Changes to Early Retirement Conditions in 2025: What You Need to Know

Early retirement conditions will begin to change starting in 2025, as per the new law. The insurance provisions are transitional provisions that are implemented within 5 years of the adoption of the law in 2020, which means that implementation begins in January 2025.

Early Retirement for Those Born in the 1980s

According to Magdy El-Badawi, Vice President of the Egyptian Trade Union, from January 2025, the period of insurance subscription is scheduled to change to 25 years. This change will affect the early retirement age for those born in the 1980s.

Those who started working at 21 after graduation will have an early retirement age of 46, while those who were insured to work from the age of 18 will have a retirement age of 43 instead of 38.

Early Retirement Conditions for Those Born in the 1980s

To be eligible for early retirement, individuals must meet the following conditions:

• Availability of subscription period for old age, disability, and death insurance, which entitles to a pension not less than 50% of the last settled wages or income and not less than the minimum pension.
• The pension insurance subscription period should include 240 actual months, equivalent to 20 years, which changes to 25 years at the rate of 300 months at the beginning of 2025.
• He must not have old age, disability and death insurance on the date of submission of distribution request.
• The insured must have a subscription period of not less than three consecutive months or six interrupted months.
• Individual must be less than 55 years of age, with an insurance period of 20 years before the end of the current year and 25 years at the beginning of next January.
• The insurance rights are settled based on the insurance subscription period, plus the remaining period (5 years) to complete the service.
• There was no disciplinary penalty or attention to which he was associated with the institution.

Settlement Fee Calculation

The settlement wage for early pensioners is calculated according to a calculation process, which is “If the settlement wage by age x insurance factor x is greater than 50%, it is like withdrawing from the initial pension, but if it is less than 50% of the settlement wages, then he is not entitled to withdraw from the pension.