On September 16, 2026, Egypt's Financial Supervisory Authority issued Decision No. 2891 of 2026, approving amendments to the basic regulations of the private insurance fund for employees of Al Baraka Egypt Bank. The fund is registered with the Authority under No. 643. This decision is based on the provisions of Law No. 155 of 2024 issuing the Unified Insurance Law and Law No. 10 of 2009 regulating supervision of non-banking financial markets and instruments.
The decision comes in response to approvals from the fund's extraordinary general assembly held on March 15, 2026, and recommendations from the committee examining and studying requests for licenses to establish private insurance funds and amend their basic systems. The committee met on August 13, 2026, followed by a report from the Authority's Private Insurance Fund Supervision and Oversight Sector on September 8, 2026.
The decision amends articles 1/6 of Chapter One, concerning general provisions, and article 7/a of Chapter Three, related to membership and fund contributions. The term "subscription wage" has been redefined as the monthly basic wage according to the wage regulations in force for employees of the entity on December 31, 2025, or the date of appointment if later, with a maximum of 150,000 pounds.
In addition to this wage, periodic increments and promotions are included, with a maximum of 4.5% compounded annually starting from January 1, 2027, provided that an actuarial study is prepared and approved by the Authority before any additional amounts are considered. The amendments also specify that the monthly contribution to the fund is 12% of the approved subscription wage, distributed between the member and the entity.
The member bears 4% of the contribution, while the entity bears 8%. Article Two of the decision stipulates that these approved amendments will be applied as of January 1, 2026, in accordance with the decision of the fund's general assembly. Article Three requires the decision to be published on the Authority's electronic website and the fund's electronic website.
The decision also instructs relevant parties to implement it. The amendments aim to ensure the sustainability and efficiency of the insurance fund for Al Baraka Egypt Bank employees. By redefining subscription wages and adjusting contribution rates, the fund seeks to provide better benefits to its members while maintaining financial stability.
The Financial Supervisory Authority's approval of these amendments reflects its ongoing efforts to regulate and oversee private insurance funds in Egypt. This move is expected to enhance the overall insurance framework in the country, providing greater protection and security for employees in the banking sector and beyond.
Key points
- The Egyptian Financial Supervisory Authority approved amendments to the Al Baraka Egypt Bank employees' insurance fund regulations on September 16, 2026.
- The amendments redefine subscription wages and adjust contribution rates to ensure the fund's sustainability.
- The changes will take effect as of January 1, 2026, as per the fund's general assembly decision.
