The Egyptian House of Representatives approved an amendment to the Social Insurance and Pensions Law last week amid debate and opposition criticism. The revised legislation, originally drafted by the government, seeks to strengthen the social protection system by ensuring the sustainability of pensions and improving financial contributions from the state.

The amendment modifies Article 111 of the 2019 law by increasing the Treasury’s annual contribution to the National Authority for Social Insurance (NASI) from LE227.08 billion to LE238.55 billion for the 2025–2026 fiscal year—an increase of approximately LE11 billion. It also sets a schedule to raise these contributions incrementally from a current rate of 6.4 percent to 7 percent by July 2029. Additionally, the amendment establishes an allocation of LE1 billion annually for five years to support the system.

Gamal Awad, head of NASI, described the changes as essential to prevent a projected deficit in the pensions system by 2036. He highlighted that the amendment seeks to balance pensioners' rights with the financial sustainability of the system, preserving its capacity to fulfill obligations without overburdening the state budget. Awad pointed out that NASI manages an investment fund valued at LE723 billion, which produced returns of LE124 billion in 2025.

Mohamed Suleiman, chair of the House’s Budget Committee, emphasized that the bill aims to link pensions with inflation rates to maintain pensioners’ purchasing power while providing NASI greater financial tools to manage future challenges. He stated the focus was on enhancing the Treasury’s contributions in terms of value, percentage, and duration.

Despite official support, the bill faced opposition from several MPs who argued that the amendments fall short of addressing pensioners’ needs amid rising inflation and economic difficulties. Mahmoud Sami Al-Imam, spokesman for the Egyptian Socialist Democratic Party, criticized the bill for only modestly increasing Treasury contributions and for not introducing more comprehensive reforms.

Mohamed Abdel-Alim Dawoud, spokesman for the Wafd Party, described the changes as insufficient, saying they fail to protect the rights of some 12 million pensioners. Dawoud pointed to rising living costs, such as healthcare expenses, which often exceed average pension amounts. He also accused NASI of ineffective management of pension funds.

Independent MPs Diaaeddin Dawoud and Ahmed Al-Sangidi joined the dissenting voices. Diaaeddin Dawoud leveled corruption accusations against NASI’s head, though Speaker Hisham Badawi requested evidence to substantiate the claims. Al-Sangidi lamented that the increase in pension contributions does not keep pace with inflation or currency depreciation. He highlighted the need to expand social insurance coverage to vulnerable groups, including irregular workers, referencing President Abdel-Fattah Al-Sisi’s recent exceptional financial grants to this demographic as a temporary measure.

The bill’s passage marks a key step in Egypt’s ongoing efforts to reform its social insurance system, though the debate signals continued tensions over how best to support pensioners given the country’s economic challenges.