Egypt Employment Law & Compliance Guide for Employers
Key employment laws in Egypt: what employers need to know
Employment in Egypt is governed by Labour Law No. 14 of 2025, which replaced Law No. 12 of 2003 on 1 September 2025, and by Social Insurance and Pensions Law No. 148 of 2019. Foreign employers are most often surprised by the Arabic-language contract requirement, the 10% cap on foreign staff, and the rule that only a labour court can order dismissal as a disciplinary penalty. This page summarises the core employer rules for 2026, with sources for each fact.
Egypt employment rules at a glance
| Topic | What the rule is | Official source |
|---|---|---|
| Minimum wage | EGP 7,000 a month for private-sector employees, set by the National Council for Wages from 1 March 2025. In April 2026 the government announced a rise to EGP 8,000 from July 2026; check whether the Council has applied it to the private sector. | Ahram Online – Egypt to raise minimum wage to EGP 8,000 from July (1 April 2026) |
| Standard working hours | 8 hours a day and 48 hours a week, excluding rest breaks. Employees get a break of at least 1 hour after 5 hours of continuous work and a weekly rest day. | Middle East Briefing (Dezan Shira & Associates) – Egypt's new Labour Law 14/2025 (professional source) |
| Overtime pay | At least 35% extra for daytime overtime and 70% extra for night overtime. Work on the weekly rest day earns a substitute day off. Pregnant employees and mothers in the 6 months after birth cannot be required to work overtime. | Sadany & Partners via Mondaq – Egypt Labour Law 14 of 2025 (law-firm publication) |
| Paid annual leave | 15 days in the first year (pro rata after 6 months), 21 days from the second year, and 30 days after 10 years' service or from age 50. Employees with disabilities get 45 days. Unused leave is paid out on exit. | Sadany & Partners via Mondaq – Egypt Labour Law 14 of 2025 (law-firm publication) |
| Public holidays | Official religious and national holidays are announced by the government each year. An employee who works on an official holiday receives the day's pay plus double pay or, on written request, a substitute day off. | Soliman, Hashish & Partners – New Labour Law No. 14 of 2025 (law-firm publication) |
| Sick leave | Granted when the competent medical authority certifies that illness or injury prevents work. Sick pay follows the rates and durations of Social Insurance Law 148/2019; industrial establishments have separate, longer rules. | AMERELLER – Egypt: New Labor Law No. 14 of 2025 (law-firm publication) |
| Maternity and parental leave | 4 months of paid maternity leave, with no minimum service, up to 3 times during employment. Fathers get paid leave on the day of birth, up to 3 times. Unpaid childcare leave of up to 2 years applies in firms with 50+ staff. | EY Tax Alert – Egypt enacts new labor law (professional source) |
| Probation period | Maximum 3 months, and only once with the same employer. A new contract with the same person cannot restart probation. | Ibrachy & Dermarkar – New Egyptian Labor Law No. 14 of 2025 (law-firm publication) |
| Notice period | 3 months' written notice to end an indefinite contract, whatever the length of service (the 2003 law used 2 or 3 months). Resignations must be ratified by the labour authority. | Soliman, Hashish & Partners – New Labour Law No. 14 of 2025 (law-firm publication) |
| Severance pay | Ending an indefinite contract without a legitimate reason costs at least 2 months' wages per year of service. Early termination of a fixed-term contract by the employer costs 1 month's wages per year. Disciplinary dismissal requires a labour court ruling. | Soliman, Hashish & Partners – New Labour Law No. 14 of 2025 (law-firm publication) |
| Employer social contributions | 18.75% of the insurable wage. 2026 insurable wage: EGP 2,700 minimum, EGP 16,700 maximum a month, raised each January, so the employer share is capped at about EGP 3,131 a month. | PwC Worldwide Tax Summaries – Egypt, individual other taxes (professional source) |
| Employee social contributions | 11% of the insurable wage (EGP 2,700–16,700 a month in 2026). Employers also deduct 0.05% of gross monthly salary for the Martyrs Fund (Law 4 of 2021). | PwC Worldwide Tax Summaries – Egypt, individual other taxes (professional source) |
| Income tax on salaries | Employer withholds salary tax monthly. Annual rates: 0% up to EGP 40,000, then 10%, 15%, 20%, 22.5% and 25%, rising to 27.5% above EGP 1.2 million. An annual personal exemption of EGP 20,000 applies. | PwC Worldwide Tax Summaries – Egypt personal income tax (professional source) |
| Mandatory bonuses and 13th-month pay | No 13th-month salary. Labour Law 14/2025 requires an annual periodic raise of at least 3% of the social insurance wage, due a year after hiring or the last raise. Cuts need National Council for Wages approval. | AMERELLER – Egypt: New Labor Law No. 14 of 2025 (law-firm publication) |
| Work permits for foreign nationals | The Egyptian employer obtains a work permit from the Ministry of Labour under Resolution 279 of 2025, valid up to 1 year and renewable. Foreign staff may not exceed 10% of Egyptian staff, with exceptions such as free zones. | Sadany & Partners via Mondaq – Foreign work permits under Resolution 279 of 2025 (law-firm publication) |
| Employment contract requirements | Written contract in Arabic, in four copies (employer, employee, social insurance office, labour authority). A non-Arabic speaker may get a bilingual version, but the Arabic text prevails. | Soliman, Hashish & Partners – New Labour Law No. 14 of 2025 (law-firm publication) |
Employer obligations in Egypt, topic by topic
Filter by primary service relevance
What must an employment contract in Egypt contain under the new Labour Law 14 of 2025?
What are the maximum working hours and overtime rates in Egypt?
What is the private-sector minimum wage in Egypt in 2026, and is an annual raise mandatory?
How much annual, sick and maternity leave do employees get in Egypt?
What does an employee cost in Egypt on top of gross salary?
How can an employer end an employment contract in Egypt, and what does it cost?
How can a company hire a foreign national in Egypt?
Is it risky to engage independent contractors instead of employees in Egypt?
Key employment laws in Egypt and official sources
- Labour Law No. 14 of 2025 — Main employment statute from 1 September 2025: contracts, working time, leave, raises, notice, dismissal and labour courts.
- Social Insurance and Pensions Law No. 148 of 2019 — Sets employer (18.75%) and employee (11%) contributions, the insurable wage limits and sickness and pension benefits.
- Income Tax Law No. 91 of 2005 (as amended) — Sets salary tax bands, the personal exemption and the employer’s monthly withholding duty.
- Law No. 4 of 2021 (Martyrs Fund) — Requires a 0.05% deduction from employees’ gross monthly salaries.
- Universal Health Insurance Law No. 2 of 2018 — Adds employer (4%) and employee (1%) health contributions in governorates where the new system applies.
- Ministerial Resolution No. 279 of 2025 on foreign work permits — Sets the 10% foreign-staff ratio, experience and assistant requirements, permit duration and fees.
FAQs: hiring employees in Egypt
Can a foreign company hire employees in Egypt without a local entity?
Not directly. To register employees with social insurance, withhold salary tax and sponsor work permits, an employer needs an Egyptian legal presence, such as a company or branch. Without one, foreign companies usually hire through an Employer of Record, which employs staff under Labour Law 14 of 2025 and runs payroll, while the client directs the day-to-day work.
How much does an employee cost in Egypt on top of gross salary?
The main on-cost is employer social insurance of 18.75% of the insurable wage. In 2026 the insurable wage runs from EGP 2,700 to EGP 16,700 a month, so the employer share is capped at about EGP 3,131 a month. Where Universal Health Insurance applies, the employer adds 4% of the insurable wage. Also budget the mandatory annual raise of at least 3% and paid leave.
What is the minimum wage in Egypt in 2026?
The National Council for Wages set the private-sector minimum at EGP 7,000 a month from 1 March 2025. In April 2026 the government announced a rise to EGP 8,000 from July 2026, and a matching private-sector increase was expected. Check the Council’s latest decision before setting pay. The Council can grant exemptions to companies in financial difficulty.
How much notice and severance does an employer owe when dismissing an employee in Egypt?
Under Labour Law 14 of 2025, an indefinite contract is ended with 3 months’ written notice, whatever the length of service. Ending it without a legitimate reason costs at least 2 months’ wages per year of service, and ending a fixed-term contract early costs 1 month’s wages per year. Dismissal as a disciplinary penalty must be decided by a labour court.
Can a company hire a foreign national in Egypt, and what permit is needed?
Yes. The Egyptian employer must obtain a work permit from the Ministry of Labour under Resolution 279 of 2025, followed by work residence. Permits last up to 1 year and are renewable. Foreign staff may not exceed 10% of the Egyptian workforce, with some exemptions, and the worker needs at least 3 years’ certified experience. First-year fees start at EGP 6,000.
Is it risky to engage contractors instead of employees in Egypt?
Yes, when the contractor works under your supervision for a regular fee. Egyptian law then treats the relationship as employment, so the person can claim leave, notice and compensation, and the social insurance authority can demand back contributions. Use contractors only for independent, project-based work with deliverables and invoices.
Related NNRoad resources for Egypt: Employer of Record in Egypt · Payroll in Egypt · Hiring foreign employees in Egypt · Contractors and on-demand talent in Egypt · Egypt employer cost calculator
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Regulation Updates in Egypt
Discover the latest employment and compliance updates in Egypt — helping you stay ahead in a changing regulatory landscape.
Prime Ministerial Decree No. 982 of 2026 on Remote Work
What it is: A national decree that continues the use of remote work on Sundays as a required practice for covered establishments.
What it changes: It requires covered establishments to apply remote work on Sundays, creating employer obligations related to working time.
Who is affected:
- Workers at covered establishments
- Employers of covered establishments
What employers should do:
- Implement remote work on Sundays for applicable staff as specified by the decree
- Ensure compliance with the new Sunday remote work requirement in scheduling and timekeeping
Notes: Effective month: 2026-05.
Prime Ministerial Decree No. 1305 of 2026
What it is: Prime Ministerial Decree No. 1305 of 2026 continues the provisions of Prime Ministerial Decree No. 982 of 2026 and extends mandatory remote work on Sundays during May 2026, while introducing working time obligations for covered private employers.
What it changes: It extends Sunday mandatory remote work for entities covered by the decision for May 2026 and imposes working time obligations on covered private employers.
Who is affected:
- Workers and private employers covered by the decision
What employers should do:
- Implement or maintain remote work arrangements on Sundays for the entities covered by the decree during May 2026.
- Comply with the specified working time obligations for covered private employers.
Notes: Effective month: 2026-05.
Paid Holiday for Sham El-Nessim
What it is: A circular designates a paid holiday for Sham El-Nessim, requiring private-sector employers to treat Monday 2026-04-13 as a paid holiday.
What it changes: If staff are needed to work on that day, employers must provide double pay or grant a compensatory day off.
Who is affected:
- Workers in private-sector employment
- Employers in the private sector
What employers should do:
- Classify Monday 2026-04-13 as a paid holiday for eligible staff.
- If staff work on that day, ensure either double pay or a compensatory day off is provided.
Notes: Effective month: 2026-04.
Jul 2025: Egypt Enacts New Labor Law Expanding Worker Protections
Egypt’s new labor law expands maternity and paternity leave, mandates annual pay raises, formalizes flexible work, and adds worker protections.
Update first published on NNRoad in Jul 2025. The current rules are summarised in the sections above.