Egypt has increased the monthly stipends for its flagship Takaful and Karama social protection programs, with payments rising to 900 Egyptian pounds ($18.89) per month, effective this July. This marks a notable jump from the previous 736 pounds for Takaful beneficiaries and 708 pounds for Karama recipients, Minister of Social Solidarity Maya Morsy told reporters on Sunday.
Introduced in 2015 with support from the World Bank, Takaful and Karama are Egypt's primary conditional and unconditional cash transfer programs. They were established to mitigate the impact of ambitious economic reforms launched in 2014, including subsidy cuts, aiming to protect the most vulnerable segments of the population and build human capital. Takaful provides financial aid to poor families with children, contingent on school attendance and health check-ups, while Karama offers direct cash support to the elderly, people with disabilities, and orphans, without such conditions.
The latest increase, announced in April 2025, represents a 25% rise in cash support. Beneficiaries are expected to receive the adjusted 900-pound payments starting mid-July.
Morsy also revealed plans to establish a “bank for the poor,” modeled after Bangladesh's Grameen Bank. This initiative aims to extend agricultural, artisanal, and group loans, replicating a global success story that serves millions through a vast branch network.
Morsy had previously indicated in May that millions of families had exited the Takaful and Karama programs due to improved economic circumstances. She stated that 3 million of the 7.7 million families who benefited over the past decade no longer required assistance, citing indicators like acquiring land, tractors, small businesses, or commercial registrations
The program's framework was recently updated with Law No. 12 of 2025 on Social Security, signed by President Abdel Fattah El-Sisi on April 6. This legislation, known as the “Takaful and Karama Pension Law,” sets stricter eligibility criteria. The conditional cash support, “Takaful,” is now limited to five specific family categories, including those headed by a female guardian, families of detainees or conscripts, families where the breadwinner has been absent for at least six months with police verification, and other designated poor families.
The unconditional cash support, “Karama,” now targets eight specific groups. These include individuals with disabilities, those suffering from severe chronic illnesses, elderly individuals (whether living alone, with family, or in care institutions), non-breadwinning women, orphans, individuals over 18 previously in social care homes, eligible veteran artists, athletes, and writers, and unmarried females.
These social protection measures come as Egypt navigates complex economic headwinds with annual urban consumer price inflation jumping to a greater-than-expected 16.8% in May from 13.9% in April, which remains a significant challenge for households.
The government has also implemented broader measures to alleviate financial pressure, including raising the private sector minimum wage to 7,000 pounds per month as of March 1, 2025. It has also allocated 170 billion pounds to increase wages and pensions for state employees and pensioners starting July 2025. These adjustments reflect ongoing efforts to support living standards amidst persistent inflationary pressures and economic reforms.
