Pay sweetener for Egypt’s state workers

The move was seen as an attempt to shore up its base and defuse popular anger amid ongoing protests demanding President Hosni Mubarak’s removal.

The pay decision followed earlier promises to investigate election fraud and official corruption as well as an announcement that one of the most prominent youth organisers would be released.

The gestures so far have done little to persuade the tens of thousands occupying Cairo’s Tahrir Square to end their two-week long protest, leaving the two sides in an uneasy stalemate.

Newly-appointed finance minister Samir Radwan said the salary and pension increases would take effect in April for the six million people on public payrolls.

Observers believe the regime is confident it can maintain its grip on power, at least until September elections, but it has made a number of moves in response to protesters’ demands.

Egypt’s vice president Omar Suleiman has met several major opposition groups, including the outlawed Muslim Brotherhood, for the first time and offered concessions including freedom of the Press, release of those detained during the protests and the eventual lifting of the country’s hated emergency laws.

Egypt’s state-run news agency reported that Mr Mubarak ordered parliament and its highest appeal court to re-examine lower-court rulings disqualifying hundreds of ruling party MPs for campaign and ballot irregularities, that were ignored by electoral officials – possibly paving the way for new elections.

In Cairo yesterday banks were open for limited hours along with many shops.

Traffic was returning to ordinary levels and the start of the night-time curfew was relaxed to 8pm.