Employment laws in Egypt
Employment laws in Egypt balance business needs and employee rights in Egypt. Employers and employees must know about contracts, wages, and termination.
The Egyptian workforce operates within a legal framework, evolving over decades of labor unrest, economic reforms, and shifting political priorities. At the core of the employment laws in Egypt is the Labor Law No. 14 of 2025. This law replaces Law No. 12 of 2003.
Labor Law No. 14 of 2025 introduces modern labor standards, strengthens employee protections and employee rights in Egypt, and formalizes hybrid/remote work. Navigating the labor laws in Egypt is essential for employers and employees alike. This helps ensure labor law compliance in Egypt.
Payoneer Workforce Management, a trusted EOR service, helps employers navigate the employment laws in Egypt seamlessly. The EOR service assists with key employment aspects like employee onboarding, payroll management, taxation, leave entitlements, compliance, and more.
Key employment laws in Egypt
The Labor Law No. 14 of 2025, which replaced Law No. 12 of 2003, is the principal and primary employment law in Egypt. The law not only introduces modern labor standards, but it also strengthens employee rights in Egypt. The law covers all important aspects, such as employment contracts, wages, working hours, termination, and more.
Apart from this, there are other labor laws in Egypt, which have equal significance. Here are some of the other prominent employment laws in Egypt.
- Social Insurance Law No. 148 of 2019: This law unifies and reforms the national social insurance system in Egypt, providing a comprehensive framework for disability, pension, unemployment insurance, work injury, and more.
- Ministerial Decree No. 211 of 2003: This decree outlines the occupational health and safety standards for employees in Egypt.
- Egyptian Constitution of 2014: The Egyptian Constitution of 2014 carries 247 articles. Articles 12-14 establish the right to work, fair wages, and worker protection as fundamental rights.
Contract employment laws in Egypt
Employment contracts in Egypt are governed by the Labor Law No. 14 of 2025, which has replaced Law No. 12 of 2003.
The employment contract must be in writing. Moreover, the contract should include all the necessary terms and conditions, which ensure labor law compliance in Egypt.
Types of contract
According to the Labor Law No. 14 of 2025, employment contracts in Egypt are of two types. This is similar to employment contract types in Nigeria.
- Indefinite contract– An indefinite employment contract in Egypt does not have a specific duration. This is typically for full-time and permanent roles.
- Fixed/ definite contract– Fixed period employment contracts are for a specific duration. There is a start and an end date of the employment contract. If there is a requirement, the contract is renewed with the mutual agreement of both parties. However, a fixed-term contract gets renewed when both parties continue the contract after expiration, without any written agreement.
Essential contract terms
Employment contracts in Egypt should be in writing in Arabic and English.
Typically, the contract copies should be shared with the employee, the social insurance office, and the relevant administrative authority.
Here are the details that the contract must contain:
- Name of the employer and address of the workplace
- Name of the employee, profession or trade, qualifications, residence address, insurance number, and other identification details
- Start date of the employment contract
- Job roles and responsibilities
- Agreed-upon wage/salary
- Additional benefits, allowances, etc.
- Probation period
- Notice period and termination
- Leave entitlements
Minimum wage in Egypt
The minimum wage in Egypt is 7, 000 Egyptian Pound (gross per month).
Working hours in Egypt
The normal working hours in Egypt are up to 48 hours per week. If an employee works above the normal working hours, it is considered overtime.
According to overtime laws in Egypt, employees cannot work more than a maximum of 2 hours of overtime per day. Employers have to adhere to a maximum of 10 hours of total working hours per day of overtime for each employee.
The compensation for the overtime hours in Egypt is more than the original compensation of the employee. Here are the details of overtime payment in the country:
- Overtime on a day working – Normal hourly wages + 35% of normal hourly wages
- Overtime on night working – Normal hourly wages + 70% of normal hourly wages
- Overtime on holidays – Double salary for that day
- Working on weekends – If an employee works on a day of rest at the request of the employer, the employee is entitled to an equivalent wage for that day. The employer will have to grant an alternate leave to the employee during the following week.
Mandatory benefits
Employee rights in Egypt are quite strong. As a part of these rights, employees enjoy certain benefits. Some of the prominent ones are as follows:
| Mandatory benefits | Details |
|---|---|
| Public health insurance | Public health insurance is mandatory in Egypt for all citizens. The premium for this health insurance is paid by the employer, employee, and their family members. The premium amount for the insurance varies, depending on the individual’s or family’s income. |
| Social security | Social security contributions are mandatory for both employees and employers in Egypt. The benefits of the social security system are for eligible individuals, including healthcare, pensions, disability benefits, and other social assistance programs. |
| Sick leave | Employees in Egypt are entitled to 180 days of sick leave. Social security is responsible for paying for sick leave. For the first 90 days, employees will get 75% of their salary, and for the remaining 90 days, 85% of their salary. |
| Maternity leave | In Egypt, a female employee is entitled to 4 months of maternity leave. This is inclusive of the pre- and the post-delivery period. The post-delivery leave should not be less than 45 days. |
| Paternity leave | Male employees in Egypt are entitled to only 1 day of fully-paid paternity leave. This leave can be taken up to 3 times during the employment period. |
| Childcare leave | Childcare leave can be taken for up to 2 years. This is unpaid leave. The leave applies to female employees working in companies with more than 50 employees. Childcare leave can be taken twice during the service tenure with an employer. |
| Annual leave | Annual leave for employees in Egypt depends on the service tenure. One year of employment – 15 days of annual leave per year From the second year of employment, 21 days per year More than 10 years of service with the same employer – 30 days of annual leave Employees older than 60 years – 30 days of annual leave |
| Public holidays | There are 12 days of public holidays in Egypt. Coptic Christmas Day Revolution Day Eid El-Fitr Sham El-Nassim Sinai Liberation Day Eid El-Adha Labour Day Revolution Day Revolution Day Islamic New Year Prophet Muhammad’s Birthday Armed Forces Day |
| End-of-service benefit | Once employees reach the age of 60 years, they are entitled to a service bonus in Egypt. For the first 5 years of service – ½ month’s wage per year For the subsequent years, 1 month’s wage per year The bonus also applies to the number of years of service of the employee before 18 years of age. The employment can be in the form of a trainee or a worker. The bonus calculation is based on the last received wage of the employee. |
| Annual bonus | The annual bonus or the 13th-month payment is not a legal requirement in Egypt. However, in many organizations, it is customary to give employees an annual bonus. |
| Holiday bonus | A holiday bonus is not legally mandated in Egypt. The majority of public and private sector employers provide holiday bonuses, such as seasonal cash bonuses or Eid gifts for employee goodwill. |
Termination
There are termination laws in Egypt, and employers and employees have to follow them to end employment. Employers have to cite valid grounds, based on which they can terminate employees.
When termination is without valid grounds, it is considered unfair dismissal. The employer might face severe legal consequences in such situations.
Types of termination scenarios
In Egypt, employee termination is possible in the following scenarios:
- Employment termination by the employer due to absence without leave, performance issues, misconduct, etc.
- Voluntary resignation of the employee
- Termination of the employee during the probation period
- Mutual agreement of termination between the employer and the employee
Notice period in Egypt
The notice period in Egypt depends on the kind of employment contract. During the probation period in Egypt, a notice period is not mandated by law.
- For a definite-term contract: In case the employer decides to terminate an employee in a definite-term contract, the employee must get a minimum of 1 month’s notice period in advance.
- For an indefinite contract: For an indefinite contract, the notice period depends on the tenure of employment. If the employer does not inform the employee well in advance, there will be compensation for the notice period.
- Less than 10 years of employment – 2 months notice period
- More than 10 years of employment – 3 months notice period
Severance payable
Employees are entitled to severance pay in Egypt. The pay depends on the employment contract term.
- When the termination is of an indefinite employment contract, the employer has to pay severance pay for 2 months for each year the employee served the organization.
- When the employer terminates the employment of an employee under a definite employment contract, the employer has to compensate for the remaining duration of the contract.
Navigate employment laws in Egypt with trusted support
Knowledge of the employment laws in Egypt is mandatory for both employees and employers in the country. This is all the more important for labor law compliance in Egypt.
Payoneer Workforce Management, a trusted EOR platform, can help employers navigate the complex employment and labor laws in Egypt. The EOR extends assistance with key employment aspects like payroll management, leave entitlements and tracking, taxation, employee onboarding and termination, and more.
Frequently asked questions (FAQs)
Payoneer Workforce Management assists employers in navigating the employment laws in Egypt. Once employers understand these laws well, they succeed in engaging employees as per labor law compliance in Egypt. Our EOR service extends support for quick expansion.
Disputes are first referred to the relevant administrative authority for mediation. If unresolved, cases proceed to the Labor Courts. Collective disputes may involve arbitration panels, while individual disputes follow a structured judicial process under the Labor Law No. 14 of 2025.
Yes. The labor law requires employment contracts to be in writing, in Arabic and English. It must clearly state the job role, salary, working hours, and other agreed terms to be legally enforceable.
The standard working hours in Egypt are up to 48 hours per week. If an employee works above the normal working hours, it is considered overtime.
The annual bonus or the 13th-month payment is not a legal requirement in Egypt.
However, many organizations give such a bonus to the employees.
Foreign employers hiring in Egypt must follow local labor laws for contracts, working hours, leave, payroll, and termination. Employment contracts should usually be written in Arabic and English, and employers must register employees for social insurance. Companies without a local entity often use an Employer of Record (EOR) to engage talent legally with compliance support.
Employers in Egypt must pay salaries on the last day of the month, deduct 0-25% of income tax from employee wages, and make social insurance contributions for both the employer and employee. Payroll records should also be maintained in line with local labor and tax regulations.
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