Social insurance is implemented by the government to insure citizens against old age, illness, and death know more info from faydety

What is Social Insurance? details of his regime in Egypt | Faydety

Social insurance is an obligatory system enforced by governments for the protection of the working class. The system is applied by the employer whereby they deduct a percentage of the employee’s salary each month and pay it to the social insurance fund.&nbsp;The advantage of social insurance is that it insures citizens and their family members against old age, work related accidents, illness, or death.&nbsp;<h2>A brief history on the social insurance system:</h2>&nbsp;The first social insurance system was implemented in Germany in 1884 after which several European countries followed. By the 1920s most European countries had some type of social insurance system in place and by 1935 the Unites States implemented its own system.&nbsp;&nbsp;A pension system was implemented in Egypt in 1854. As time went by the system was improved upon but it was still limited to those who worked in the public sector. In 1975 the first inclusive social insurance system was implemented for both public and private sector employees.&nbsp;&nbsp;“The advantage of social insurance is that it insures citizens and their family members against old age, work related accidents, illness, or death.&nbsp;<h3>More details on the social insurance system in Egypt:</h3>&nbsp;Social insurance system laws were recently changed in August 2019 with an implementation date of January 2020 as follows:&nbsp;<ul style="list-style-type:disc;"><li>All social insurance laws including laws concerning citizens working abroad have been codified under one law.</li><li>All types of social insurance have been unified under one cash fund.</li><li>Retirement age changed to 60 years for employees and 65 years for business owners and seasonal workers.</li><li>Categories such as seasonal workers, sole proprietorships, and business owners were included under the law.</li><li>Fines have been increased to 10,000-20,000 EGP while jail time has been abolished with some exceptions.</li><li>The percentages deducted from employees’ salaries were changed according to each employee category as follows:</li></ul><ul><li>The percentage deducted from employees’ salary is 18.25% for both the public and private sectors with an incremental increase every 7 years with an upper limit of 26% with some exceptions.</li><li>For employees who pay their own social insurance the percentage is now 11% of their monthly salary.</li><li>Business owners and shareholders will pay 25% of their monthly income.</li><li>For those employed abroad: 21% of their income.</li><li>For seasonal workers: 13% of their salary.</li></ul>

What is Social Insurance? details of his regime in Egypt

Insurance is a contract, in the form of a policy, in which an individual or entity receives financial protection and/or compensation against losses from an insurance company. Insuring something means diverting the burden of payment for its loss from a personal responsibility to one that the insurance company bears on your behalf, in a certain percentage, depending on the type of insurance you have.&nbsp;&nbsp;The insurance company relies on calculating the probability of a loss or damage to an insured asset. If there is a high probability, then the insurance cost tends to be expensive; on the other hand, if the probability is low, the insurance cost tends to be relatively cheaper.&nbsp;Let's start with the basics.&nbsp;<h2>Insurance Policy:</h2>&nbsp;As stated briefly above, an insurance policy is a contract between you and an insurance company. This policy outlines your agreement's details and determines the claims that the insurer is legally required to pay in exchange for a premium. It essentially states that the insurer must pay for any loss or damage caused by risks covered under the policy.&nbsp;<h2>Insurance Premium:</h2>&nbsp;An insurance premium is a certain amount of money that you need to pay periodically in exchange for the maintenance of your chosen insurance policy. If you are unable to pay the premium, the insurance policy will be forfeited. If this happens and you decide you would like to keep your coverage, you may be required to pay a fine or charge a higher premium accordingly.&nbsp;<blockquote>The insurance company relies on calculating the probability of a loss or damage to an insured asset</blockquote>&nbsp;<h2>Types of Insurance:</h2>&nbsp;There are many different types of insurance. Though it is possible to divide them into two basic categories, under which the other types of insurance fall, the two categories are:&nbsp;<h2>Life Insurance / Health Insurance</h2>&nbsp;Life insurance is a contract between you and an insurance company where, in exchange for premium payments paid by you during your lifetime, the company will pay a sum of money to your beneficiaries after your death.&nbsp;&nbsp;Health insurance covers medical expenses that may arise due to illness. These expenses could entail costs of hospitalization, cost of medicines, or medical consultation fees.&nbsp;These insurance types are primarily based on individuals, although some countries go one step further and provide pet insurance. This is because, at times, the cost of medicines and veterinarian visits are higher than the costs of individuals.&nbsp;<h2>Property Insurance / Disaster Insurance</h2>&nbsp;This type of insurance reimburses an individual or business and protects a physical property against loss from theft, fire, natural disasters, etc. Property insurance covers the building or structure itself as well as its contents, whether personal or corporate, including furnishings, inventory, and other items.&nbsp;Get your <a href="https://www.faydetyinsurance.com/en">Insurance Policy</a> Now through Faydety!

What do you know about the Insurance system in Egypt? and what's its Policies, Premium, and kinds? All you need to know about insurance

What is Social Insurance? details of his regime in Egypt

Why is social insurance beneficial?

A brief history on the social insurance system:

More details on the social insurance system in Egypt:

Editors' Choice