Social Security Reform in Egypt under Sisi

Abstract

Although Egypt’s social security system became obsolete in the 1990s, it was the Sisi administration that launched the major reform. The social security system was restructured along with the implementation of the bold macro-economic reform. As a result, the new social security plan can cover a much bigger population than what the old system could, despite a chronic fiscal deficit. The purpose of this paper is to examine the state of the social security reform in Egypt since 2014 and discuss its sustainability. The paper reviews the developments of the new cash transfer programs as well as the rebuilding of the social insurance system. While the new social security scheme is well-designed and is highly reputed, administrative capabilities will be a major challenge.