Egypt has ushered in a new era of labor regulation with the introduction of its long-awaited Labor Law reform. The legislation reflects the country’s commitment to strengthening employment rights, encouraging workplace inclusivity, and fostering a fair and balanced relationship between employers and employees.
This reform comes at a pivotal time as Egypt seeks to align more closely with international labor standards and boost investor confidence through legal transparency and regulatory modernization.
1. Standardization of Working Hours and Compensation
The new law sets a clear framework for working hours and overtime:
- Working hours are capped at 8 hours per day and 48 hours per week, exclusive of meal and rest breaks.
- Overtime pay is fixed at 1.5x the regular wage. If performed on weekends or official holidays, the rate increases to double pay.
- Night work, defined as work between 10 PM and 6 AM, entitles the employee to an additional 35% of the basic hourly wage.
This regulation reinforces the employee’s right to rest and fair remuneration, while also compelling employers to optimize work schedules and manage costs efficiently.
2. Strengthening Family and Parental Rights
A significant advancement in the new law is its progressive stance on parental leave:
- Maternity Leave: Female employees are entitled to four months of paid leave per childbirth, including a minimum of 45 days post-delivery. This right may be exercised up to three times during employment.
- Paternity Leave: A new addition grants fathers one paid day off upon the birth of a child.
- Childcare Leave: In establishments with 25 or more workers, women may take up to two years of unpaid leave to care for children, up to three times throughout their career.
- Breastfeeding breaks are guaranteed twice daily during the first 24 months after childbirth.
These changes signal a move toward gender equity and support for working parents, reflecting Egypt’s efforts to promote women’s participation in the workforce.
3. Ending Arbitrary Dismissals
The new law decisively addresses arbitrary termination, providing that:
- Any unjustified dismissal entitles the employee to compensation equal to two months of full wages for every year of service.
- Employers may not terminate employment during pregnancy or maternity leave.
- Disciplinary measures and dismissal procedures must follow due process, emphasizing transparency and accountability.
These provisions are designed to protect employees from exploitation and ensure fair resolution of employment disputes.
4. Minimum Wage and Social Insurance Updates
In a landmark move, Egypt’s government has increased the minimum wage for public and private sector workers to EGP 7,000/month, effective July 2025. This adjustment is part of a broader strategy to address inflation and improve living standards.
The law also revises social insurance contributions, aligning them with wage brackets ranging from EGP 1,400 to EGP 9,400/month. Employers must ensure that all employees are registered and that contributions are remitted accurately, or face penalties.
5. Inclusivity and Anti-Harassment Measures
To promote a safe and equitable working environment:
- Workers with disabilities are entitled to 45 days of annual leave, surpassing the standard 21 days.
- The law mandates employers to create and enforce anti-harassment policies. Harassment is broadly defined to include any unwanted physical, verbal, or non-verbal conduct that causes distress or offense, particularly in a gender-based context.
These measures reflect the growing emphasis on workplace well-being and psychological safety.
6. Employment Contracts and Legal Clarity
- All contracts must be written in Arabic and issued in three original copies (one each for the employer, employee, and the Social Insurance Office).
- Fixed-term contracts that are renewed beyond six years automatically convert into indefinite-term contracts.
These stipulations enhance job security while ensuring documentation is consistent and legally binding.
Conclusion: A New Chapter in Egyptian Labor Relations
Egypt’s new Labour Law marks a decisive step toward building a modern, rights-based employment framework. By prioritizing fairness, transparency, and inclusivity, the reform not only benefits employees but also fosters a more stable and productive labor market.
For employers, this is the moment to:
- Review and update employment contracts,
- Revise HR policies to comply with the new law, and
- Educate management teams about their legal responsibilities under the new framework.
Legal practitioners, HR professionals, and business leaders must work together to ensure a smooth transition and long-term compliance. This reform is not merely a legal update—it is a cultural shift that aligns Egypt with global labor standards and underscores its readiness to participate in a modern, competitive economy.