Private sector employment in Egypt is governed by the Labour Law No. 14 of 2025, which replaced the 2003 law on 1 September 2025, and social insurance by Law No. 148 of 2019. Here is what employers need to know about leave, pay, tax and ending employment under the new rules.
The new Labour Law increased several leave entitlements, most notably maternity leave. Annual leave grows with length of service.
15 days in the first year of service, 21 days from then on, and 30 days after 10 years of service or from age 50. Employees with disabilities get 45 days.
Fully paid, with no minimum service requirement, up to 3 times during employment. At least 45 days must be taken after the birth.
For emergencies, up to 2 days at a time. Casual leave is deducted from the annual leave balance.
Fathers are entitled to a paid day off on the day their child is born, up to 3 times during their employment, which is not deducted from annual leave. In establishments with 50 or more employees, a working mother with at least 1 year of service can take unpaid childcare leave of up to 2 years at a time, up to 3 times during her employment.
Employees who are unable to work because of illness are entitled to sick leave on the certificate of the competent medical authority. Pay during sick leave follows the Social Insurance and Pensions Law, which sets the rates and who pays them.
Set up each Egyptian leave type in IceHrm with its own accrual and approval rules, such as annual leave that steps up with service and casual leave that draws on the annual balance. Employees see their live balance before they apply, and managers see who is away on a shared calendar. Leave management →
The National Wages Council sets the private sector minimum wage. The Labour Law also requires an annual pay rise for every employee.
In force since 1 March 2025. Small establishments may apply for an exemption.
No more than 8 hours a day, excluding breaks, with at least one paid weekly rest day.
Every employee must receive a yearly increase of at least 3% of their social insurance wage.
Overtime is allowed only in special circumstances and is limited so that the employee is not at the workplace for more than 12 hours a day. It must be paid at a premium of at least 35% for daytime hours, and more at night or on rest days.
Capture attendance and overtime in IceHrm and feed the hours straight into payroll, so overtime premiums reflect what was actually worked. Time & attendance →
Salaries are taxed at progressive rates. Employers withhold salary tax every month and file it with the Egyptian Tax Authority. Each employee also receives an annual personal exemption of EGP 20,000 before the rates below are applied.
| Annual taxable income | Rate |
|---|---|
| EGP 0 – EGP 40,000 | 0% |
| EGP 40,001 – EGP 55,000 | 10% |
| EGP 55,001 – EGP 70,000 | 15% |
| EGP 70,001 – EGP 200,000 | 20% |
| EGP 200,001 – EGP 400,000 | 22.5% |
| EGP 400,001 – EGP 1,200,000 | 25% |
| Over EGP 1,200,000 | 27.5% |
Social insurance contributions are calculated on the employee’s insurable wage, which is subject to a monthly minimum and maximum that rise every January.
Of the insurable wage. The employee pays a further 11%, deducted from pay.
For 2026, with a minimum of EGP 2,700. Both limits increase each year until 2027.
Deducted from gross salary each month and paid over by the employer.
The new Labour Law also requires a contribution to the vocational training fund, and employers in governorates where the Universal Health Insurance system operates contribute to it as well.
Build Egyptian pay the way you already structure it, with your own salary components, deductions and formula columns, such as a social insurance column capped at the maximum insurable wage. Want to know how well IceHrm handles payroll calculations for Egypt? Contact us or see Payroll →
Employment in Egypt is not “at will”. An employer can only dismiss for a legitimate reason set out in the Labour Law, such as serious misconduct or lack of competence, and disputes go to specialised labour courts.
Under the new Labour Law, either party ending an indefinite contract must give 3 months’ written notice. The employee is paid as normal during the notice period.
| Situation | Compensation |
|---|---|
| Unjustified dismissal | At least 2 months’ wages per year of service |
| Lawful dismissal or resignation | No statutory severance |
Final pay should include the balance of unused annual leave. Employers must also keep employment records for 5 years after employment ends.
Egypt observes national and religious holidays. Islamic holidays follow the lunar calendar, so they move about 11 days earlier each year, and the government often moves holidays to a Thursday or Sunday to create long weekends.
Employees who work on a public holiday are entitled to extra pay for that day.
Leave groups give each office its own holiday calendar, so you can add the announced dates for Eid and moved holidays once and your Egyptian team gets the right days off automatically. Holiday calendars →
Employment contracts must be in writing and in Arabic (a bilingual version is common). The new Labour Law requires the contract to be drawn up in four copies, so that the employer, the employee and the relevant authorities each hold one.
Probation cannot exceed 3 months, and an employee can only be placed on probation once with the same employer.
Store signed Arabic and bilingual contracts on the employee’s record, send documents for e-signing, and track onboarding with task lists so nothing is missed on day one. Documents & e-signing →
This guide is general information to help you plan HR processes, not legal, tax or financial advice. Employment law and rates change regularly and awards, enterprise agreements and state rules may give employees more than the minimums shown here. Always confirm current requirements with the official sources or a qualified adviser.
Configure leave types, accrual rules and public holidays for Egypt, keep employee records and contracts in one place, and run payroll with your own salary components. Want to know how IceHrm handles payroll calculations for Egypt? Talk to us.
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