Egyptian Parliament Approves Deducting Salaries for COVID-19 Response
The Egyptian parliament reached an initial approval on a draft law that will see a one percent deduction of all public and private employee salaries to help confront the economic repercussions of the novel coronavirus outbreak and counter natural disasters.
The first article of the draft law requires all the country's public and private sector employers to deduct one percent of their employees' net monthly incomes for one year.
Pensions will also have a 0.5 percent deduction over the same period, beginning in July.
The bill excludes employees and pensioners whose monthly salaries do not exceed EGP2,000.
The money will be deposited into an account at the Central Bank of Egypt (CBE). It will be allocated to support economic sectors and small and medium enterprises (SMEs) affected by the global pandemic, and pay financial subsidies to workers in these sectors.
The contributions will be allocated for spending, particularly for supporting economic and productive sectors, as determined by the cabinet. It will also be assigned to families and individuals as determined by the president.
The bill also indicated that part of the donations will be set for research funding, and the development of the health care system.
In April, head of the parliamentary Legislative and Constitutional Affairs Committee, Bahaa Abu Shaqqa, announced his intention to present a draft law that deducts 20 percent of citizens’ income to support the government’s effort to curb the spread of the coronavirus.
He later retracted the proposal, and the parliament said it did not formally receive it.
Meanwhile, Egypt is seeking to boost the plasma derivatives industry with the national project to achieve self-sufficiency of plasma.
Minister of Health and Population Hala Zayed and Finance Minister Mohamed Maait on Saturday co-chaired a meeting of the Arab Company for Drug Industries and Medical Appliances (ACDIMA).
Zayed launched the national project to collect and manufacture plasma derivatives in Egypt, with the participation of a Korean company and the National Investment Bank.
The plasma will be collected through 12 centers affiliated to the Ministry of Health and Population, and will work in parallel to establish a national plasma manufacturing factory.