Egypt Labor Law and Employment Policy Overview

Employment Law Overview

• Key Legislation:
  • Egyptian Labor Law No. 12 (2003)
  • Social Insurance Law No. 79 (1975)
• Legal Characteristics:
  • Aims to protect employee rights and promote job stability
  • Sets minimum standards for working hours, leave, wages, and social insurance

Employment Contract Requirements

• Contract Types:
  • Fixed-term contracts
  • Indefinite-term contracts
  • Task-based contracts
• Contractual Provisions:
  • Must be written in Arabic
  • Must include terms on job description, remuneration, working hours, leave, and termination conditions
• Language and Currency:
  • Arabic
  • Egyptian Pound (EGP)

Working Hours Regulations

• Standard Working Hours: 40 hours per week, 8 hours per day
• Rest Days and Breaks: 24 hours of rest per week, 1 hour of break per day

Leave Policy

• Annual Leave:
  • Employees under 50: 21 days per year after 1 year of continuous service
  • Employees over 50 or with 10+ years of service: 30 days per year
• Public Holidays: 18
• Special Leave:
  • Sick Leave: 1 year of paid sick leave every 3 years, covered by the social security system
  • Maternity Leave: Female employees are entitled to 90 days of paid maternity leave
  • Paternity Leave: None

Employee Severance and Contract Termination

• Notice Period:
  • Less than 10 years of service: 2 months
  • 10+ years of service: 3 months
• Severance Pay: No statutory severance pay, but employers may provide it voluntarily
• Unfair Dismissal Protection: Employees dismissed for illegal reasons, incompetence, or total disability may file a complaint with the court

Tax Laws

• Personal Income Tax:

  • Salary Range (EGP)	Tax Rate
    0 - 30,000	0%
    30,000 - 45,000	10%
    45,000 - 60,000	15%
    60,000 - 200,000	20%
    200,000 - 400,000	22.5%
    400,000+	25%

• Social Insurance Contributions:

  • Employee: 11% or 14%
  • Employer: 24% or 26%

Health Insurance

• Insurance Policy: Egypt provides universal healthcare
• Coverage: Basic medical services

Compensation and Benefits

• Minimum Wage: EGP 3,000 per month
• Compensation Structure:
  • Basic salary
  • Bonuses (not mandatory)

Work Permits and Visas

• Permit Requirements:
  • Foreign employees require a work permit and residency permit
• Application Process:
  • Employer applies to the Ministry of Manpower and Immigration

Confidentiality and Non-Compete Clauses

• Enforceability: Enforceable, but must be reasonable and not unduly restrict employee's employment opportunities
• Common Provisions:
  • Confidentiality of information
  • Non-competition restrictions

Training and Development

• Legal Requirements: None
• Government Support: Government-funded training programs

Workplace Diversity and Inclusion

• Legal Requirements: None
• Enforcement Measures: None

Remote Work Policy

• Legal Framework: None
• Tax and Insurance Implications: None

Authoritative Website Addresses

• Egyptian Ministry of Manpower and Immigration: https://www.manpower.gov.eg/