Result achieved
Outcome summary
The Social Insurance and Pensions Law has been adopted
Outcome achieved
In July 2019 a new law, the Social Insurance and Pensions Law No. 148 of 2019, was adopted by the Egyptian Parliament reforming the national pension system contributing to enhance the governance and the financial sustainability. The law is compliant with the Egyptian constitution and is considered comprehensive to harmonise the rules of the different schemes, and is compliant with international conventions in the field of social protection. The new law is based on a parametric reform with a progressive increase in retirement age, a shift from end-of- career to a career-average pension formula, an increase in minimum eligibility conditions.
Published in the Official Gazette on 19 August 2019 as Law No. 148 of 2019.
ILO's contribution to the outcome
The ILO has provided technical advice on social protection to the Government of Egypt (e.g. legal, actuarial, capacity building) during the preparatory period of the pension reform. A series of actuarial studies for different scenarios of reforms of the pension system were prepared with the Ministry of Social Solidarity and the Ministry of Finance, intending to guarantee the long-term sustainability of the current defined benefit system via parametric reform. The reform takes into account the results of the scenarios developed in the actuarial studies by the ILO and the final scenario taken into account for the reform has also been assessed by the ILO.