Egypt has enacted the New Labor Law of 2025 — a milestone in protecting workers’ rights, promoting fair employment, and aligning national regulations with international standards.
The Law was published in the Official Gazette on 3 May 2025.
Job Security and Fair Termination
The new law prohibits unfair dismissal, allowing termination only through a final judicial decision, reinforcing stability and preventing arbitrary job loss.
Empowering Women in the Workplace
Women receive stronger protection and extended maternity rights, including four months’ leave, reduced working hours, and protection against dismissal due to pregnancy or marriage. (Article 54)
Safeguarding Informal and Irregular Workers
A new Emergency Support Fund ensures financial and health protection for Egypt’s informal workers, supported by a national registration system. (Article 78)
Regulating Modern Forms of Employment
For the first time, the law addresses new work models such as remote work, platform work based jobs, flexible hours, and job sharing. (Article 96)
Annual Leave Benefits
Employees enjoy annual leave as follows:
- 15 days for the first year of work.
- 21 days starting from the second year.
- 30 days for more than 10 years in service.
- Additional days for challenging work locations. )Article 124)
Fast-Track Labor Dispute Resolution
In accordance with article 150:
Specialized labor courts will resolve termination disputes within three months, ensuring faster justice and reduced backlog.
Mandatory Annual Salary Increase
In accordance with article 12:
A minimum 3% annual raise of the employee’s insurable salary is guaranteed, while allowing employers to offer more based on capacity.
Zero Tolerance for Harassment and Bullying
In accordance with article 4:
The law introduces strict penalties for workplace harassment, promoting safety, dignity, and respect across all professions.
Balanced Working Hours and Rest Rights
In accordance with article 117:
Employees are limited to 8 hours per day or 48 per week, with mandatory rest periods and at least one full weekly day off.
Commitment to Training and Development
Employers must dedicate 0.25% of payroll to staff training, reinforcing skill development and productivity growth.
Employment Contracts
Contracts must be issued in four copies, ensuring clear documentation and transparency for workers, employers, and authorities.
End-of-Service Benefits Secured
In accordance with article 172:
Upon retirement, employees receive end-of-service gratuity based on their years of service: half a month’s salary for each of the first five years, and a full month’s salary for each subsequent year, unless covered under social insurance schemes.
Digital Transformation of Labor Practices
The law formally recognizes digital contracts, payroll, and medical records, marking a shift toward electronic governance.
Electronic Recordkeeping Permitted
In accordance with article 92:
Employers may now choose between paper or digital record systems, simplifying compliance management.
Comprehensive Sick Leave Provisions
In accordance with article 131:
Industrial workers are entitled to sick leave every three years, with graded compensation — the first three months at full pay, followed by six months at 85%, and three months at 75% if recovery is expected.
Fair and Timely Disciplinary Actions
In accordance with article 138:
Disciplinary measures must relate directly to workplace conduct and be imposed within 30 days of investigation closure. The Penalties regulation must include violations and penalties in accordance with article 139 of this law.
Resignation Procedures Simplified
In accordance with article 167:
Resignations take effect only upon employer acceptance within ten days — otherwise deemed approved automatically. The employee may withdraw his resignation within 10 days.
Temporary Suspension with Safeguards
In accordance with article 146:
Employers may suspend employees with full pay for up to 60 days, in certain cases, such as internal investigations or criminal accusations. The employee has the right to appeal the suspension decision within 3 days from the date of notification. The judge will issue a decision on the next day after the submission. The employer may request the court to extend the suspension with half of the salary, and if the court does not respond, the judge will continue with the full salary payment.
Fair Overtime and Holiday Compensation
In accordance with article 121:
Employees working extra hours are entitled to premium pay. Whether individual or collective, the worker must receive no less than their regular wage plus 35% for each daytime overtime hour and 70% for each nighttime overtime hour, calculated based on their original hourly wage.
If the work takes place on a rest day, the worker is entitled to an additional day’s wage as compensation, and the employer must grant the worker an alternative rest day within the following week.
In all cases, the total time a worker spends at the workplace must not exceed twelve hours, except under exceptional circumstances justified by the need for additional work or the time required to complete a task.
Transparent Wage Records and Deductions
In accordance with article 105:
Employers must maintain detailed wage logs and ensure lawful deductions that never breach minimum wage protections.
Protecting Young Workers
In accordance with article 62:
The minimum working age is now 15, with limited exceptions for internships at 14, provided education continues.
Accountability and Penalties for Violations
In accordance with article 297:
Violations attract fines from EGP 5,000 up to EGP 20,000, doubling for repeat offenses to ensure strict compliance.
Regulating Wages and Deductions
The law caps wage deductions and mandates fair pay timing, protecting employees’ financial stability.
1. According to Article (107), the wage is determined based on the individual employment contract, the collective labor agreement, or the approved company regulations. If the wage is not specified by any of these means, the worker shall be entitled to the equivalent wage if available, or it shall be assessed based on the custom of the profession in which the worker is employed. If no such custom exists, the summary judge at the competent labor court shall determine the wage.
2. According to Article (108), if the wage is based on production or commission, the worker must receive a weekly payment on account proportionate to the amount of work completed.
3. Also under Article (108), if the employment relationship ends for any reason, the employer must pay the worker’s wages within no more than seven days from the date of the claim.
4. In all cases, the worker’s earnings must not be less than the minimum wage, and it is prohibited to withhold the worker’s wage or any part of it without legal justification.
5. The calculation of the average daily wage for production workers or workers receiving a basic wage plus commission or percentage shall be based on the average amount received by the worker during actual working days in the previous calendar year, or for the period worked if less than one year, divided by the number of actual working days in that same period. (Article 109)
6. According to Article (113), the employer may not deduct more than 10% of the worker’s wage to repay any loan granted during the contract period, and the employer is not allowed to charge any interest on such loans. This also applies to wages paid in advance.
7. According to the procedures for litigation in personal status matters under Law No. 1 of 2000, it is not permitted to deduct, seize, or assign the worker’s due wage to repay any debt beyond 25% of that wage. This percentage may be raised to 50% in the case of alimony (spousal/child support) debts. (Article 114)
8. According to the Social Insurance and Pensions Law, income tax, social insurance contributions, and any due amounts may be deducted from the worker’s wage. Also, any loans granted by the employer may be deducted within the legal percentage limits. (Also Article 114)
Clear Rules for Termination and Compensation
1. If the employment contract is of indefinite duration, either party may terminate it, provided that written notice is given to the other party within three months. (Article 156)
2. A notice may not be given to the employee during their leave, and the notice period shall not begin until the day following the end of the leave. If the employee is on sick leave during the notice period, the notice period is suspended and will resume only on the day following the end of the sick leave. (Article 159)
3. If the notice of termination is given by the employer, the employee has the right to take one day off per week or eight hours during the week to search for another job. (Article 162)
4. If the employer terminates an indefinite-term contract without a valid reason, the employee has the right to claim compensation not less than two months’ wage for each year of service. (Article 165)
5. The employment contract does not terminate upon the employer’s death, unless the contract was concluded based on personal considerations related to the employer. (Article 169)
6. If the employee dies while in service, the employer must pay the family an amount equal to two months’ wages based on the last wage received, to cover funeral expenses. This amount is paid to the spouse, or if not available, to the eldest child, or to any person who proves they covered the funeral expenses — with a minimum of 1,000 Egyptian pounds.
In addition, a grant equal to the employee’s wage for the month of death and the two following months must be paid, along with the wage for the days worked in the month of death. This is paid in accordance with the provisions of the Social Insurance and Pensions Law.
The employer is also obligated to cover the costs of preparing and transporting the body to either the place from which the employee was recruited, or another location requested by the family. (Article 169)
Retirement Age and Post-Service Benefits
Retirement remains at 60 years, with entitlement to full end-of-service benefits and protection from illness-related dismissal.
1. The employer may terminate the contract once the worker reaches the age of sixty, unless the contract is for a fixed term that extends beyond the age of sixty. In that case, the contract shall only end upon the expiration of its term. (Article 171)
2. The end-of-service gratuity after retirement is calculated as half a month’s wage for each of the first five years of service, and one month’s wage for each year thereafter. The gratuity is calculated based on the last wage received. (Article 172)
3. The employer is not entitled to terminate the worker’s contract due to illness unless the worker has exhausted their sick leave and any remaining annual leave, in accordance with the Social Insurance and Pensions Law. The worker must be notified at least fifteen days in advance. (Article 173)
Collective Agreements and Worker Representation
Collective labor agreements may last up to three years, with mandatory renegotiation and Arabic-language requirements.
1. if duration of a collective agreement exceeds three years, the parties must re-negotiate the agreement at least three months before its expiry.
If they fail to reach an agreement, the matter shall be referred to the competent administrative authority to take appropriate action.
If the competent administrative authority refuses to register the agreement, either party may resort to the summary judge in the jurisdiction where the workplace is located.
The agreement must be written in Arabic. It may also be written in English, but only the Arabic version shall be legally recognized. (Article 199)
2. The competent administrative authority shall set a hearing date to resolve the dispute within a period not exceeding five days from the date the request is submitted.
The parties to the dispute shall be notified at least three days prior to the scheduled date. (Article 215)
New Mediation and Arbitration Center
A specialized dispute resolution center under the competent minister will handle labor mediation and arbitration efficiently. (Article 218)
Either party to the dispute, or both, have the right within fifteen days to request the Mediation and Arbitration Center to replace the mediator once.
If the other party refuses the replacement, the Mediation and Arbitration Center must decide on the request within no more than two days.
If a new mediator is appointed, the duration of their work shall be calculated from the date they assume the task. (Article 224)
Conclusion: A Modern Framework for Fair Work
The 2025 Labor Law marks a turning point for Egypt’s labor market — balancing protection and flexibility while advancing national development goals.
Seek Legal Counsel
For guidance on Egypt’s 2025 Labor Law, consult Dr. Kamel El Shendidy and our expert team at Habib Al Mulla & Partners to protect your rights and navigate employment matters confidently.