On the May 25, 2017, the Ministry of Social Solidarity issued decree No. 310 of 2017 (“The
Decree”) amending a number of provisions of the Minister of Finance Decree No. 554 of 2007 regarding the Implementation Rules of the Social Insurance Law No. 79 of 1975.
The Decree has mainly amended the amount of the Social Insurance Salary "SIS”. The SIS is the salary upon which the monthly social insurance contributions are calculated. It consists of basic and variable components.
Periodical laws and decrees usually issued to update the minimum and maximum value of the basic and variable components of the SIS.
The Decree set new minimum and maximum value for the basic SIS as well as a new maximum for the variable SIS as following:
- Minimum basic SIS as of 1 July 2017 is set at EGP 198 per month (subject to 10% annual increase).
- Maximum basic SIS as of 1 July 2017 is set at EGP 1,364 per month (subject to 10% annual increase).
- Maximum variable SIS as of 1 January 2017 is set at EGP 29,118 per year, i.e. approximately EGP 2,430 monthly ((subject to 15% annual increase).
In all cases, the aggregate monthly SIS (including both the basic and variable components) shall not be less than EGP 500 as of 1 July 2017 (subject to 25% annual increase for each of the following 4 years, and 10% for the years thereafter).
The Decree further stipulated that as of 1 July 2016 pension shall not be less than EGP 500 per month.