(Photo courtesy of Egypt’s Cabinet)
Prime Minister Ibrahim Mehleb’s decision to amend the maximum income law has been published in the official gazette, state-run MENA reported on Monday.
The prime minister’s decision states that citizens will not receive net transportation allowances or allowances for representing the state higher than EGP 15,000 annually.
Economic expert and chairman of the Arabian House of Consultancy for Financial and Economic Investment Magdy Tolba said that a maximum income law was introduced by the cabinet of former Prime Minister Hazem El-Beblawi, adding that the decision to limit allowances “closes a dangerous door”.
Tolba said that previously, a ceiling had not been in place, and individuals could earn up to EGP 600,000 a year in allowances. Examples of when allowances are paid include a judge required to settle a conflict on behalf of the state or public employees attending meetings in which they represent the state.
El-Beblawi’s cabinet began discussing minimum and maximum incomes last September.
