Table of Contents


Table of Contents


Egyptian Pound (EGP)

Payroll Frequency


Employer Taxes

19.75% - 20.75%

About Egypt

Egypt is the most densely populated Arab nation and the third highest in Africa. Located in Northern Africa and bordering the Mediterranean Sea, Egypt’s rich ancient history, as well as its modern impact in the region have made it both a major tourist attraction as well as a regional flash-point. As the seat of one of the most ancient civilizations in the world, Egypt’s rich trove of art, literature and architecture have attracted visitors from near and far. However, recent political turmoil, starting in 2011, has slowed down economic progress and failed to increase employment particularly among youths. Egypt’s GDP was $235.37 billion in 2017 with an unemployment rate estimated at 11.9%. The official language spoken in Egypt is Arabic although an elite class comprehends both English and French. Most of the population identifies as Muslim, with a substantial minority of Coptic Christians.

Employment Relationship

• Permanent Employment

The Labor Code of Egypt defines permanent employment as work performed for an indefinite term. If an employment relationship continues after the termination of its initial contract, it is considered to be an indefinite term contract. However, employment contracts with foreign nationals will not be regarded as indefinite-term agreements if the employment relationship continues after termination. 

• Fixed-Term or Specific-Purpose Contracts

The Labor Code in Egypt does not limit the maximum duration (including renewals) of fixed-term contracts. If the agreement is made for more than five years, an employee can terminate it after the completion of five years by providing a notice period of three months.  If the period of a labor contract concluded for a definite period expires and the two parties continue their employment relationship, it shall then be considered as a renewal of the contract for an indefinite period. This provision does not apply to contracts with foreign nationals. Labor contracts for an indefinite period can be renewed multiple times by mutual agreement between the employee and employer.

• Temporary Employment Contratcs

The Egyptian Labor Law classifies temporary workers into three categories: Provisional workers who complete work that by its nature forms part of the activity exercised by the employer. The accomplishment of this work necessitates a specific period and ends with its completion. Casual workers who complete work that by its nature, does not form part of the activity exercised by the employer, and accomplishment of the work does not take more than six months. Seasonal workers who complete work that is fulfilled in traditionally recognized periodical seasons. 

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 three months, and the employee cannot undergo a probation period more than once for the same employer.

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.  

Holidays / PTO

• Statutory 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

• Paid Annual 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 one 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 six 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.

Termination of Employment

• 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 his or her monthly wages for each of the first 5 years of employment, and one month’s wages for each subsequent year, unless they are entitled to old-age, disability or death benefits under the Social Insurance Scheme.