Egypt Establishes Takaful Fund to Secure Unpaid Alimony and Family Support
The Egyptian cabinet has approved a draft law to establish the Takaful Fund to Support the Egyptian Family, a state-backed entity designed to ensure that vulnerable families receive court-ordered financial support. The fund’s primary mission is to execute unpaid alimony and child support judgments—including school fees—and provide a critical financial safety net for families who lack a primary breadwinner.
Prime Minister Mostafa Madbouly confirmed that this legislative move follows directives from President Abdel Fattah Al-Sisi to accelerate the finalization of family-related legislation. This initiative is part of a broader effort to update the Family Law and the Family Law for Egyptian Christians for parliamentary review.
Transitioning to a New Support System
The Takaful Fund is a non-profit entity with a public legal personality that will replace the existing Family Insurance System Fund. Upon the new law’s enactment, the Takaful Fund will assume all rights and obligations of the previous system.
To clear the path for this new entity, the draft law repeals several existing regulations, including:
- Law No. 11 of 2004, which established the previous insurance system.
- Articles 71 to 75 of Law No. 1 of 2000, which governed personal status litigation procedures.
- Any other conflicting legal provisions.
To ensure a seamless transition, alimony, wages, and other court-ordered payments will continue to be disbursed from the current Family Insurance System Fund for six months after the new law takes effect. The Takaful Fund will begin its own disbursements immediately following this grace period.
Governance and Oversight
Headquartered in Cairo and operating under the authority of the Minister of Social Solidarity, the fund has the flexibility to establish additional branches across various governorates to increase accessibility.
The entity will be managed by a nine-member board of directors. Members will serve four-year terms, renewable once. The board is formed by the Minister of Social Solidarity and includes:
- A representative from the Ministry of Social Solidarity, who serves as Vice Chairperson (and acting Chairperson in the Chair’s absence).
- Representatives nominated by the ministers of Justice, Interior, Planning and Economic Development, and Finance.
- Three experts selected by the Minister of Social Solidarity.
The board also retains the authority to invite non-voting external experts to provide specialized guidance on its duties.
Operational Mandate and Financial Safeguards
The board is tasked with creating the fund’s organizational structure, including human resources and financial regulations, which must be approved by the Ministry of Finance and the Central Agency for Organisation and Administration.
Key responsibilities of the board include:
- Setting strict controls for collecting fund dues and verifying that efforts to execute judgments were made.
- Establishing protocols for disbursing funds to families and recovering those payments from the convicted individuals.
- Determining exceptional cases that may warrant increased disbursements.
- Managing the entity’s resources and approving annual budgets and final accounts.
To protect the integrity of the system, the draft law designates the fund’s resources as public funds, exempting them from taxes and fees. The law establishes strict penalties for individuals who wrongfully obtain funds or those who refuse to provide required data or delay submissions without a valid excuse.
- Purpose: Guarantees payment of unpaid alimony, child support, and school fees.
- Breadwinner Support: Provides aid to families without a stable income or primary breadwinner.
- Legal Shift: Replaces the Family Insurance System Fund and repeals Law No. 11 of 2004.
- Timeline: The Minister of Social Solidarity must issue executive decisions to implement the law within two months of its effective date.
Frequently Asked Questions
How will the Takaful Fund differ from the previous system?
The Takaful Fund replaces the Family Insurance System Fund, assuming its obligations while updating the legal framework by repealing outdated laws from 2000 and 2004 to streamline the execution of court judgments.
Who is eligible for support from the fund?
The fund is designed to support families when convicted parties refuse to pay court-ordered expenses, or in other cases determined by the board. It also assists families without breadwinners who lack a stable income to meet basic human needs.
What happens to current payments during the transition?
Current payments will continue to be handled by the existing Family Insurance System Fund for six months after the new law takes effect to prevent any disruption in financial support for families.
As Egypt moves toward a more robust framework for family law, the Takaful Fund represents a strategic shift toward ensuring that judicial rulings on family support are not just issued, but effectively executed.