Employer of record (EOR) in Egypt
Egypt’s labour law in 2026: what a foreign employer needs to know
Egypt’s Labour Law 14 of 2025 has applied since 1 September 2025: Arabic contracts in four copies, a 3% yearly raise, four months’ maternity leave, three months’ resignation notice and 15 to 30 days of leave. The rules a foreign employer needs, in one table.
By GrowAxis team · · 3 min read
Egypt’s Labour Law 14 of 2025 has applied since 1 September 2025, and to labour disputes since 1 October 2025. It replaced the 2003 law, and it changes what a foreign company pays and promises when it employs people in Egypt, directly or through an employer of record. This guide sets out the rules in one table, then the payroll figures for 2026.
The rules, in one table
| Topic | The rule |
|---|---|
| Contract | In Arabic, in four copies: for the employer, the employee, the social insurance office and the labour authority. A non-national who does not speak Arabic may have it in Arabic and their own language. |
| Type of contract | Presumed permanent unless there is a reason to fix its term. |
| Probation | Up to three months, and only once with the same employer. |
| Working hours | Up to 8 hours a day and 48 a week; overtime is paid at 35% extra by day and 70% by night. |
| Annual leave | 15 working days in the first year, 21 from the second, 30 after ten full years; 45 days for employees with a disability. |
| Maternity leave | Four months, paid, with no minimum service, up to three times while employed. |
| Paternity leave | A day of leave on the child’s birth, up to three times, outside annual leave. |
| Yearly raise | At least 3% of the insured salary, with temporary exemptions for eligible employers. |
| Resignation | Three months’ notice, up from two. The employer answers within 10 days and the labour authority ratifies it. |
| Ending a fixed-term contract | When the employer ends it, one month’s salary for each year of service. |
| Work patterns | Remote, part-time, flexible and job-sharing work are recognised, with the same basic protections. |
| Training fund | 0.25% of the minimum insured salary per employee, at least EGP 10 and at most EGP 30, replacing 1% of net profits. |
| Records | Employee files kept for five years after the job ends; an employee statement filed and updated every January. |
| Non-nationals | Employed only with the required work licence. |
The payroll figures for 2026
- Social insurance: the employer pays 18.75% and the employee 11% of the insurable wage, held between EGP 2,700 and EGP 16,700 a month in 2026.
- Salary tax: 0% to 27.5% on yearly pay after social insurance and an EGP 20,000 exemption, withheld by the employer.
- Minimum wage: EGP 7,000 a month in the private sector since 1 March 2025, now reviewed at least once a year.
- Data protection: since 1 November 2026 companies in Egypt that handle personal data need a licence under Law 151 of 2020.
Because social insurance is capped, it adds only a small share to higher salaries: EGP 20,000 gross pays EGP 15,708 net and costs the employer EGP 23,131 a month. The salary calculator works any salary through the 2026 rules.
Employing in Egypt without a company
A foreign company with no entity in Egypt needs a local employer. An employer of record employs the person it has found and applies the law, payroll and social insurance; an embedded team also finds, equips and manages the person. GrowAxis offers both, from Cairo.
About this guide
Sources: EY’s alert on Law 14 of 2025; Andersen Egypt’s summary and English translation of the law; ZenHR’s guide to Egypt’s labour law; Andersen and Mercans on social insurance; PwC’s Worldwide Tax Summaries; CMS on the data protection regulations; all checked on 3 November 2026. Written by the GrowAxis team, which employs people in Egypt. This is a summary for planning, not legal advice; confirm the details with an Egyptian lawyer.
FAQ
What is the new labour law in Egypt?
Law 14 of 2025, in force since 1 September 2025, which replaced Law 12 of 2003. It sets a yearly raise of at least 3% of the insured salary, four months’ maternity leave, three months’ resignation notice, Arabic contracts in four copies, and recognises remote, part-time and flexible work.
How many days of annual leave do employees get in Egypt?
15 working days in the first year, 21 from the second year, and 30 after ten full years of service. Employees with a disability get 45 days from the start.
What is the notice period in Egypt?
Three months for a resignation under the 2025 law, up from two. The employer answers a resignation within 10 days, and the labour authority ratifies it.
Can a foreign company employ people in Egypt without an entity?
Not directly. It needs a local employer: its own company in Egypt, or an employer of record that employs the person for it and applies the law, the payroll and social insurance.