Egyptians staged one of their biggest protests yet on Tuesday demanding President Hosni Mubarak step down now, their wrath undiminished by the vice president’s announcement of a plan to transfer power.

Egypt’s embattled regime on Monday announced a 15 per cent raise for government employees in an attempt to shore up its base and defuse popular anger amid ongoing protests demanding President Hosni Mubarak’s ouster.

Egyptian President Hosni Mubarak tried to buy time in the face of defiant street protests, pledging to raise public sector wages by 15 per cent and ordering a probe into recent deadly violence.

Egypt’s vice-president Omar Suleiman met a broad representation of major Opposition groups for the first time on Sunday and offered new concessions, including freedom of the press, release of those detained since anti-government protests began nearly two weeks ago and the eventual lifting of the country’s hated emergency laws. Two of the groups that attended the meeting said this was only a first step in a dialogue which has yet to meet their central demand — the immediate ouster of longtime President Hosni Mubarak.

The top leadership body of Egypt’s ruling party resigned Saturday, including President Hosni Mubarak’s son, but the regime appeared to be digging in its heels, calculating that it can ride out street

Egypt’s opposition Muslim Brotherhood on Sunday said it had started a dialogue with authorities "to see up to what point they are ready to accept the demands of the people," a statement said.

Teachers at the Cairo Japanese school began evacuating from Egypt due to the political unrest in the country, closing the school for an undetermined period.

Hundreds of thousands of Egyptians marched peacefully in Cairo on Friday to demand an immediate end to President Hosni Mubarak’s 30-year rule, but there was no word of his generals, or his US allies,

Protesters and regime supporters skirmished in a second day of rock-throwing battles at a central Cairo square while new lawlessness spread around the city.

Embattled Egyptian President Hosni Mubarak is likely to step down immediately and turn over power to a transitional government headed by Vice President Omar Suleiman, backed by the army.