Egypt Enacts Major Labor Law Reform
Egypt’s new labor law expands maternity and paternity leave, mandates annual pay raises, formalizes flexible work, and adds worker protections.
🗓️ Effective: September 1, 2025TL;DR – Key Takeaways
- Maternity leave extended from 90 to 120 days
- Paid paternity leave introduced for the first time
- 3% minimum annual wage increase mandated
- One-month gratuity per year of service for long-term contracts
- Formal recognition of flexible and remote work arrangements
- Workplace harassment explicitly prohibited
- Specialized labor courts launching October 1, 2025
- 100% paid sick leave for the first 3 months
Summary of the Reform
Egypt’s Parliament has approved Law No. 14 of 2025, a sweeping reform of the nation’s labor code to better align with global standards. Key changes include an extension of maternity leave to 120 days, and the introduction of paid paternity leave for the first time. Workers on fixed-term contracts longer than 5 years are now entitled to one month of severance pay per year. The law mandates an annual pay increase of at least 3%, lowers the threshold for paid annual leave, improves sick leave pay to 100% for the first 3 months, and recognizes part-time, flexible, and remote work formally in law. Employers are also required to contribute 0.25% of payroll to a national training fund. New provisions outlaw workplace harassment and introduce specialized labor courts launching in October 2025 to streamline dispute resolution.Who This Affects
- Employers: Must revise leave policies, payroll systems, and contracts for compliance
- Employees & Job Seekers: Gain stronger protections, more generous leave, and guaranteed wage growth
- HR & Legal Teams: Should prepare for court changes and ensure anti-harassment compliance
What Employers Should Do Now
- Update employment contracts to reflect new leave entitlements and severance pay
- Adjust payroll systems to apply mandatory 3% annual raises
- Prepare flexible work policies that align with the law’s new definitions
- Train HR teams on workplace harassment and new dispute procedures
- Ensure payroll includes 0.25% contribution to the training fund