Hire compliantly inEgypt Talk to an Expert

POPULATION

116.5m

CURRENCY

£ (EGP)

CAPITAL CITY

Cairo

Overview

Egypt, officially the Arab Republic of Egypt, is a country in North Africa and the Middle East. Known for its ancient history, iconic monuments, and rich cultural heritage, Egypt is a popular destination for tourism and archaeological exploration. From the pyramids of Giza to the temples of Luxor, Egypt offers a wealth of historical and cultural attractions.

Egypt's economy is diverse, with key sectors including tourism, agriculture, and manufacturing. The country is a major producer of cotton, textiles, and agricultural products. Egypt's strategic location and growing economy make it an important player in the region.

Disclaimer: This content is for informational purposes only. We do not guarantee the accuracy or completeness of this content. It is not legal advice and shall not be relied on as such.

Local Employment Regulations

Employment Contracts

Written Agreements

In Egypt, the Labor Code mandates for employment contracts to be in writing. The contract must be written in Arabic, and 3 copies must be provided - 1 for the employer, 1 for the employee, and 1 to be submitted to the relevant social insurance office.

The contract must contain the following information:

  • The name of the employer and the workplace address
  • The name of the employee, their qualifications, profession, or craft, social insurance number, and home address
  • The nature and kind of work that is the subject of the contract
  • The wages to be paid to the employee, as well as the benefits in cash and in kind that were agreed upon
  • The probation period, if there is to be one
  • Any non-compete or non-solicitation agreements

If an employer wishes to conclude a non-compete or non-solicitation agreement with the employee, it must be in writing. The clause should stipulate what activities the employee is prohibited from engaging in, how long the employee must refrain from engaging in the activity, and in what geographic area. The clause can also stipulate compensation for breaching the terms of the clause. No specific regulations in Egyptian law define limitations on these agreements, but the agreement can only prohibit activity in so far as it harms the employer.

Oral Agreements

In Egypt, employers are obligated to draw up 3 copies of a written labor contract in Arabic. A copy must be retained by the employer, 1 copy must be given to the employee, and 1 copy is deposited with the relevant social security office.

If no written contract exists, workers may alone establish their rights by all methods of evidence. According to the Egyptian Civil Code, a contract is concluded as soon as the parties exchange the expression of 2 identical wills in writing or verbally or implied. The existence of a contract can be proven by expression or by the nature of dealing.

Implied Agreements

If no written contract exists, workers may alone establish their rights by all methods of evidence. According to the Egyptian Civil Code, a contract is concluded as soon as the parties exchange the expression of two identical wills in writing or verbally or implied. The existence of a contract can be proven by expression or by the nature of dealing.

Working Hours

In Egypt, the Labor Law stipulates that the standard working hours are 48 hours a week or 8 hours a day. This does not include the time given to an employee for meals and rest. Hours worked beyond 48 a week and 8 hours a day are considered overtime. The total working hours, including overtime, cannot exceed 10 hours a day, and employees cannot be at the workplace for more than 12 hours per day (10 working hours + 2 non-working hours). The period between the start of a work period and its end must not be spread over more than 12 hours.

Public Holidays

  • The 1st day of Muharram - date subject to change every year
  • Prophet Mohammed’s birthday - date subject to change every year
  • The 1st and 2nd days of Shawal (Eid-ul-Fitr) - dates subject to change every year
  • The 9th, 10th, and 11th days of Zoelhega (Eid-ul-Adha) - dates subject to change every year
  • Eastern Christmas - January 7
  • Spring day (Sham El Nessim) - date subject to change every year
  • Sinai Liberation Day - April 25
  • Labor Day - May 1
  • June 30 Revolution - June 30
  • Revolution Day - July 23
  • Islamic New Year - July 30
  • Armed Forces Day - October 6

Probationary Period

The Labor Code allows a probationary period to be included in the employment contract if it is included expressly in writing. However, the probationary period cannot exceed 3 months, and the employee cannot undergo a probation period more than once for the same employer.

Employment Termination/Severance

Notice Period

An employment contract can be terminated by the employer under the following circumstances:

  • With a notice period of 2 months if the employee has worked for less than 10 years for the same employer
  • With a notice period of 3 months if the employee has worked for more than 10 years for the same employer
  • Without notice in case of grave mistakes

Employees have the right to be absent for one day (eight hours) per week during the notice period to allow them to look for another job.

If an employer terminates a contract without notice or before the expiry of the notice, they must pay the employee an amount equal to their wages for the period of notice or remaining part.

Severance Benefits

According to the Labour Law of Egypt, employees are entitled to severance benefits in the following situations:

  • If the employer terminates the labor contract for economic reasons, employees are entitled to 1 month’s wages for each of the first 5 years of service and one and a half month’s wages for each year after that.
  • Employees retiring at 60 years are entitled to an indemnity calculated based on half of their monthly wages for each of the first 5 years of employment, and 1 month’s wages for each subsequent year, unless they are entitled to old-age, disability or death benefits under the Social Insurance Scheme.

Compensation

Minimum Wage

Effective March 1, 2025, Egypt mandated its first minimum wage for private sector employees of EGP 7,000 (Egyptian pounds) per month. The national minimum wage for public sector employees remains EGP 4,000 per month.

The Labor Law of Egypt requires wages to be paid at regular intervals as follows:

  • Employees who are paid on a monthly basis must receive their wages at least once a month
  • Non-Monthly Payment: For employees who are not paid on a monthly basis (e.g., those paid daily, weekly, or bi-weekly), wages must be paid at least once every week.

Employers must pay wages on a working day and during working hours at the place of work, unless otherwise agreed upon in the employment contract.

Overtime, Holiday & Vacation Pay

The Egyptian labor code stipulates that any work performed over 48 hours a week or 8 hours a day is considered overtime. Overtime is allowed in cases of unusual work emergencies, provided that a written justification for such overtime work has been submitted to the relevant administrative department. An employee is entitled to an overtime rate of at least 135% of the employee’s standard hourly wage for overtime work performed during the day and 170% of the standard hourly wage for overtime work performed during the night. An employee is entitled to 200% of the standard hourly wage for overtime work performed on holidays or weekly days of rest.

Employees are entitled to their regular salary during annual leave.

Immigration & Visas

Visas

The following visa categories are available in Egypt:

  • Single entry visas - valid for 6 months and allow a maximum stay of 60 days
  • Multiple entry visas - valid for 6 months and allow a collective stay of 90 days
  • Business visas - applications must be submitted with a letter from the visiting person's company stating the purpose of the visit, as well as the name and address of the organization to be visited in Egypt, valid up to 90 days
  • Tourist visa - valid for up to 90 days
  • Medical visa - issued to individuals traveling to Egypt for medical treatment, examinations, or procedures
  • Visit visa - allows visitors to stay with family or friends in Egypt for up to 90 days. It can be obtained upon arrival at the airport
  • Student visa - issued to foreign students who wish to study in Egypt; valid for the duration of the course
  • Work visa - issued to foreign nationals willing to work in Egypt; must be applied through the embassy

Work Permits

With exceptions for specific work categories, the labor code requires foreign nationals who wish to work in Egypt to obtain a work permit through the Ministry of Manpower and Training Office. The work permit is issued within 48 hours after the application is approved. It is valid for one year and can be renewed for a fee.

The law limits the number of foreign workers in any organization to 10% of the total workforce. The employer must register foreign employees with the Directorate of Manpower and Immigration and notify the agency of specific details such as their personal data, job requirements, as well as qualifications for the job.

Population 116.5m

Population in total, including all residents regardless of legal status © 2024 - WBGEUROSTAT

43.3%

Urban Population

72.7%

Internet access

43.1%

Banking access

93%

Mobile phone access

DATA SOURCES

Population: The World Bank: World Development Indicators: World Bank Group • World Population Prospects, United Nations (UN), uri: https://population.un.org/wpp/, publisher: UN Population Division; Statistical databases and publications from national statistical offices, National Statistical Offices, uri: https://unstats.un.org/home/nso_sites/, publisher: National Statistical Offices; Eurostat: Demographic Statistics, Eurostat (ESTAT), uri: https://ec.europa.eu/eurostat/data/database?node_code=earn_ses_monthly, publisher: Eurostat; Population and Vital Statistics Report (various years), United Nations (UN), uri: https://unstats.un.org, publisher: UN Statistics Division

Urban Population: The World Bank: World Development Indicators: World Bank Group • World Urbanization Prospects, United Nations (UN), uri: https://population.un.org/wup/, publisher: UN Population Division

Internet access: The World Bank: World Development Indicators: World Bank Group • World Telecommunication/ICT Indicators Database, ITU (ITU), uri: https://datahub.itu.int/

Banking access: The World Bank: World Development Indicators: World Bank Group • FINDEX, WBG (WB), uri: https://www.worldbank.org/en/publication/globalfindex

Mobile phone access: The World Bank: World Development Indicators: World Bank Group • World Telecommunication/ICT Indicators Database, ITU (ITU)

Social Protection & Benefits

Vacation Leave

Employees accrue or accumulate annual leave from the first day of employment, even during a probation period. The annual leave is for 21 days with full pay for employees with at least 1 year in service. For employees with more than ten years in service or who are over 50 years of age, the annual leave is increased to 30 days.

For service under one year (but at least 6 months), the employee is entitled to leave in proportion to the period spent at work.

Sick Leave

In Egypt, the labor code provides employees with sick leave if their illness is confirmed by a report from the relevant medical authorities. During the period of sickness, the worker is entitled to wage replacement compensation from the Public Authority for Health Insurance. The employee is eligible for sick leave with a sickness allowance up to 180 days in a year.

The sickness allowance is paid by the Public Authority for Health Insurance as 75% of the daily wages of the employee for the first 90 days of the sickness and 85% of the daily wages for the next 90 days of sickness. In the case of tuberculosis, mental illness, or a chronic disease, 100% of the wage is paid while the employee is sick until recovery.

Maternity Leave

The Egyptian Labour Law provides female employees who have spent ten months in the service of their employer the right to a maternity leave of 90 days, with full compensation. Leave is compulsory for 45 days after childbirth. An employee is required to submit a medical certificate indicating the expected date of delivery.

Employees are entitled to maternity leave only twice during their period of service with the employer.

An employer is prohibited from terminating a female worker during her maternity leave.

Paternity Leave

The Labour Law of Egypt does not provide for paternity leave.

Social Security

Pension

Egypt's pension system underwent significant recent changes as the Social Insurance Law No. 148 of 2019 became effective on January 1, 2020. The new law replaces many existing social security regulations and consolidates several different social insurance programs into one.

The insured person contributes 9% of monthly covered earnings, and the employer contributes 12%. Insured persons qualify for an old-age pension once they reach age 60 with at least 120 months of contributions.

Insured persons who qualify for an old-age pension will receive 2.22% of the insured's average annual covered earnings for each year of contributions, up to 36 years. Average earnings are now determined based on the insured's lifetime earnings (adjusted for inflation). The new calculation formula only applies to periods of service since the new law's implementation date.

The National Bank of Egypt and Misr Life Insurance now offer Egyptians abroad a pension product for contributions made in U.S. Dollars called Maash Bokra. Clients of the National Bank of Egypt who are within Egypt may also purchase 1 of these policies.

Dependents/Survivors Benefits

In Egypt, the social insurance system provides benefits to eligible survivors of insured persons.

A survivors pension is paid if the deceased received or was entitled to receive an old-age or disability pension. The pension is also paid if the deceased was younger than age 60 and had at least three consecutive months (or a total of six months) of contributions or at least 10 years of contributions if the death occurred more than a year after employment ceased.

Eligible survivors include a dependent widow, a divorced wife without any other source of income and previously married to the deceased for at least 20 years, a dependent widower with a disability, dependent sons younger than age 21 (age 26 if a full-time student, no limit if disabled), unmarried dependent daughters, dependent parents, and, in the absence of eligible sons or daughters, dependent brothers and sisters under certain conditions.

Invalidity Benefits

In Egypt, the social insurance program provides a disability pension to insured workers younger than the regular retirement age (60) who are assessed with a total or partial disability and permanent incapacity for any gainful employment and have at least 3 consecutive months or a total of 6 months of contributions (there is no minimum qualifying period for public-sector employees).

The disability pension consists of a base pension and variable pension that is calculated as follows:

  • Base pension - up to 2.2% (2.5% for arduous work or 2.8% for dangerous work) of the insured’s reference monthly base earnings is paid for each year of contributions, up to 36 years.

  • Variable pension - 2.2% (2.5% for arduous work or 2.8% for dangerous work) of the insured’s reference monthly variable earnings is paid for each year of contributions for total disability.

The social insurance scheme for workplace injuries uses a similar base and variable pension system, but with different amounts.

Minimum Age

The legal minimum age for employment is 14 years in Egypt. Employers who hire individuals below the age of 16 years must issue a card to such employees that serves as proof of work. Working hours for juveniles between ages 14 and 18 years may not exceed six hours per day. Young employees have a right to at least a one-hour break after four hours of continuous work. Employers are prohibited from making juvenile employees work overtime, on weekly rest days, or between 7:00 PM to 7:00 AM.

Unemployment 7.2%

Share of the labor force that is unemployed, but available for and seeking employment © 2024 - WBGILO

42.6%

Labor force population share

17.6%

Female share of labor force

70%

Healthcare access

DATA SOURCES

Unemployment: The World Bank: World Development Indicators: World Bank Group • ILO Modelled Estimates database (ILOEST), ILO (ILO), uri: https://ilostat.ilo.org/data/bulk/, publisher: ILOSTAT, type: external database, date accessed: January 07, 2025.

Labor force (total): The World Bank: World Development Indicators: World Bank Group • ILO (ILO), type: estimates based on external database; United Nations (UN), publisher: UN Population Division; Staff estimates, WBG (WB)

Labor force population share: The World Bank: World Development Indicators: World Bank Group • ILO Modelled Estimates database (ILOEST), ILO (ILO), uri: https://ilostat.ilo.org/data/bulk/, publisher: ILOSTAT, type: external database, date accessed: January 07, 2025

Female share of labor force: The World Bank: World Development Indicators: World Bank Group • ILO (ILO), type: estimates based on external database; United Nations (UN), publisher: UN Population Division; Staff estimates, WBG (WB)

Healthcare access: The World Bank: World Development Indicators: World Bank Group • GHO, WHO (WHO), uri: https://www.who.int/data/gho/data/themes/topics/service-coverage

         

CareersAbout UsAnalyst Reviews & ReportsPartner with AtlasPricing

How We Help

Global Hiring & ExpansionConsulting & SupportMergers & AcquisitionsCountry ComplianceEmployee BenefitsTalent OnboardingExpense Management

Who We Help

Financial ServicesTechnologyLife Science & PharmaNon-Profit & NGOEnergy, Oil & GasPrivate Equity & VCStartup & Growing

Resources & Tools

Global Salary CalculatorGlobal Employee Cost CalculatorCountry InsightsCase StudiesReports & WhitepapersEvents & WebinarsBlog