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Sunday, 12 September 2021

Pension Act exec regs gets a thumbs up from cabinet

Cabinet has greenlit executive regulations for the Social Security and Pensions Act passed in 2019, which formalized a tithe on salaries for both public and private sector workers to fund pensions. The act went into effect after being passed by the House of Representatives and ratified by President Abdel Fattah El Sisi. The base rate for contributions stands today at 21% (with employers required to contribute 12% and employees the remaining 9%). It will rise 1 percentage point every seven years until it hits 26%.

Also approved at the meeting:

  • A six-month extension of austerity measures brought in to streamline public finances last year in the wake of covid-19 economic pressures on our balance sheets.
  • A draft bill on the rights of senior citizens, which aims to provide protection and care for the elderly and ensure that they enjoy their full rights and freedoms.
  • A presidential decision approving the treaty to establish the African Medicines Agency, which will unify medical regulations among African countries and improve access to medicines.

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