The new Pension and Social Insurance Law, which has been recently approved by both Al-Shura Council and the People's Assembly, in line with President Mubarak's directives, will fully come into force in 2012, except for the part relating to raising low pensions, said Dr. Youssef Boutros Ghali, the Minister of Finance

The relevant provision on low pensions will be applied as of today, leading to the disbursement of the largest rise in the history of Egypt's insurance and pension system. 3.7 million pensioners and their families (48% of the total number of eligible persons) will benefit from this rise.

The decision to increase low pensions will cost the public treasury about L.E. 1.5 billion in the year 2010/2011 only, the minister noted. By 1/7/2010, the current minimum pension (the so-called Sadat pension and comprehensive pension categories) will be L.E. 123.60. Any new pension will not be less than L.E. 160 and the ceiling for any pension calculated as of today will be raised up to L.E. 1400 in accordance with recent resolutions.

The raise will not be limited to current pensioners who get less than 370 pounds, but will also include all new pensions from now on. As a result, the cost of readjusting low pensions in the coming years will exceed L.E.1.5 billion and will be fully borne by the public Treasury, Dr. Ghali added.

As of today no pension in Egypt will be under 123.60 pounds. This includes Sadat's pension (currently about L.E. 69) and the comprehensive pension (currently about L.E 79), while the value of very low pensions will be doubled, Dr. Ghali asserted.