Press reports have confirmed according to a number of experts in the field of insurance in Egypt that there are a number of problems related to the new Social Insurance and Pensions Law, which requires amendment, most notably regarding early pension, as well as the crisis of pension replacement in the new law.
Reports highlighted that the new legislation also ignored to establish a transitional period between the application of the existing law and the previous law.
Whoever reaches the pension at the end of December 2019, for example, is entitled to the pension according to the old law.
However, his/her counterpart who is in the same position, with the same the length of service and the same rate of participation, if an early pension is reached at the beginning of January 2020, the pension is withheld according to the new law, which is something that needs rapid treatment intervention, as experts confirmed.
On the other hand, Hamdi Jaber Al-Adawi, a social insurance expert, emphasized that the new insurance law also has some privileges, including the creation of one fund for social insurance and pension systems managed by one authority, as well as the disengagement of the Ministry of Finance and Insurance and the Investment Bank, in addition to reducing the rates of contributions. In return, the improvement and increase of pensions.
Al-Adawi pointed out that the new legislation also introduced additional pension, in addition to maintaining the existing benefits, especially the benefits of those who are entitled to a pension.
Al-Adawi noted that the new Insurance and Pensions Law calculates contributions on the total monthly comprehensive wage, and not on the basic wage as it is the case in the previous laws, which means an increase in the proceeds of contributions.
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