CAIRO – Egypts embattled regime announced Monday a 15 percent increase in salaries and pensions in the latest attempt to defuse popular anger amid protests demanding President Hosni Mubaraks ouster. The cabinet decision follows earlier promises to investigate election fraud and official corruption, which have done little to persuade the tens of thousands occupying downtowns Tahrir Square to end their two-week long protest.
State TV also announced that the family of a detained Google Inc. marketing manager who helped organize the anti-Mubarak demonstrations, "has been notified that he will be released this evening." Wael Ghonim was one of the most prominent youth organizers of the protests and was seized by security agents on Jan. 28.
Newly appointed Finance Minister Samir Radwan says some 6.5 billion Egyptian pounds ($960 million) will be allocated to cover the increases, which will take effect in April for the 6 million people on public pay rolls. In the past, public sector employees have been a pillar of support for the regime, but in recent years as prices have soared, their salaries have stagnated in value forcing the government to periodically announce raises to quell dissatisfaction. Following widespread labor unrest in public sector factories in 2008, Mubarak announced a 30 percent increase in prices that appeared to temporarily blunt public anger.