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Labor Law Compliance Guide for Egypt

Egypt Labor Law Guide for Hiring Employees and Contractors

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.
The economy of Egypt witnessed substantial growth throughout the year 2023, with its GDP reaching impressive heights. Several important sectors fueled this growth, including tourism, textiles and garments, agriculture, and the burgeoning IT and telecom industry.

The Egyptian currency is Egyptian Pound (EGP).

Egypt

Minimum Wage

EGP 6,000/month

Overtime Wage

135% 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: 18.75% of wages

Paid Vacation

21 days

Overtime Hours

8 hours/day

Night Shift Hours

135% of regular wages

Holidays

16 days

No Work Days

Friday

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 2024, the central minimum wage rate is EGP 6,000 per month for private sector employees. There are exceptions to this rate for workers in certain sectors like agriculture and domestic work, who may have different minimum wage rates.
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Currently, there are no state-mandated minimum wage rates differing from the federal rate. 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. Overtime is paid at 135% of the regular wage, and night shifts are also compensated at a 135% pay rate.
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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, amounting to 18.75% of the employee’s wage. These deductions provide benefits such as pensions, medical insurance, and unemployment aids. The current income tax regime in Egypt is progressive, with the following tax rates:
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Income Level (EGP) Applicable Tax Rate
0 – 15,000 0%
15,001 – 30,000 2.5%
30,001 – 45,000 10%
45,001 – 200,000 22.5%
Above 200,000 25%
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.
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Paid maternity leave is 90 days, and employees must work for a minimum of 10 months to be eligible. Paternity leave is not mandated.

Sick leave is also provided based on a medical certificate.

List of holidays in Egypt:

Name of HolidayDate
New Year’s DayJanuary 1
Revolution Day 2011January 25
Labour DayMay 1
Eid al-FitrVaries (Islamic)
Independence DayJune 30
Eid al-AdhaVaries (Islamic)
Revolution DayJuly 23
Islamic New YearVaries (Islamic)
Armed Forces DayOctober 6
Moulid El-NabiVaries (Islamic)
Coptic ChristmasJanuary 7
Sham El-NessimVaries (April)
Sinai Liberation DayApril 25
Easter SundayVaries (April)
Islamic New YearVaries (Islamic)
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.
Employee Termination in Egypt
Egypt does not follow At-Will Employment laws; terminations must comply with the labor law provisions. Employers must provide valid reasons for dismissal, such as misconduct, redundancy, or incapacity, and follow a proper procedure which includes a notice period. The notice period ranges from one to three months, depending on the employee’s length of service.
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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.

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