Egypt, as the third-largest populace in the world and Africa’s second-largest city, is hub for remote investment. Egyptian labor and company laws combine cutting edge practices with Islamic Sharia law. Further, changes focus on improving transparency, productivity, and cultivating investor certainty. Initiatives like “Egypt Vision 2030” and the “New Investment Law” reflect the country’s commitment to many initiatives.

Furthermore, Egypt's new Labor Law No. 14 of 2025, effective from September 1st, 2025, will replace the old Law No. 12 of 2003. Thus, teams with HR software must prioritize legal compliance as the new framework introduces significant changes in maternity leave, wage structures, working hours, and employee benefits.

Egypt Labor Law Regulations

The essential legislation governing labor relations in Egypt includes Labor Law No. 12 of 2003, as amended, which establishes the framework for interactions between employers and employees in the private sector.

Additionally, Egypt’s labor law covers key employment conditions, including working hours, rest periods, overtime compensation, and other aspects of the workplace. Social Security Law No. 79 of 1975 and the Civil Law Code also address employee protections and benefits. Businesses can use payroll software to help manage salary processing and maintain accurate payroll records in line with applicable requirements.

Developments in Egypt Labor Law

The Egypt Labor Law includes significant provisions regarding present trends in employment, prioritizing the safety and protection of employees' rights. These provisions include the following:

1. Employment Contracts in Egypt Labor Law

The Egypt Labor Law establishes the employment contract as the backbone of its framework, legally documenting the terms that define the working relationship between an employer and an employee. In addition, the law requires all contracts to be in writing and include all necessary requirements. Therefore, employers and employees can now negotiate more flexible arrangements.

Probation in Egypt

Probation in Egypt limits to the 3 months.

• Permanent Contracts

Permanent contract is the most common type that offers the greatest employee security. Generally, it alludes to a long-term and renewable contract where there’s no specific end date.

• Fixed-Term Contracts

Further, these are contracts that exist for specific jobs, projects, or time ranges. Moreover, Fixed-term contracts gets at the end of the contract, but when they last for more than two years, counts permanent.

• Part-Time Contracts

Businesses such as retailers, hospitality, and education are accepting the growing need for part-time work. Moreover, part-time workers receive proportional benefits on an hour-for-hour basis.

Thus, an employee cannot do more than one job at a time unless the contract states otherwise, according to the Egypt labor law.

2. Leave Policies under Egypt Labor Law

• Annual Leave

Additionally, employees who have completed a full year of service with the same employer are entitled to 21 days of paid Annual Leave. After completing five years of service, this entitlement increases to 30 days. Employees may also carry forward unused Annual Leave for up to two years, subject to the applicable rules and employer policies.

• Sick Leave

Employees who drop sick and cannot work gets 1800 days of paid wiped out leave per year as per Egypt labor law. In any case, the pay structure is as follows:

  • First 15 days: Full pay
  • Next 30 days: Half pay
  • Following 45 days: Unpaid

• Casual leave

According to Article 51 of the Labor Law, employees can only take up to six days of leave for non-essential reasons each year. Each day of leave must be no more than two working days.

• Maternity Leave

Female employees get 90 days full‑pay + 1 hr/day reduction after 6th month of pregnancy maternity leave. Moreover, no one can dismiss the women or take any adverse action against them during their maternity leave.

• Public Holidays

  • The public holidays in Egypt have certain law that combines with work conditions.
  • Since Islamic occasions are according to on the lunar calendar, their dates alter each year.
  • Employees who work on national holidays can get their standard daily salary.

• Additional Types of Leave

  • Hajj Leave (Pilgrimage Leave): Employees makes to a one-time fully paid leave to perform the Hajj pilgrimage during their employment.
  • Leave for Special Circumstances: Also, employees may receive short-term paid leave for specific life events, such as marriage, exams, or the death of immediate family members. So, the exact terms may vary based on employment contracts or company policies.
  • Unpaid Leave: Although not legally mandated, employers may offer unpaid leave for extended personal reasons, provided employer approves it.

3. Working Hours and Rest Periods in Egypt Labor Law

• Standard Working Hours

The law establishes that employees are to work no more than 48 hours a week, typically divided into six working days of 8 hours each. In any case, certain industries or sectors may negotiate reduced working hours in line with business prerequisites.

• Overtime

Those employees who work more than the standard48 hours gets to over time minutes ‘pay. Employers generally compensate overtime at a rate of 1.5 times the employee’s hourly wage. Thus, for work doneat the end of the week or public holidays, employees must get compensation at twice their normal hourly rate as per egypt labor law.

• Rest periods

Employees gets at least 30 minutes of break in every 6 consecutive hours of work. Also, employees might also get satisfactory rest days whereby they get a paid day off each week.

• Night Work

Those who work at midnight, usually from 10 PM to 6 AM, get a few additional recompenses. Thus, night work overtime as a rule pulls in 1.5 times the basic rate per hour.

4. Wages and Compensation

• Salary Payments

Salary must be paid directly to the employee in Egyptian pounds, as required under Egypt Labour Law, or in another currency if agreed upon in the employment contract. Payments should be made regularly, typically on a monthly basis, through a direct bank transfer or another mutually agreed method. Employees can also use a Salary Calculator to better understand their expected earnings and deductions.

• Minimum Wage

The Egyptian government has presented 7,000 EGP minimum wage. Further, these suggestions are frequently reviewed to guarantee that employees makes in line with the inflation rate and cost of living.

5. Health and Safety Regulations

The Egypt Labor Law  gives for workers’ protection from potential workplace risks. Moreover, the bosses gets appoint by the law to make a secure working environment and take all reasonable steps to avoid accidents and injuries.

• Workplace Safety

Here, managers ensure that all equipment, machinery, and tools meet security standards. Additionally, they should implement additional safety measures, such as providing individual protective equipment and regular safety training, according to the Egyptian Labour Law for high-risk industries, such as construction or fabrication.

• Medical Care

In any dangerous trade, the employers shall offer employees health services. Additionally, workers’ compensation insurance must be made to their workers, thus protecting any employees’ medical charges arising from workplace injury.

• Emergency Protocols

There must be emergency protocols established by the employers. Also, the protocols must be regarding fire safety and evacuation procedures. Furthermore, the employees should educate themselves about these emergency procedures.

6. Dispute Resolution in Egypt Labor Law

Disputes between employers and employees are inescapable, and the Egypt Labor Law gives a system for settling such conflicts. Further, the law emphasizes the importance of intervention and arbitration to guarantee fair treatment for all parties included.

  • Complaints relating to unpaid wages, wrongful termination, or work-related badgering should get register with the Ministry of Manpower and Immigration (MOMI). The MOMI might examine the complaint and try to solve the case by way of mediation.
  • Mediation and Arbitration: The MOMI will mediate between the employee and boss in case of a conflict, aiming to amicably settle the circumstance. Though, if mediation fails to resolve the issue, the case moves forward for assertion or to the labor court.
  • Labor Courts: Labor courts will analyze cases that cannot be resolved through mediation. Additionally, they will hear both parties and issue a binding judgment. Employees can appeal to labor courts for justice if they feel unfairly dismissed or have unresolved issues with compensation.

7. Termination and Severance Benefits

Employers and employees are protected by provisions that ensure termination of work. Thus, managers must follow proper procedures outlined by Egyptian labor law when rejecting a worker to ensure a fair and legal process.

• Notice Period

Employers must give employees appropriate notice when terminating their employment. The Notice Period in Egypt depends on the applicable employment terms and legal requirements, with the specific period varying based on the employee’s contract and length of service.

Moreover, reduced pay may include compensation based on the employee’s employment period and applicable legal provisions. Understanding the Notice Period in Egypt helps employers and employees handle termination procedures more clearly and in line with labor requirements.

•  Severance Pay

The company will provide severance pay to employees who are subject to summary dismissal or retirement after working for more than one year, based on their length of service. Employees will receive one-twelfth of one month’s compensation per year of service.

• Unfair dismissal

Where a representative feels they are unfairly dismissed, they can report the issue to the Ministry of Manpower. Lastly, if the specialist feels that the dismissal was unjustified, they has the right to compensation, counting reinstatement or top-up severance pay.

Work Permits and VISA

In Egypt, foreign nationals must get the appropriate work permits and visas to lawfully work in the nation. These permits and visas are given by Egypt labor laws. Also it  includes Labor Law No. 12 of 2003and the Foreigners Employment Law (Law No. 72 of 2017). Here’s an outline of the types of work licenses and visas:

  • Work Permit: Foreigners employed in Egypt must get a work permit from the Ministry of Manpower and Immigration. However, the boss provides documentation proving the position cannot be filled by a nearby Egyptian specialist. Also, a work permit is typically issued for a period of up to 10 years and is renewable, but only a limited number of grants are given each year, depending on the sector and the company's needs.
  • Employment Visa: A foreign worker requires a work visa to work in Egypt. This visa is ordinarily substantial for up to one year and must get renews. Also, the method involves submitting a visa application through the Egyptian office or embassy within the worker’s home country. In addition, to apply, the manager must give a contract and proof of a work permit approval.
  • Temporary Work Permit: Foreign nationals coming to Egypt for a short-term assignment or project must obtain a permit. Typically, employers must provide the scope of work and essential documentation to obtain this permit, which typically allows for a few months to complete a particular task or project.
  • Freelancer Permit: Foreign nationals offering services in Egypt must apply for a freelancer permit. This permit allows them to work on a contract basis with multiple clients. Thus, proof of business registration and contracts with clients is required to obtain the permit.
  • Investor Permit: Foreign investors who wish to operate their businesses in Egypt must apply for an investor permit, which allows them to work in their claim company. Therefore, this permit requires proof of the investment and company registration, along with other documentation.
  • Specialized Worker Permit: The Ministry of Manpower grants permits to foreign nationals with specialized skills to work in specific areas or industries. Thus, employers must demonstrate that the position requires skills unavailable locally and provide the necessary documentation.
  • Part-time Work Permit: Foreign workers on part-time contracts must apply for this permit, which allows them to work fewer hours than full-time employees. Accordingly, the manager must provide details about the working hours and job duties.
  • Student Work Permit: Egyptian students on student visas can apply for a student work permit to work part-time in Egypt, as allowed by labor law. Furthermore, this permit limits the number of hours students can work and the types of jobs they can take.
  • Mission Visa: Foreign nationals on temporary assignments or short-term missions in Egypt must obtain a mission visa. Thus, this visa is for ventures and has a limited term based on the assignment.
  • Compliance and Documentation: Employers must comply with labor market controls. Moreover, it must illustrate that there are no qualified Egyptian candidates available for the position before contracting a foreign national. Also, all remote representatives are required to supply valid employment contracts, proof of qualifications, and sometimes experience a restorative examination. Lastly, the Ministry of Manpower is dependable for issuing work permits and ensuring compliance with local Egypt labor laws.

Setting up a legal entity in Egypt has traditionally been challenging, with the nation ranked 114th overall in terms of ease of doing business. However, later reforms in Egypt labour law have made the process more accessible.

The GAFI directs company registration, which is now available online. Changes have eliminated or reduced capital requirements, especially for small businesses, and the introduction of “One-Stop Shops” has streamlined the process. Moreover, the government is actively working to attract foreign investment by offering benefits such as facilitating the repatriation of profits. Businesses can also use performance management software to manage employee goals and performance as they establish and grow their operations.

Different types of visas, including business, work, and residency, have different eligibility criteria, while some businesses may have investment restrictions.

Further, common company structures in Egypt include One-Person Companies, Joint-Stock Companies, and Limited Liability Companies.

Employer Compliance Checklist: Egypt Labor Law

Additionally, ensure your organization is aligned with the latest labor regulations in Egypt. Use this checklist to stay compliant:

  1. Employment Contracts
  • All employees signed written contracts.
  • The contracts clearly outline job roles, compensation, working hours, and benefits.
  • Probation periods do not exceed 3 months.

2. Working Hours & Rest

  • Employees work no more than 48 hours per week.
  • They are given a paid weekly rest day, typically on Friday.
  • Breaks of at least 30 minutes are provided after six consecutive hours of work.

3. Leave Entitlements

  • Employees receive at least 21 days of paid annual leave (30 days after 5 years).
  • Maternity leave is granted for 90 days with full/half pay as applicable.
  • Sick leave policy is implemented in line with statutory pay brackets.
  • Casual and special leave provisions are clearly communicated.

4. Wages & Compensation

  • Employees receive monthly salaries through traceable methods, such as bank transfers.
  • Overtime pay is calculated and disbursed at a rate of (1.5x or 2x).
  • Pay structures adhere to Egypt's sector-specific minimum wage guidelines.

5. Health, Safety & Insurance

  • Workplaces are equipped with safety gear and protocols.
  • Emergency procedures and first-aid kits are in place.
  • Workers’ compensation insurance is active for occupational injuries.

6. Termination & Exit

  • Termination processes follow due notice (30–90 days based on contract).
  • Severance and redundancy pay are calculated accurately.
  • Employees have access to grievance and dispute redressal mechanisms.

7. Foreign Workers & Permits

  • All foreign employees have valid work permits and visas.
  • Documentation is filed with the Ministry of Manpower as required.
  • You’ve verified that no qualified Egyptian national was available before hiring a foreign national

Conclusion

Understanding the Egypt Labour Law 2026 is important for businesses operating or planning to expand in Egypt. The law provides a framework covering employment contracts, working hours, wages, employee rights, health and safety, and dispute resolution. HR software can help businesses manage these areas more efficiently while maintaining organized employee records.

For businesses, staying updated with Egypt Labour Law 2026 can make compliance easier and reduce the risk of employment-related issues. With the right HR software, organizations can streamline employee records, contracts, payroll processes, and other HR tasks while supporting compliance with applicable labour requirements.