Egypt

Key Facts at a Glance

Legal Framework

Egyptian employment law is based primarily on the Labour Law No. 12 of 2003, which governs the relationship between employers and employees in the private sector. Public-sector employees are governed by the Civil Service Law No. 81 of 2016. The framework is supplemented by extensive ministerial decrees, the Trade Union Law, the Social Insurance Law, the Personal Data Protection Law, and the Egyptian Constitution (2014, as amended in 2019).

Principal Statutes

New Labour Law

Pending Reform: A new draft Labour Law has been under discussion in the Egyptian Parliament for several years, intended to replace Law 12 of 2003. As of 2026, the precise commencement of the replacement statute remains a moving target, with debate continuing on probation periods, fixed-term contracts, end-of-service benefits, and women's rights. Employers should monitor announcements from the Ministry of Labour (now the Ministry of Manpower) and verify the statute in force at the time of any HR action.

Regulatory Bodies

• Ministry of Labour / Ministry of Manpower: Primary regulator and inspectorate; responsible for labour office filings, work permits, and compliance enforcement.
• National Council for Wages: Establishes the national minimum wage and reviews it periodically.
• National Authority for Social Insurance: Administers the social insurance scheme under Law 148/2019.
• Personal Data Protection Center: Established under Law 151/2020; responsible for data protection regulation and enforcement.
• Labour Courts: Specialised chambers within the Court of First Instance hear individual labour disputes; collective disputes go to specialised arbitration panels.

Ministry of Manpower

Employment Contracts

Articles 32–39 of the Labour Law govern the formation of employment contracts. Egyptian law recognises both definite-term (fixed-term) and indefinite-term contracts, with specific requirements for form, content, and language.

Form Requirements (Article 32)

• Employment contracts must be concluded in writing in Arabic, in three counterparts: one for the employer, one for the employee, and one filed with the relevant social insurance office.
• Where a foreign language is used (e.g., for foreign employees), an Arabic version must accompany the foreign-language version, and the Arabic text prevails in case of discrepancy.
• The contract must specify: the parties (names, identities, addresses), the nature and place of work, the wage and method of payment, and the duration (where definite term).

Definite vs. Indefinite Term Contracts

Indefinite-Term (Open-Ended)

Default form. No specified end date. May only be terminated by either party for valid statutory reasons (resignation, dismissal for cause, redundancy following Ministry approval, mutual agreement, retirement). Strongest job protection.

Definite-Term (Fixed-Term)

Specifies an end date. Permitted for any purpose, including general employment. Renewal: If the contract is expressly renewed for one or more terms, those renewals are treated as a single continuous contract. If the parties continue to perform after expiry without express renewal, the contract converts to indefinite term.

Probation Period (Article 33)

• Maximum duration: 3 months.
• Must be expressly stated in writing in the employment contract.
• Only one probation period is permitted per employee with the same employer for the same role.
• Either party may terminate the contract during probation without notice or compensation, provided no abuse of right occurs.

Foreign Workers (Articles 27–31)

• Foreign nationals working in Egypt must hold a work permit issued by the Ministry of Manpower.
• Egypt applies a 10% rule: in any given workplace, foreign workers may not exceed 10% of the total workforce, subject to exceptions for specific roles where suitable Egyptian workers are not available.
• Work permits are typically issued for 1 year and renewable. Specific occupations are reserved for Egyptian nationals.
• Foreign workers are subject to specific income tax and social insurance arrangements; foreign workers are generally outside the Egyptian social insurance system unless their home country has a totalisation agreement.

Working Hours and Overtime

Working hours are governed by Articles 80–88 of the Labour Law. The standard working time framework prioritises a 48-hour week, with restrictions on continuous work and minimum rest periods.

Core Rules

• Maximum daily working time: 8 hours.
• Maximum weekly working time: 48 hours (typically 6 days × 8 hours).
• Continuous work limit: No more than 5 consecutive hours without a break of at least 1 hour, which must include a meal interval. Daily total of breaks not less than 1 hour.
• Daily rest period: At least 11 consecutive hours between shifts.
• Weekly rest: At least one full day (typically Friday) of paid rest per week.
• Ramadan: Working hours for Muslim employees during Ramadan are typically reduced (commonly to 6 hours per day) by ministerial decree or workplace practice.

Overtime (Article 85)

• Overtime is permitted on the basis of operational necessity and only if the employee consents.
• Premium rates:
• 35% above the basic hourly wage for daytime overtime
• 70% above for night overtime
• 100% above (double pay) for work on weekly rest days
• 200% above (triple pay) for work on official holidays
• Maximum overtime: Total daily working time including overtime may not exceed 10 hours.

Restrictions on Women and Minors

• Women may not be employed in night work between 7 p.m. and 7 a.m., subject to exceptions defined by ministerial decree (e.g., hospitals, hotels, certain industries).
• Women may not be employed in occupations identified by ministerial decree as harmful to health or morals.
• Children under the age of 15 may not be employed; employment of those aged 15–17 is restricted as to hours, type of work, and night work.

Annual Leave and Public Holidays

Annual leave is governed by Articles 47–52 of the Labour Law. The basic entitlement scales with length of service and age.

Annual Leave Entitlement

Public and weekly rest days falling within annual leave are not counted towards the leave entitlement.

Other Statutory Leaves

• Sick leave: Up to 180 days per year of paid sick leave (75% of insurance wage for the first 90 days, 85% thereafter), payable through the social insurance system. Verification by an authorised medical authority is required.
• Hajj or Umrah leave: Once during the employee's service, an employee with at least 5 years of continuous service is entitled to 1 month of paid leave for performing the Hajj pilgrimage or visiting Jerusalem (Umrah).
• Casual leave: Generally treated as part of annual leave; up to 6 days per year may be taken at short notice in 2-day blocks at most, deducted from annual leave.
• Examination leave: Employees pursuing studies are entitled to paid leave on the days of examinations, subject to conditions.

Public Holidays

Egypt has approximately 14–16 official public holidays per year, combining national days, Christian (Coptic) holidays, and Islamic holidays based on the Hijri calendar (which shifts each year). Common holidays include:

• National holidays: Coptic Christmas (7 January), Sinai Liberation Day (25 April), Labour Day (1 May), 23 July Revolution, 6 October Armed Forces Day
• Islamic holidays: Eid al-Fitr (3 days), Arafat Day, Eid al-Adha (3-4 days), Islamic New Year, Prophet's Birthday (Mawlid)
• Coptic holidays: Easter Sunday and Sham El-Nessim (Easter Monday)

Work on public holidays is permitted only by exception and must be paid at triple pay (200% premium above normal wage).

Maternity and Family Protection

Articles 91–96 of the Labour Law and the Social Insurance Law together provide protections for working mothers.

Maternity Leave (Article 91)

• Duration: 90 days (3 months) of paid maternity leave, including the period before and after delivery, with not less than 45 days after delivery.
• Eligibility: The employee must have completed at least 10 months of insurance contributions.
• Maximum frequency: Maternity leave may not be taken more than 3 times during the employee's entire period of service with one or more employers.
• Pay: Maternity leave is paid through the social insurance system at the insurance wage rate (typically based on the employee's contribution base).

Nursing Time (Article 93)

• Mothers returning from maternity leave are entitled to two daily nursing periods of 30 minutes each (or one consolidated period of 1 hour) for 24 months after the date of delivery.
• Nursing periods are counted as working time and may not be deducted from the wage.

Childcare Leave (Article 94)

• In establishments with 50 or more employees, a female employee is entitled to unpaid childcare leave of up to 2 years for the care of her child, taken not more than twice during her entire period of service.

Workplace Childcare Facilities (Article 96)

• Employers with 100 or more women employees in one location are required to establish a nursery or childcare facility, or to contract with a nearby nursery, in accordance with ministerial decree.

Protection Against Dismissal

• It is prohibited to dismiss a female employee during maternity leave.
• Pregnancy, childbirth, and maternity leave may not be relied on as grounds for dismissal.
• Where a dismissal occurs in violation of these protections, the employee is entitled to reinstatement or compensation.

Note: The draft new Labour Law contemplates extending maternity leave to 4 months, in line with broader regional reform trends. Employers should monitor the final form of the new law upon enactment.

Termination of Employment

Termination of employment is one of the most regulated aspects of Egyptian labour law. The Labour Law restricts the grounds and procedures for dismissal of indefinite-term employees, and provides robust remedies for employees who are unfairly dismissed.

Termination of Indefinite-Term Contracts (Article 110)

An indefinite-term contract may be terminated:

• By the employee at any time, with proper notice, with no requirement to give reasons
• By the employer only on the grounds of serious fault by the employee or economic necessity approved by the relevant authority
• By mutual agreement
• On the death of the employee, retirement, or total incapacity

Notice Periods (Article 111)

Notice may be paid in lieu. Notice given by the employee may be shorter under contract or by custom; longer notice for senior management is common.

Grounds for Dismissal Without Notice (Article 69)

The employer may terminate an employee without notice or compensation if the employee commits a "serious fault" (gross misconduct) including:

• Assuming a false identity or submitting forged documents
• Causing serious financial loss to the employer through deliberate or grossly negligent conduct
• Failing to observe written instructions necessary for safety where this could result in serious risk
• Being absent from work without legitimate cause for more than 20 non-consecutive days, or 10 consecutive days, in one year
• Unauthorised disclosure of trade secrets
• Competing with the employer in the same business activity
• Being intoxicated or under the influence of drugs at the workplace
• Assaulting the employer, supervisors, or colleagues during or because of work
• Failing to perform essential contractual obligations

Court Approval for Dismissal of Indefinite Employees

Important: An employer who wishes to dismiss an indefinite-term employee for serious fault under Article 69 must first refer the matter to the relevant Labour Court (or its Tripartite Committee in some interpretations) to confirm the existence of serious fault. The court's involvement is intended to prevent arbitrary dismissal. Termination without following this procedure exposes the employer to claims for unfair dismissal compensation.

Termination of Definite-Term Contracts

• Definite-term contracts terminate automatically on the agreed end date.
• Early termination by the employer without serious fault by the employee entitles the employee to compensation equal to the wages for the remaining period of the contract.
• Renewal of a definite-term contract is permitted but may, depending on the structure, convert it to an indefinite-term contract.

Compensation for Unfair Dismissal

• Where an employer terminates an indefinite-term employee without serious fault and outside the proper procedure, the employee is entitled to compensation of not less than 2 months' total wages for each year of service.
• The compensation is in addition to any other entitlements such as accrued leave, unpaid wages, and end-of-service benefits.

End-of-Service Benefits and Wages

Egypt does not operate a single statutory end-of-service gratuity equivalent to the Gulf State systems, because long-service benefits are largely provided through the social insurance pension system rather than a lump-sum employer obligation. However, employees are entitled to several specific benefits on termination.

Final Settlements on Termination

• Outstanding wages: All accrued but unpaid wages, allowances, bonuses, and commissions.
• Accrued annual leave: Cash compensation for any accrued but unused annual leave, calculated at the basic wage rate.
• Notice pay or pay in lieu: Where notice is not worked, the equivalent payment.
• End-of-service compensation (where applicable): For unfair termination, statutory compensation under Article 122 (not less than 2 months' total wages per year of service).
• Accumulated social insurance entitlements: Pension or lump-sum benefits payable through the National Authority for Social Insurance under Law 148/2019, depending on the employee's age and length of contribution.

National Minimum Wage

• Egypt's national minimum wage is set by decree of the National Council for Wages and is reviewed periodically.
• The minimum wage applies to private-sector employees and is denominated in Egyptian pounds (EGP). It has been raised multiple times in recent years in response to inflation.
• The current minimum wage should be verified against the most recent ministerial decree, as the figure has changed several times since 2020.

Practical Note: Wage compliance audits by the Ministry of Manpower have intensified in recent years. Employers should ensure that the minimum wage applies to the full statutory definition of "wage," not just basic salary. Calculation disputes are a common source of labour court claims.

Social Insurance (Law 148 of 2019)

The Social Insurance and Pensions Law No. 148 of 2019 replaced the long-standing Law 79 of 1975, modernising Egypt's social insurance system. It came into effect on 1 January 2020 and consolidates the previously separate schemes for civil servants, private-sector employees, and the self-employed.

Branches of Coverage

• Old age, disability, and death pensions
• Work injury insurance (occupational injuries and diseases)
• Sickness insurance
• Unemployment insurance
• Health care (administered separately under the Universal Health Insurance Law No. 2 of 2018, being phased in by governorate)

Contribution Rates (Approximate)

Rates and contribution bases (caps and floors) are revised periodically by ministerial decree. Verify the current rates applicable each year. Some employers also opt into supplementary private insurance schemes.

Compliance

• Employers must register all employees with the National Authority for Social Insurance from the start of employment.
• Monthly contributions are due by the 15th of the following month.
• Failure to register or under-declaring wages exposes the employer to back contributions, late fees, and administrative penalties.

Trade Unions (Law 213 of 2017)

The Trade Union Organisations Law No. 213 of 2017 (as amended by Law 142 of 2019) replaced the earlier Law 35 of 1976 and significantly liberalised the regulation of trade unions in Egypt. The 2017 reform allowed for greater pluralism and reduced the historical monopoly of the Egyptian Trade Union Federation (ETUF), although the practical landscape continues to be dominated by the official federation.

Trade Union Structure

• Workplace trade union committees may be established with at least 50 founding members at an enterprise.
• General trade unions (sectoral) require at least 15 workplace committees with a combined membership of 20,000 or more.
• Trade union federations require at least 10 general trade unions with combined membership of 200,000 or more.

Major Federations

Collective Bargaining

• The Labour Law (Articles 148–162) provides for collective bargaining at workplace, sectoral, and national levels.
• Collective agreements must be in writing, registered with the Ministry of Manpower, and may not contain provisions less favourable to workers than statutory minimums.
• Collective bargaining is far less developed in practice than in many other jurisdictions; most employment terms are governed by individual contracts and statute.

Strikes

• The right to strike is recognised but heavily regulated.
• Strikes are permitted only in defence of professional, economic, or social interests, and must follow specific procedural requirements (notification of the employer, the relevant union federation, and the labour authority at least 10 days in advance).
• Strikes are prohibited in essential services and government-strategic facilities.

Personal Data Protection (Law 151 of 2020)

Egypt enacted its first comprehensive data protection law - the Personal Data Protection Law No. 151 of 2020 - on 13 July 2020, with the law coming into force on 15 October 2020. The law establishes a comprehensive regime modelled (in significant respects) on the EU GDPR and creates a regulator, the Personal Data Protection Center.

Scope

• Applies to the processing of personal data of any natural person residing in Egypt or whose data is processed in Egypt.
• Has extra-territorial reach to entities processing the data of Egyptian residents from outside Egypt.
• Employee data is fully covered: HR processing requires a lawful basis under the Law.

Lawful Bases for Processing

• Consent of the data subject (must be free, specific, informed, and unambiguous)
• Necessary for the performance of a contract with the data subject (or to take steps prior to entering into a contract)
• Compliance with legal obligation
• Protection of vital interests of the data subject or another person
• Performance of a task carried out in the public interest
• Legitimate interests of the controller (subject to a balancing test)

Sensitive Personal Data

Sensitive personal data - including data on health, biometrics, genetic data, religious beliefs, political opinions, criminal records, and security/intelligence information - is subject to enhanced protections and generally requires explicit consent or a specific statutory basis.

Cross-Border Transfers

• Cross-border transfers of personal data are permitted only to countries that provide an adequate level of protection (as determined by the Personal Data Protection Center) or under specific safeguards, with prior approval from the Center for sensitive data.
• Standard Contractual Clauses, Binding Corporate Rules, and explicit consent are recognised mechanisms for transfers.

Data Protection Officer

• Controllers and processors of certain categories must appoint a Data Protection Officer.
• Mandatory categories include those processing sensitive data, large-scale processing, or systematic monitoring of data subjects.

Penalties: The Law provides for both administrative fines and criminal sanctions. Fines range from EGP 100,000 to EGP 5 million for breaches, with higher penalties for sensitive data violations and criminal liability (including imprisonment) for the most serious offences. The Executive Regulations have been progressively issued; employers should monitor their finalisation and the Center's enforcement activity.

Anti-Discrimination and Equal Treatment

Egypt does not have a single comprehensive anti-discrimination statute equivalent to those of EU jurisdictions. Anti-discrimination protections are dispersed across the Constitution, the Labour Law, and specific statutes addressing women, disability, and minorities.

Constitutional Foundations

• Article 9 (Constitution): The State guarantees equal opportunity for all citizens, without discrimination.
• Article 11: The State commits to achieving equality between women and men in all civil, political, economic, social, and cultural rights.
• Article 53: Citizens are equal before the law, equal in rights and freedoms, with no discrimination based on religion, belief, sex, origin, race, colour, language, disability, social class, political affiliation, or geographic affiliation.
• Article 81: The State commits to ensuring the rights of persons with disabilities, including in employment, and guaranteeing full equality of opportunity.

Labour Law Provisions

• Article 35: Prohibits employer discrimination in wages on the basis of sex, origin, language, religion, or belief.
• Article 88: Prohibits the dismissal of women on grounds of marriage, pregnancy, or maternity leave.
• Articles 91–96: Provide specific protections for pregnant women, new mothers, and nursing mothers.

Disability Quota (Law 10 of 2018)

• The Law on the Rights of Persons with Disabilities No. 10 of 2018 requires employers with 20 or more employees to allocate at least 5% of their jobs to persons with disabilities.
• Employers who fail to meet the quota may face administrative penalties.
• The State provides incentives to employers who exceed the quota or adapt the workplace for accessibility.

Sexual Harassment

• The Penal Code (Article 306 bis) criminalises sexual harassment, with prison sentences and fines.
• Employers have a general duty under the Labour Law to provide a safe workplace, which extends to protection from harassment.
• The 2014 amendment to the Penal Code strengthened sexual harassment provisions, with further penalties for harassment committed in the workplace or by a person with authority over the victim.

Employee Thresholds - Quick Reference

Egyptian labour law thresholds for employer obligations are generally low, with most obligations applying from the first employee. Establishment-level thresholds (50+, 100+) primarily relate to trade union, leave, and childcare obligations.

Practical Timelines

Planning Advice: Egyptian dismissal law for indefinite-term employees is among the more restrictive in the region. Multinationals should plan workforce changes well in advance, with realistic timelines for any required Labour Court approvals or negotiated settlements. Mutual termination agreements with enhanced ex-gratia compensation are commonly used to avoid the procedural rigour of court-approved dismissal.

Key Challenges and Risk Areas

Pending Labour Law Reform: The much-discussed new Labour Law has been on the legislative agenda for several years. Its enactment will likely change probation, fixed-term contract rules, end-of-service benefits, and women's leave entitlements. Employers should monitor parliamentary progress and prepare to update employment contracts and HR policies on commencement.

Restrictive Termination Procedures: Dismissal of indefinite-term employees requires either serious fault (with court approval) or significant statutory compensation. Many multinational employers prefer mutual termination agreements with enhanced ex gratia payments to avoid the procedural complexity and uncertainty of contested dismissal.

Currency and Inflation Risk: Egypt has experienced significant currency devaluation and inflation in recent years. Employers should review wage scales and minimum wage compliance regularly, and monitor changes to the social insurance contribution base which is periodically revised.

Foreign Worker Quotas: The 10% rule on foreign workers and the requirement for work permits restrict the use of expatriate labour. Strategic workforce planning for multinationals should account for the requirement to develop local talent and the limited scope for expatriate roles.

Data Protection Implementation: The Personal Data Protection Law has been in force since October 2020, but Executive Regulations and the practical operations of the Personal Data Protection Center are still being progressively rolled out. Employers should establish data protection compliance frameworks (consent flows, notices, DPO appointments where required) in anticipation of more active enforcement.

Social Insurance Compliance: The 2019 reform unified social insurance and increased the cost base. Common compliance issues include under-declaring wages, late contributions, and failure to enrol part-time or fixed-term workers. Inspections and penalties have been increasing.

Resources and Links

Government and Regulatory Bodies

• Ministry of Manpower
• Egyptian Cabinet Information and Decision Support Center
• National Authority for Social Insurance
• State Information Service
• IDSC - Information and Decision Support Center

Legislation

• Manshurat - Egyptian Legal Database

Trade Unions

• Egyptian Trade Union Federation (ETUF)

Business and Chambers

• Federation of Egyptian Chambers of Commerce
• American Chamber of Commerce in Egypt
• Federation of Egyptian Industries

See also

• Africa
• South Africa
• Nigeria
• Kenya