary pressures.
Key Provisions of the Draft Law
Article 1: Employees subject to the Civil Service Law (Law No. 81 of 2016) will receive a periodic bonus equivalent to 10 percent of their basic salary as of June 30, 2025, with a minimum of LE 150 per month. This bonus will be integrated into their basic salary starting July 1, 2025.
Article 2: Employees not covered by the Civil Service Law will receive a special bonus of 15 percent of their basic salary as of June 30, 2025 (or on the date of appointment for new hires), also with a minimum of LE 150 per month. This amount will be incorporated into their basic salary from July 1, 2025.
The provision excludes public service agencies and public economic entities already offering periodic bonuses of 10percent or more. In such cases, if a bonus is calculated as a percentage of the basic salary, employees will receive a special bonus equal to the difference between the legislated 15 percent and the bonus already provided. This amount will also be added to the basic salary.
Article 3: Effective July 1, 2025, an additional fixed monthly incentive of LE 700 will be granted to all eligible employees, whether or not they are subject to the Civil Service Law. The amount will be treated as part of the employee's supplementary or variable wage, depending on employment classification.
Article 5: Employees of public sector and public business sector companies will receive a monthly bonus starting July 1, 2025. This bonus will equal the difference between their recurring annual bonus and the special bonus granted to non-Civil Service Law employees under Article 2. The bonus will be disbursed as a lump sum and not included in the basic wage.
Furthermore, if an employee's total monthly earnings—including wages, allowances, and fixed or semi-fixed bonuses—fall below LE 7,000 after these increases, their income will be topped up to meet the minimum threshold. The relevant ministers will issue executive regulations to implement this provision.
Article 7: The Minister of Finance will issue the necessary executive decisions to enforce the provisions of this law, while other ministers will issue related decisions for Article 5 as applicable.
Article 8: The law will come into effect on July 1, 2025.
Pension Increases Clarified
During the session, committee members inquired about pension increases and why they were not included in the draft law. A representative from the Ministry of Finance, Ali El-Sisi, clarified that pension increases are governed separately under the Social Insurance and Pensions Law, which was amended in previous years.
He explained that while pension increases were previously scheduled for April 1, this year's increase will be implemented on July 1, through a presidential decree based on the Social Insurance Law. This law ties the increase to inflation rates, with a cap of 15 percent.
Budget Allocations and Salary Floors
Finance Ministry officials confirmed that LE 85 billion has been allocated to fund these increases. The minimum monthly salary increase for the lowest-grade employee (Grade 6) will be LE 1,100, with proportionally larger increases for higher grades.