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FINANCIAL NEWS
Egypt to introduce unemployment benefits
14 Jun 2010
(MENAFN) Egypt’s parliament has approved a draft of a pension and social insurance law, which raises the retirement age, forces employers to contribute to pension payments and introduces unemployment coverage for the first time, Reuters reported.
But a clause threatening prison for violations was dropped after complaints from company executives.
The new law aims to reduce public spending and boost growth. This law raised the retirement age to 65 from 60 for workers entering the workforce from 2012. It also stipulated the establishment of a pension and unemployment fund for each employee, in the public and private sectors, into which employers and employees will contribute.
The Finance Ministry expects the bill to save the government money and boost the country’s gross domestic product (GDP) growth to 9 percent in 2012 after it comes into effect, from 5 percent GDP growth last year.
Abdel Aziz Mostafa, vice speaker of the People’s Assembly, said that the parliament has approved the final draft of the bill, and now it will be raised to the President for enactment.
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