Egypt has one of the largest workforces in the Middle East and North Africa, and its employment framework is detailed, recently updated, and actively enforced by the Ministry of Manpower. For foreign companies, the system is more interconnected than it first appears: your contract language affects what MOHRE will register, your social insurance status affects what visas you can process, and the 2025 labour law amendments changed several entitlements that many guides still have wrong.
This guide covers every area of Egyptian employment law that matters to an HR director or finance lead: contracts, working hours, social insurance, leave entitlements, termination rules, and foreign worker requirements. Where the law changed in 2025, we say so explicitly.
What HR compliance means in egypt
Egyptian employment law sits at the intersection of several overlapping obligations. Getting compliance right means satisfying requirements across labour law, social insurance registration, tax withholding, and work permit rules simultaneously.
Which laws apply
The primary statute is Labour Law No. 12 of 2003, which governs employment contracts, working hours, leave, termination, and dispute resolution. Labour Law No. 14 of 2025, effective September 1, 2025, introduced the most significant amendments in years, particularly to sick leave and maternity entitlements. Individual sectors may carry additional requirements, but Law No. 12 and its amendments set the floor for all private-sector employers.
Which ministry governs employment
The Ministry of Manpower and Migration oversees labour law enforcement, work permits, and labour office registration. Employment contracts must be registered with the local Labour Office, and work permit applications go through the same ministry.
How the obligations connect
Social insurance registration, contract registration, and tax withholding are not independent tasks. The National Organisation for Social Insurance (NOSI) expects employers to register new employees within 15 days of their start date. The Egyptian Tax Authority (ETA) expects monthly payroll tax remittances. Failing one obligation typically triggers scrutiny on the others.
Key provisions of egyptian labour law
Labour Law No. 12 of 2003 has governed Egyptian workplaces for more than two decades, but the 2025 amendments mean employers must review their existing policies rather than assume older practices remain valid.
Core employer obligations under the law
Employers must provide written employment contracts, register those contracts with the Labour Office, maintain safe working conditions, pay wages through bank transfer, contribute to NOSI for every employee, and withhold and remit income tax monthly. Non-compliance with any of these obligations carries financial penalties and, in termination disputes, can result in court-ordered compensation.
What changed in 2025
Labour Law No. 14 of 2025 made two major changes. First, maternity leave increased from 90 days to 120 days at full pay, and the career limit rose from two instances to three. Second, sick leave entitlements shifted to a tiered pay structure over a 12-month rolling period rather than a flat rate. Both changes apply to all private-sector employers from September 1, 2025.
Employment contract requirements
Every employee in Egypt must have a written employment contract before starting work. Verbal agreements carry no legal weight, and the absence of a written contract exposes employers to liability if a dispute reaches the Labour Court.
Contract types
Egyptian law recognises two contract types: indefinite (open-ended) and fixed-term. Indefinite contracts are the default and carry the full weight of termination protections. Fixed-term contracts are permitted for specific projects or temporary needs, but employers should be aware that repeatedly renewing a fixed-term contract for the same role creates a legal risk of the contract converting to an indefinite one.
Mandatory contract clauses
Every contract must include the employee’s full details, job title, exact salary in Egyptian pounds (EGP), working hours, leave entitlement, notice period, social insurance details, probation terms, and termination provisions. The requirement for an exact EGP figure is strict: vague language like “competitive salary” is not accepted by the Labour Office and will cause registration to fail.
Language and registration
Arabic is the controlling language for all employment contracts in Egypt. Bilingual Arabic-English contracts are standard practice for multinational employers, but when there is any conflict between the two versions, the Arabic text governs. Contracts require physical signatures and must be registered with the local Labour Office.
Probation periods
Probation cannot exceed three months. During probation, either party can end the employment relationship without notice and without compensation. Once probation ends, standard termination rules apply.
Working hours, overtime, and ramadan rules
Egyptian law sets clear limits on working hours and requires premium pay for time beyond the standard schedule. These rules apply to all employees regardless of seniority.
| Parameter | Rule |
|---|---|
| Standard hours | 8 hours/day, 48 hours/week |
| Standard workweek | Sunday to Thursday |
| Maximum consecutive hours without break | 5 hours |
| Ramadan (Muslim employees) | 6 hours/day |
| Regular overtime rate | 125% of normal rate |
| Night or Friday/holiday overtime rate | 175% of normal rate |
| Public holidays worked | Double pay |
Overtime
Overtime pay is not discretionary. Employees who work beyond the standard 8-hour day are entitled to 125% of their normal hourly rate. Work performed at night or on Fridays and public holidays attracts a higher premium of 175%.
Ramadan
During the holy month of Ramadan, Muslim employees are entitled to a reduced working day of 6 hours. This is a legal obligation, not a workplace policy that employers can opt out of.
Minimum wage
The private sector minimum wage in Egypt is EGP 7,000 per month, effective March 1, 2025. This figure will rise to EGP 8,000 per month from July 2026. All employment contracts must specify salary in EGP, and no contract can fall below the applicable minimum wage at the time of signing.
Foreign companies paying in foreign currency need to ensure that the EGP equivalent of the salary, at any point during employment, meets or exceeds the minimum wage floor.
Social insurance under nosi
Every employer in Egypt must register with the National Organisation for Social Insurance (NOSI) and make monthly contributions for each employee. This is not optional for foreign-owned companies operating in Egypt.
Contribution rates
| Party | Rate | Basis |
|---|---|---|
| Employee | 11% | Insured salary |
| Employer | 18.75% | Insured salary |
| Directors on commercial register | 21% flat | Fixed at EGP 16,700 |
Insured salary ceiling
For 2026, the insured salary range is EGP 2,700 to EGP 16,700 per month. Contributions are calculated on the insured salary, not necessarily the total salary. If an employee earns above EGP 16,700, contributions are still capped at the ceiling figure.
Registration deadline
Employers must register each new employee with NOSI within 15 days of their start date. Late registration triggers fines. If employment ends, the work permit cancellation obligation (for foreign workers) runs in parallel with NOSI deregistration.
Work injury insurance
NOSI contributions cover work injury insurance. Employers do not need to arrange separate accident coverage, as this sits within the social insurance framework.
Leave entitlements
Egyptian law provides several categories of leave. The 2025 amendments significantly changed sick leave and maternity leave, so policies written before September 1, 2025 need to be updated.
Annual leave
| Service length | Annual leave entitlement |
|---|---|
| Year 1 | 15 calendar days (pro-rated) |
| 1 to 10 years | 21 days per year |
| 10+ years or age 50+ | 30 days per year |
Employees must take at least 6 consecutive days of annual leave per year. Employers cannot require employees to forfeit this minimum through cash-in-lieu arrangements.
Sick leave (labour law no. 14 of 2025)
The 2025 amendment replaced the previous flat-rate sick leave structure with a tiered pay model over a 12-month rolling period.
| Period | Pay rate |
|---|---|
| Months 1 to 3 | 100% |
| Months 4 to 9 | 85% |
| Months 10 to 12 | 75% |
Sick leave requires a medical certificate. The maximum entitlement is 12 months in any rolling 3-year period. Employers cannot dismiss an employee while they are on sick leave within their entitlement.
Maternity leave (labour law no. 14 of 2025)
Maternity leave is now 120 days at full pay, up from 90 days under the previous law. The career limit increased from two instances to three. At least 45 days of the leave must follow the birth. Maternity leave pay runs through the social insurance system, not directly from the employer’s payroll, provided the employee is registered with NOSI. Dismissal during pregnancy or maternity leave is prohibited.
Paternity leave
Fathers are entitled to 1 day of paid leave per child, for up to 3 children.
Hajj leave
Muslim employees who have completed at least 5 years of service are entitled to one month of paid Hajj leave once in their career.
Public holidays
Egypt observes 14 public holidays per year. Employees required to work on a public holiday must receive double pay.
Notice periods and termination
Both employers and employees on indefinite contracts must give 90 days’ written notice to end the employment relationship. This applies regardless of seniority or length of service.
Termination types and severance
| Termination type | Severance obligation |
|---|---|
| With cause (misconduct, absence) | None, but documented process required |
| Without cause (unlawful dismissal) | Minimum 2 months’ salary per year of service |
| Fair termination (redundancy) | 0.5 months/year for first 5 years; 1 month/year thereafter |
| Resignation | No severance; unused annual leave paid out |
Final settlement
The employer must pay all amounts owed, including unused leave, within 15 days of the termination date. Late payment of the final settlement exposes the employer to additional claims at the Labour Court.
Protected employees
Egyptian law prohibits dismissal during pregnancy, maternity leave, or while an employee is on sick leave within their entitlement. Any termination during these periods is automatically treated as unlawful.
Dispute resolution
Before any employment dispute can reach the Labour Court, the Ministry of Manpower runs a mandatory mediation process. Employers must participate in this step. If mediation fails, the case proceeds to the Labour Court, which can order reinstatement or compensation.
Foreign worker regulations
Hiring non-Egyptian nationals requires additional steps beyond the standard employment contract and NOSI registration. These obligations fall entirely on the employer.
Work permits
All foreign employees need a work permit issued by the Ministry of Manpower. Permits are valid for one year and must be renewed annually. The employer is responsible for obtaining, renewing, and cancelling the permit.
Workforce quota
Foreign workers are limited to 10% of the total workforce under the general rule. Exceptions exist for specialised roles where the required expertise is not available locally, but these exceptions require justification and ministry approval rather than self-certification.
Permit cancellation
When a foreign employee’s employment ends for any reason, the employer must cancel their work permit within 15 days. Failing to do so creates ongoing liability, as the employer remains responsible for the permit holder’s compliance status.
Payroll compliance
Egyptian payroll compliance sits across two authorities: the ETA for income tax, and NOSI for social insurance contributions.
Payment method
All wages must be paid through bank transfer. Cash payroll is not compliant and creates problems for both tax reporting and social insurance contribution tracking.
Income tax withholding
Employers withhold income tax from employee salaries monthly and remit the amounts to the ETA. Egypt does not operate a Wage Protection System equivalent to the one used in Saudi Arabia or the UAE, but the ETA monitors payroll compliance through tax filings. Discrepancies between social insurance contributions and income tax filings draw scrutiny.
Salary denomination
All contracts must state salaries in EGP. If the commercial arrangement involves payment in a foreign currency, the contract still needs to specify the EGP equivalent, and the employer must ensure the amount always meets the minimum wage floor.
Penalties for non-compliance
Egyptian authorities have clear enforcement mechanisms for employers who fail to meet their obligations. The consequences extend beyond fines and can affect an employer’s ability to hire.
| Violation | Potential consequence |
|---|---|
| Late or missing NOSI registration | Financial fines per employee affected |
| Failure to cancel work permit within 15 days | Ongoing liability; restrictions on future permit applications |
| Wrongful termination | Labour Court reinstatement order or compensation award |
| Failure to pay final settlement within 15 days | Additional claims at Labour Court |
| Non-payment of overtime or public holiday premiums | Labour Court compensation claim |
| Failure to register contracts with Labour Office | Contract validity disputes; enforcement limitations |
Penalties for NOSI violations are calculated per employee and per month of non-compliance, so the longer the gap, the larger the liability. Labour Court compensation awards for wrongful termination carry a statutory minimum of two months’ salary per year of service, which accumulates quickly for long-tenured employees.
How to build a compliant HR operation in egypt
Getting compliant in Egypt is not a one-time task. The framework requires ongoing attention across payroll, social insurance, leave tracking, and permit renewals.
Start with contracts
Every hire should begin with a properly drafted Arabic employment contract that includes all mandatory clauses, reflects the exact EGP salary, and gets registered with the Labour Office. Do this before the employee starts work, not after.
Register with nosi on day one
The 15-day registration window is short. Build a process that triggers NOSI registration as part of onboarding, not as an afterthought. The same applies to work permit applications for foreign hires, which need to be in process before the employee starts.
Update leave policies for 2025
If your company has a policy document referencing 90-day maternity leave or a flat sick pay rate, update it now. Labour Law No. 14 of 2025 is in effect, and applying the old rules to employees hired after September 1, 2025, creates liability.
Track leave carefully
Annual leave accumulation, sick leave rolling periods, and the minimum 6 consecutive days requirement all need accurate records. Disputes about leave entitlement are common in Labour Court proceedings, and the burden of proof sits with the employer.
Use an Employer of Record (EOR) for fast, compliant hiring
Foreign companies that do not have a legal entity in Egypt cannot hire directly. An Employer of Record becomes the legal employer in Egypt, handling contracts, NOSI registration, payroll tax, and compliance while the foreign company retains day-to-day management of the employee. This removes the need to establish a local entity and ensures obligations are met from day one.
Simplify egypt HR compliance with RemotePass
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Book a RemotePass demo to see how it works.
FAQs
Does Egyptian employment law apply to remote employees working from Egypt for a foreign company?
Yes. If an employee is based in Egypt and performs work there, Egyptian labour law applies regardless of where the employer is registered. Foreign companies with remote workers in Egypt need to comply with all local employment, social insurance, and tax obligations.
Can a foreign company hire in Egypt without a local entity?
Not directly. Egyptian law requires the employer to have a legal presence in Egypt to enter into employment contracts and register with NOSI. Foreign companies typically use an Employer of Record to hire compliantly without setting up their own entity.
What happens if a fixed-term contract is renewed multiple times?
Repeatedly renewing a fixed-term contract for the same role and the same employee creates a legal risk that the contract will be treated as an indefinite one. Employers should review the purpose of fixed-term arrangements before renewing and consider whether the role is genuinely temporary.
Is Arabic required on employment contracts, or can contracts be in English only?
Arabic is the controlling language. English-only contracts are not enforceable in Egyptian Labour Courts. Bilingual contracts are standard practice, but the Arabic version governs in any dispute.
How long does the work permit process take for foreign employees?
Processing times vary depending on the role, the applicant’s nationality, and current Ministry of Manpower workload. Allow several weeks as a minimum. The employee should not start work until the permit is issued, as employing someone without a valid work permit exposes the employer to penalties.
What is the minimum notice period for terminating an employee in Egypt?
Both parties on indefinite contracts must give 90 days’ written notice. Terminating without this notice on a without-cause basis triggers the unlawful dismissal compensation rule of a minimum of two months’ salary per year of service.
Are Egyptian social insurance contributions mandatory for expat employees?
Yes. All employees working in Egypt under a local employment contract must be registered with NOSI, including expatriates. The standard contribution rates apply: 11% from the employee and 18.75% from the employer, calculated on the insured salary within the applicable ceiling.
