Employment Laws in Egypt: A Comprehensive Guide for 2026

What are the employment contracts in Egypt?

Employment contracts in Egypt are governed primarily by Labor Law No. 14 of 2025, which is the current legislation regulating private-sector employment relationships.

The Egyptian Civil Code No. 131 of 1948 may also apply to general contractual matters where the labor law does not provide specific provisions.

What are the types of employment contracts in Egypt?

Under Egyptian law, employment contracts generally fall into the following categories:

• Fixed-term contracts: These contracts are for a specific duration. They automatically terminate at the end of the agreed period unless renewed.
• Indefinite-term contracts: These contracts do not specify an end date and continue until terminated by either party in accordance with legal requirements.
• Probationary contracts: Employers include a probation period to assess the employee’s suitability before confirming permanent employment.

What are the minimum requirements of a contract?

Egyptian labor law sets out specific formal requirements for employment contracts, which include:

Language: Contracts must be drafted in Arabic. If a foreign worker does not understand Arabic, the contract may be prepared in both Arabic and the worker’s language. In case of discrepancies, the Arabic version prevails.

Number of copies: The contract must be prepared in four copies:

• One for the employer
• One for the employee
• One for the competent social insurance office
• One for the competent administrative authority

Key considerations

• Employment contracts must clearly define essential terms such as job role, salary, working hours, and duration (if applicable).
• Special rules may apply to foreign workers, including work permit requirements.

How are working hours and overtime regulated in Egypt?

The labor laws of Egypt regulate working hours and overtime. Mentioned below is an overview of the same.

Regular working hours

• According to the employment laws in Egypt, the standard working hours are set at 48 hours per week.
• However, it is a common practice in Egyptian companies to follow 40 hours of work per week.

Overtime regulations and compensation

Overtime work refers to hours worked exceeding the standard working hours. In such cases, employers are required to compensate their employees at a higher rate than regular hours. It includes

• Overtime during daytime work: at least 35% above the normal hourly wage (that is 135% of the base rate).
• Overtime during night work: at least 70% above the normal hourly wage (that is 170% of the base rate).
• Work on weekly rest days or official holidays: typically paid at double the wage for that day, and in some cases employees are also entitled to a substitute rest day.

Employees are generally entitled to at least one hour of rest during the workday, and employees should not work more than five consecutive hours without a break. This is one of the most commonly searched aspects of Egyptian working time rules.

What are the minimum wage and compensation requirements in Egypt?

Minimum wage rate in Egypt

• Employees in Egypt must typically be paid in the official currency, the Egyptian pound (EGP, ج.م).
• The national minimum wage for employees is set at EGP 8,000.

What are the factors affecting wage determination?

Wage determination in Egypt is a complex process and can be influenced by multiple factors, such as economic, social, and regulatory considerations. It includes

• Economic conditions

Economic factors such as inflation, economic growth, productivity levels, and overall market demand and supply for labor play a significant role in wage determination. For example, in times of economic prosperity, wages may increase due to higher demand for labor.

• Global and industry trends

Global economic trends, technological advancements, and industry-specific factors can also impact wage determination. Industries experiencing significant growth or undergoing structural changes may offer higher wages to attract skilled workers.

• Cost of living

Areas with a higher cost of living, such as urban centers, typically provide high compensation to their employees. This includes various components such as housing, transportation, utilities, and healthcare.

Minimum wage is only one part of the total compensation package in Egypt. Employers also need to factor in statutory social insurance contributions, overtime entitlements, and any mandatory or customary allowances and bonuses.

What are the typical employee benefits in Egypt?

Employee benefits provide workers with various forms of financial protection, healthcare coverage, and support. Some of the key aspects of these benefits include

Statutory benefits

Public health insurance

Public health insurance in Egypt is governed by the Universal Health Insurance Law No. 2 of 2018, which came into effect in 2019. The system is mandatory, and it is being rolled out gradually across different governorates rather than applied nationwide simultaneously.

Public pension system

The public pension system is regulated by Social Insurance Law No. 148 of 2019 and is designed to cover employees across both public and private sectors, as well as certain categories of self-employed workers.

Contribution limits and the maximum insurable salary are subject to periodic adjustment by Egypt’s National Organization for Social Insurance (NOSI).

The statutory retirement age is 60 years, but it is gradually increasing to 65 years by 2040.

Dependents’/survivors’ benefits

Survivors’ benefits provide financial support to eligible dependents of a deceased insured worker. Eligible beneficiaries include the widow or widower, children, parents, and siblings. Pension calculations generally follow the same framework as old-age pensions.

Unemployment benefits

Unemployment benefits are provided under the Social Insurance Law to eligible workers who lose their jobs involuntarily. Eligibility, duration, and payment levels depend on the worker’s contribution history.

Benefits are calculated as a percentage of the worker’s previous wage and typically decrease over time. A waiting period applies before payments begin.

Additional perks and benefits

13th-month pay

Although not legally mandated by the employment laws in Egypt, most employers are known to provide a 13th-month salary as a bonus to their employees.

The amount usually varies depending on the employee's annual salary. It can be paid any time during the year, although the common norm includes the month of December.

Social security contributions and requirements

Both employees and employers are required to make contributions to the social security system of 11% and 18.75%, respectively.

The minimum social insurance salary is EGP 2,700, and the maximum is set at EGP 16,700.

Vacations and paid time-off in Egypt

Employees in Egypt are entitled to a range of statutory leave benefits under labor law. These include annual leave, sick leave, maternity and paternity leave, and compassionate leave, each with specific eligibility and payment requirements.

What are the public holidays in Egypt?

Egypt follows the Gregorian calendar and observes several national public holidays every year, including religious and civic holidays. Islamic holiday dates depend on moon sightings and may change from the dates listed.

How does employee termination work in Egypt?

Termination of employment in Egypt is governed by Labor Law No. 14 of 2025 and related regulations. The law aims to protect the rights of both employers and employees by requiring valid grounds, procedural fairness, and, in some cases, prior approval from competent authorities.

Grounds for termination:

Termination may occur under several lawful scenarios:

Mutual or natural termination

• Mutual agreement between employer and employee
• Retirement upon reaching statutory retirement age
• Permanent illness or disability preventing the employee from performing their duties
• Business-related changes affecting the employment relationship

Termination during probation

During the probation period, an employer may terminate employment if the employee is found unsuitable for the role. Common reasons include:

• Role misfit
• Poor performance
• Misconduct or inappropriate behavior

Termination due to poor performance

Employers may terminate employment for inefficiency or poor performance. However:

• Employers must follow formal disciplinary procedures
• Employees must be allowed to improve
• Performance improvement plans (PIPs) are not legally required but are commonly used in practice

Absence due to illness cannot be used as a ground for termination if it is supported by medical certification and falls within statutory sick leave entitlements.

Termination with cause (disciplinary dismissal)

An employer may terminate employment without notice in cases of serious misconduct, including:

• Breach of contract or workplace obligations
• Gross negligence causing significant damage to the employer
• Dishonesty or fraud
• Sexual harassment in the workplace
• Persistent unauthorized absence
• Violation of workplace rules after due process
• Criminal conviction affecting the employee’s ability to perform their role

Termination due to redundancy or economic reasons

Employers may terminate employees due to economic or organizational reasons, such as:

• Closure of operations
• Reorganization or restructuring
• Reduced workload

However, such terminations:

• Must follow legally prescribed procedures
• May require approval from competent authorities
• Must comply with collective dismissal rules where applicable

Financial difficulties alone (e.g., cash flow issues) are not sufficient grounds unless they form part of a legally recognized redundancy process.

Notice period and severance pay

• In indefinite contracts, the notice period is dependent on the length of service of the employee with the employer.
• If the worker’s uninterrupted period of service with the employer is less than ten years, the notice period is two months.
• If the service period exceeds ten years, the notice period is extended to three months.
• In fixed-term contracts, either party to the contract must provide one month’s notice to the other party in case of resignation or if the employer wishes to terminate the contract.
• If an employee has been terminated for economic reasons, they are entitled to severance or redundancy payments.
• For the first five years of service, an employee is entitled to severance pay equivalent to one month’s salary for each year worked.
• For each subsequent year beyond the initial five years of service, employees can avail severance pay at a rate of one and a half months’ salary for each year worked.

Employers may face compliance challenges when managing terminations in Egypt, particularly where documentation, notice obligations, and statutory indemnity requirements apply.

Skuad’s Shield helps employers identify and address these obligations throughout the employment lifecycle.

Here is what Skuad helps with:

• Employment contract generation aligned with local labor requirements
• Administration of statutory benefits and paid leave through the employment lifecycle
• Payroll processing in 70+ currencies with automated tax withholding and year-end reconciliation
• Termination and offboarding workflows, including notice and severance calculations

What are the workplace discrimination rules in Egypt?

In Egypt, workplace discrimination is addressed through labor legislation and related laws. They aim to promote equality and prevent discrimination in employment relationships.

Prohibitions against workplace discrimination

Labor Law No. 14 of 2025 prohibits discrimination in employment. Employers must not discriminate against workers based on:

• Gender
• Origin
• Language
• Religion
• Belief

These protections apply to all workers in Egypt, including foreign workers, subject to applicable employment and work permit regulations.

In addition to labor law protections, other legislation such as Law No. 10 of 2018 on the Rights of Persons with Disabilities provides further safeguards against discrimination for specific groups.

What are the health and safety regulations in Egypt?

Occupational health and safety (OHS) in Egypt is governed primarily by Labor Law No. 14 of 2025.

Under the current labor law, employers are required to:

• Provide a safe and healthy working environment
• Implement preventive measures to reduce workplace hazards
• Conduct risk assessments and monitor workplace conditions
• Provide appropriate training and protective equipment to employees
• Report workplace accidents and occupational diseases to the relevant authorities

These obligations apply to all workers in Egypt, including foreign workers, subject to applicable employment regulations.

Stay compliant when hiring in Egypt with Skuad

By now, you have understood the key aspects of employment laws in Egypt, including employment contracts, working hours, employee benefits, leave entitlements, termination requirements, and workplace compliance obligations. Knowing these requirements helps employers manage their workforce in line with local labor laws.

Skuad helps businesses hire, onboard, pay, and manage employees in Egypt while supporting compliance with local employment requirements. It also supports compliant contracts, payroll administration, statutory benefits, and tax contributions across the employment lifecycle.

Whether you are hiring your first employee or expanding your team, Skuad helps you manage your workforce in Egypt through a single global platform. This gives your HR teams greater visibility into employment and payroll operations across countries.

Book a demo to see how Skuad supports compliant hiring in Egypt.

FAQs

1.What is an employer of record in Egypt?

An employer of record legally employs workers in Egypt on behalf of a foreign company, while the company directs day-to-day work. The EOR typically manages written employment contracts, payroll, tax withholding, and registration with the National Organization for Social Insurance under Labor Law No. 14 of 2025.

2.How much does an employer of record cost in Egypt?

Egypt EOR pricing usually combines the employee’s gross salary, statutory benefits, employer social insurance, and a provider fee charged monthly. For 2026, employer social insurance is generally 18.75%, applied within a monthly insurable wage range of EGP 2,700 to EGP 16,700.

3.Can a foreign company hire employees in Egypt without a local entity?

Foreign companies can typically hire employees in Egypt without forming a local subsidiary by using an EOR. The EOR issues the written employment agreement, runs payroll, and handles National Organization for Social Insurance registration, while the client manages daily responsibilities and performance.

4.What compliance risks should companies consider when using an EOR in Egypt?

Companies should verify that the EOR follows Egypt’s Labor Law No. 14 of 2025, maintains written contracts, withholds payroll taxes, and registers eligible employees for social insurance. Errors involving wage floors, statutory deductions, leave, or termination procedures may trigger employee claims, assessments, or administrative penalties.

5.How does using an EOR compare with setting up a legal entity in Egypt?

An EOR is generally more suitable for testing the Egyptian market or hiring a small team because it avoids immediate subsidiary formation and local payroll infrastructure. Entity setup may offer greater long-term control, but it requires corporate registration, banking, tax, labor, and social insurance administration in Egypt.

6.How quickly can an EOR onboard an employee in Egypt?

The timeline varies, but an EOR can typically onboard an employee in Egypt within one to two weeks once identity, compensation, role, and contract details are complete. Delays may arise from Arabic documentation, social insurance registration, work authorization for foreign nationals, or additional employer approvals.