Disbursement of 50% of the contractors compensation amount for the year 2025

Egypt’s Minister of Housing, Utilities, and Urban Communities, Eng. Sherif El Sherbini, has approved the payment of 50% of the compensation owed to contracting companies, based on the latest approved compensation ratios. This payment will apply to the next three contractual billing months, pending the final approval of new compensation ratios. This policy will remain in effect until June 2025.

Such decision aims to accelerate the progress of real estate projects and alleviate the financial burdens on contracting companies. It follows a memorandum submitted by the Egyptian Federation of Construction and Building Contractors (EFCBC) to the Minister of Housing, requesting compensation payments in accordance with Law No. 173 of 2022, which amends certain provisions of Law No. 84 of 2017. The request also aligns with the principles and guidelines issued by the Supreme Compensation Committee, and cabinet approved compensation rates.

Therefore, for the next three contractual billing months, companies will receive 50% of the last approved compensation percentage. Any overpayments will be settled with the Authority, with an added investment return calculated based on the interest rate announced by the Central Bank of Egypt.

To review the decree, please visit this link: The Ministry of Housing Decree