Egypt - New Labor Law Entering into Effect
3 September 2025 – As of 1 September 2025, the new Labor Law No. 14 of 2025 is in effect. This law, published on 3 May 2025, nullifies the previous legislation, and introduces various amendments and new provisions that significantly impact workplace dynamics and governance.
The new law aims to ensure equality across all employment types, standardize compensation, encourage workforce sustainability, support work-life balance, strengthen women’s role within the professional landscape, guarantee compliance and administrative transparency, and foster workforce development.
Key Highlights
- Recognition and Equal Rights for Modern Work Arrangements:
The new legislation acknowledges diverse employment modes, extending equal legal rights to remote, hybrid, and job-splitting arrangements. - Minimum Wage and Increment Requirements:
Employers are now required to comply with established minimum wage levels and ensure an annual salary increment of at least 3% of the social insurance wage. - Notice Period: Parties involved in employment contracts exceeding 5 years or indefinite may terminate the contract, provided a notice period of three months is given.
- Updated Leave Policies: Initial employment now includes 15 days of annual leave, increasing to 21 days starting in the second year. Employees with special needs are entitled to 45 days of annual leave.
- Maternity and Workforce Provisions for Women: Female employees are entitled to a four-month paid maternity leave, capped at three instances during their tenure.
- Resignation Validation Requirement: Employees intending to resign must validate their resignation documents at the designated labor office prior to submission to their employer.
- Mandatory Employee Record Retention: Employee files must be maintained in either digital or physical form for a minimum duration of five years post-employment termination.
- Training Fund Contributions: Organizations with 30 or more employees must contribute 0.25% of the minimum social insurance wage (between EGP 10 and EGP 30 per employee) to the Public Training and Rehabilitation Fund. The contributions must be remitted on an annual basis.
- Emergency Fund for Irregular Employees: Companies employing irregular workers, such as those in the construction and building sectors, are mandated to contribute to the emergency fund. The contribution rates are contingent upon the specific nature and structure of the business, offering financial support for this workforce segment.
Notice
This alert has been written in general terms and does not constitute any form of advice or recommendation by Deloitte and, therefore, cannot be relied on to cover specific situations; application of the principles set out will depend upon the particular circumstances involved and we highly recommend that you obtain professional advice before acting or refraining from acting on any of the contents of this publication. Deloitte accepts no duty of care or liability for any loss occasioned to any person acting or refraining from action due to any material in this publication.
Deloitte Middle East would be happy to help readers understand how to apply the principles set out in this publication to their specific circumstances.
