Labor Law Compliance Guide for Egypt

This labor law guide for Egypt has important information for businesses looking to hire employees or contractors in the country. Egypt is a country in Africa. Egypt's economy has been gaining momentum, with nominal GDP reaching approximately $349 billion in 2025 and GDP growth hitting 5.3% in Q1 FY2025/2026 -- the strongest pace since FY2021/2022. Key growth drivers include Suez Canal revenues, tourism, non-oil industry, and non-oil exports reaching $48.5 billion in 2025. Egypt is also a major BPO and call center hub in the MENA region, with a large multilingual workforce serving European and Middle Eastern markets.

Category	Details
Minimum Wage	EGP 7,000/month (effective March 2025)
Overtime Wage (Day)	135% of regular wages
Overtime Wage (Night)	170% of regular wages
Meal Breaks	One meal break (minimum 30 minutes)
Rest Breaks	One rest break (minimum 30 minutes)
Working hours	8 hours/day, 48 hours/week
Salary Payment Cycle	Monthly
Payroll Taxes	Social insurance: employer 18.75%, employee 11%
Paid Vacation	21 days
Overtime Hours	Max 2 hours/day
Holiday Work Pay	3x daily wage
Holidays	13 days
No Work Days	Friday

The Egyptian currency is Egyptian Pound (EGP).

Hiring Laws in Egypt

When hiring workers in Egypt, businesses must follow several essential steps and comply with prevailing labor laws. Businesses must register locally and obtain the necessary permits to hire employees. Setting up a business entity involves costs ranging from EGP 10,000 to EGP 15,000 and can take about 30 to 45 days.

Employers in Egypt must sign a written contract with employees that includes key clauses such as job description, salary, working hours, and terms of termination.

Labor laws in Egypt distinguish between employees and contractors, with contractors generally having more flexibility and fewer protections under the law.

Minimum Wage in Egypt

Egypt enforces a minimum wage law. As of March 2025, the minimum wage is EGP 7,000 per month, applicable to both private and public sector employees. The public sector minimum was aligned to EGP 7,000 from July 2025 as part of the FY2025/2026 budget. There are exceptions to this rate for workers in certain sectors like agriculture and domestic work, who may have different minimum wage rates.

Additional measures include a cost of living allowance raised from EGP 600 to EGP 1,000, plus an EGP 300 incentive across all job grades.

Employers are additionally required to pay holiday pay to employees for public holidays.

Working Hours in Egypt

Standard working hours in Egypt are 8 hours per day and 48 hours per week. Daytime overtime is paid at 135% of the regular wage, and nighttime overtime is compensated at 170% of the regular wage. Work on public holidays is paid at 3x the daily wage, or the employee may choose a compensatory day off. Overtime is limited to a maximum of 2 hours per day, and employers must provide at least 24 hours' notice before assigning overtime.

The legal minimum hiring age is 14, with specific restrictions on the types of work those under 18 can perform, in accordance with child labor laws.

Payroll and Taxes in Egypt

Employers need to make several payroll deductions for social insurance. The employer contributes 18.75% and the employee contributes 11% of the insurable salary. As of January 2026, the insurable salary caps are EGP 2,700/month (minimum) and EGP 16,700/month (maximum). These caps increase 15% annually until 2027, then adjust for inflation from 2028.

Additionally, health insurance contributions apply: 3.25% for employers and 1% for employees.

These deductions provide benefits such as pensions, medical insurance, and unemployment aids. The current income tax regime in Egypt is progressive, with the following brackets:

Annual Income (EGP)	Tax Rate
Up to 40,000	0%
40,001 -- 55,000	10%
55,001 -- 70,000	15%
70,001 -- 200,000	20%
200,001 -- 400,000	22.5%
400,001 -- 1,200,000	25%
Above 1,200,000	27.5%

Residents receive a personal exemption of EGP 20,000 annually and are taxed on worldwide income. Non-residents are taxed on Egypt-sourced income only.

Statutory Leave Policies in Egypt

Egyptian labor law mandates several types of leave, both paid and unpaid.

Employees are entitled to 21 days of paid vacation after one year of service, with additional days for those who have worked over ten years or are over 50 years old.

Under the New Labor Law No. 14 of 2025 (effective September 2025), paid maternity leave has been extended to 4 months, with reduced working hours during pregnancy and protection against dismissal due to pregnancy or marriage. Establishments with 100 or more female staff must provide nurseries. Paternity leave is not mandated.

Sick leave is also provided based on a medical certificate.

List of public holidays in Egypt for 2026:

Holiday	Date
Coptic Christmas	Jan 7 (Wed)
Revolution Day / National Police Day	Jan 25 (Sun)
Eid al-Fitr*	Mar 20-22 (Fri-Sun)
Sham el-Nessim	Apr 13 (Mon)
Sinai Liberation Day	Apr 25 (Sat)
Labor Day	May 1 (Fri)
Arafat Day*	May 26 (Tue)
Eid al-Adha*	May 27-29 (Wed-Fri)
Islamic New Year*	Jun 17 (Wed)
June 30 Revolution Day	Jun 30 (Tue)
July 23 Revolution Day	Jul 23 (Thu)
Prophet Muhammad’s Birthday (Mawlid)*	Aug 26 (Wed)
Armed Forces Day	Oct 6 (Tue)

*Islamic holidays are based on the lunar calendar and dates may shift by 1-2 days depending on moon sighting.

Employee Benefits in Egypt

Egyptian employers must provide a range of benefits including social security, retirement benefits, healthcare benefits, gratuity, and annual bonuses. Employees are entitled to receive pensions, unemployment benefits, and medical insurance under the social security program. Under the 2025 labor law, employers must provide a mandatory annual raise of at least 3% of the social insured salary. The new law also includes broad protections against harassment, bullying, and discrimination in the workplace.

Employee Termination in Egypt

Egypt does not follow At-Will Employment laws; terminations must comply with labor law provisions. Under the New Labor Law No. 14 of 2025, termination is only allowed through a final judicial decision, with specialized labor courts operational from October 2025. Employers must provide valid reasons for dismissal, such as misconduct, redundancy, or incapacity. The resignation notice period has been increased from 2 to 3 months. Employers with 30 or more employees must contribute 0.25% of the minimum social insurance wage per employee annually to a training fund.

If employees or labor unions challenge a termination, legal proceedings can be initiated to resolve disputes. Termination benefits, including severance pay, depend on the circumstances of the dismissal and the employee’s tenure. Employers can legally terminate employees under conditions such as misconduct, underperformance, or redundancy, but must closely follow labor regulations to ensure compliance.