Egyptian parliament ratifies unemployment allowances draft law


The Labor Committee of the House of Representatives has ratified Egypt’s new social insurance and pensions draft law, submitted by the government. The new draft law includes the issuance of unemployment allowances, in accordance with certain procedures and rules. These benefits, according to the law, will be provided to the unemployed under certain conditions, including that the unemployed should be below 60 years old. Unemployment allowances are being determined based on specific percentages of the last contributions fee; 75% for the first four weeks, 65% for the second four weeks, and 55% for the fourth four weeks and 45% for the rest of the weeks. The law stipulates that the beneficiary shall be a participant in social insurance system for at least one year, and shall benefit from it for a minimum of 12 weeks and a maximum of 28 weeks depending on the period of his insurance contribution. 2% of the general wage of the worker shall be placed in a personal account as a return on investment considered like an end of service bonus.

Unemployment benefits are generally given only to those registering as unemployed, and often on conditions ensuring that they seek work and do not currently have a job, and are validated as being laid off and not fired.

It also says the right to receive a dole shall be waived if the unemployed person refuses to accept a job that the Labor Office sees appropriate especially if the new work equals at least 75% of the unemployed’s dole. The allowance shall be waived if the unemployed is proved to have become self-employed or if he leaves the country.


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