Gov. Cuts 1% of Income, 0.5% of Pensions to Face Coronavirus

The Egyptian cabinet announced in a statement on Wednesday that starting from July 2020, and for a period of 12 months, 1% of the net income of workers in all sectors of the state, and 0.5% of pensions will be cut to contribute to facing some economic repercussions resulting from the spread of the novel coronavirus (COVID-19).

According to the new draft law, those whose net monthly income does not exceed 2000 pounds will be exempt from participation as well as workers in sectors economically affected by the virus outbreak, as stated in Article 1 of this law.

The bill decided to allocate the value of the symbiotic contribution to face the consequences of the novel coronavirus, in particular financial support for the economic and productive sectors as well as facilities, companies and projects negatively affected by deadly virus.

The cabinet stated that the financial contribution will be disbursed to workers in these sectors, institutions and projects, especially medical research and the newly established comprehensive health care system, in addition to inpiduals and families in need.

The draft law also stipulated the Ministry of Finance to establish an account at the Central Bank within the treasury account under the title “Account for dealing with epidemics and crises” in which the sums to be deducted shall be deposited according to the provisions of this law, and such proceeds shall be disbursed for the purposes designated for them.

Bodies included in the new law to tackle coronavirus

The cabinet noted that contributors will include the state’s administrative apparatus, local administration units, public service, economic bodies, and those bodies that have independent budgets, or ones, who are covered by the state’s public budget.

Likewise, workers in the public business sector companies, and companies in which the state owns a percentage of, workers in the private sector, and banks, including workers in units of a private nature, accounts, and special funds, whether permanent or temporary, all will have to contribute to the symbiotic endowment. 

it is noteworthy that the Egyptian cabinet approved, at the end of last month, necessary procedures needed to obtain a concessional financing from the World Bank (WB) to help support the country’s newly adopted comprehensive health insurance system.

Meantime, the Egyptian Health Ministry Egypt confirmed today 745 new coronavirus cases, to bring the total confirmed cases to 14,229.