7 key changes in Egypt’s social protection system for 2025

Egypt is rolling out a record EGP 635 billion social protection budget for FY 2024/2025, reinforcing its commitment to economic security, poverty reduction, and financial inclusion. Alongside this, the government is finalizing a new social protection package to expand coverage, introduce economic empowerment programs, and strengthen social justice measures.

Here are 7 key changes shaping Egypt’s evolving social protection framework in 2025.

1. A record-high social protection budget

The Egyptian government has allocated EGP 635 billion to fund healthcare, housing, food subsidies, pensions, and cash assistance. This substantial increase signals a shift toward long-term, sustainable social safety nets rather than short-term relief.

• More investment in social housing for low-income families.


• Expansion of subsidized food programs to stabilize essential goods prices.


• Improved pension and social insurance systems to ensure financial security for retirees and vulnerable groups.

This budget reflects a broader strategy to balance economic growth with social justice, ensuring that economic reforms translate into tangible benefits for citizens.

2. A new social security law for inclusive coverage

Egypt recently passed a new Social Security Law, which guarantees universal social protection for individuals not covered by traditional insurance systems. Key features include:

• A legal mandate ensuring every Egyptian has access to social security, regardless of employment status.


• Better targeting of financial aid, prioritizing low-income families and vulnerable populations.


• Stronger institutional frameworks to enhance efficiency and accountability in social protection programs.

This law aims to close gaps in social safety nets, particularly for informal workers, self-employed individuals, and marginalized communities.

3. Shift from financial aid to economic empowerment

One of the most significant policy shifts is the transition from direct cash assistance to self-sufficiency programs. Instead of long-term dependence on government support, beneficiaries will receive training, financial aid, and access to business resources to start income-generating projects.

• Microfinance and business grants for families on financial aid.


• Support for women entrepreneurs, increasing their participation in the labor market.


• Skills training and education programs to improve employability.

This marks a fundamental change in Egypt’s social protection philosophy, moving toward economic empowerment rather than perpetual welfare dependency.

4. Conditional support: linking aid to human development

The government is adopting a conditional support model, where financial assistance is tied to education, healthcare, and skill development. Families receiving aid must meet specific conditions to remain eligible, such as:

• Ensuring children stay in school to combat illiteracy.


• Regular health check-ups for children and pregnant women.


• Participation in vocational training to increase employability.

This policy ensures that social aid leads to long-term economic mobility, reducing intergenerational poverty.

5. Strengthening social justice and equal opportunities

To reduce income inequality, Egypt is implementing a targeted social assistance system using a poverty assessment formula to identify the most deserving beneficiaries.

• Technology-driven eligibility assessments to prevent fraud and ensure fairness.


• Expansion of disability support programs, providing better healthcare and job opportunities.


• Stronger women’s empowerment policies, including equal access to financial resources.

These initiatives ensure that government support reaches those who need it most, promoting inclusive economic growth.

6. Upcoming salary and pension increases

To mitigate inflation’s impact on households, Egypt plans a new wage and pension increase, set to take effect in July 2025.

• Public sector salary adjustments to match inflation.


• Higher pension payouts to improve elderly financial security.


• Stronger minimum wage enforcement in the private sector to ensure fair pay.

This aligns with the broader economic reform plan, where wage growth is synchronized with cost-of-living adjustments.

7. Social protection meets economic policy

Egypt’s social protection efforts are closely linked to economic reforms, ensuring that financial aid and employment policies go hand in hand. Some major economic measures include:

• Customs reform to lower import costs and stabilize consumer prices.


• Encouraging foreign investment to create more job opportunities.


• Energy sector expansion, reinforcing Egypt’s position as a regional power hub.

By integrating social policy with economic development, Egypt aims to reduce reliance on direct aid while fostering a more self-sufficient workforce.

Conclusion: a more sustainable social safety net?

Egypt’s new social protection strategy represents a shift from short-term financial assistance to long-term empowerment. The record-high budget, new laws, and economic integration signal a move toward a more sustainable, inclusive, and just welfare system.

If effectively implemented, these reforms could reduce poverty, increase economic mobility, and build a more resilient social structure, ensuring that every Egyptian has access to a dignified and secure life.