Primary source: Labour Law No. 12 of 2003 (the "Old Law"), currently in force, to be superseded by Labour Law No. 14 of 2025 once its delayed effective date arrives (the New Law was passed in April 2025; the Executive Regulations and grace periods are being issued progressively). Social insurance: Social Insurance and Pensions Law No. 148 of 2019. Income tax: Income Tax Law No. 91 of 2005, as amended (most recently by Law No. 30 of 2023 and 2024 wage-bracket revisions). Regulators: Ministry of Labour (Manpower), National Organization for Social Insurance (NOSI), Egyptian Tax Authority (ETA).

ZenHR maintains parallel configurations for Law 12/2003 and Law 14/2025. Confirm with counsel which regime applies before configuring payroll and leave policies.

1. Scope and definitions (Articles 1–5 of Law 12/2003)

• Article 1: defines "worker", "employer", "wage" (everything received by the worker in cash or kind in exchange for work), "comprehensive wage" (basic + variable + allowances) and "basic wage" (the wage stated in the contract before allowances and overtime).

• Article 4: the law applies to all workers in the private sector except domestic workers (under Civil Code), family members of the employer, and casual workers under separate decrees.

• Article 5: in case of dispute over a contract term, the interpretation favorable to the worker prevails.

2. Recruitment, contracts and probation (Articles 31–43)

• Article 31: contracts may be fixed-term or indefinite; for foreigners, fixed-term is mandatory.

• Article 32: the contract must be in writing in Arabic, in three copies (employer, worker, social insurance office). If not in writing, the worker may prove the relationship by any means; the worker may demand a written contract at any time.

• Article 33: probation must be expressly stated in the contract; maximum 3 months; one probation per worker per employer. Either party may terminate during probation.

• Article 36: a fixed-term contract continuing to be performed after expiry is deemed renewed for an indefinite term.

• Article 38: a fixed-term contract longer than 5 years allows the worker to terminate after 5 years with 3 months' notice.

• New Law 14/2025: introduces electronic contracts, broader recognition of fixed-term renewals, and a clearer cap on consecutive fixed-term renewals (auto-conversion after multiple renewals).

3. Working hours and rest (Articles 80–86)

• Article 80: max 8 hours/day or 48 hours/week, exclusive of meal and rest periods. Total daily presence (work + breaks) ≤ 10 hours.

• Article 81: at least 1 hour of break after a maximum of 5 continuous hours of work; the worker may not work more than 6 consecutive hours.

• Article 82: workers in continuous-shift industries get rest periods during shifts counted as work.

• Article 84: hours may be reduced for hazardous work; the Ministry publishes a list of such occupations.

• Article 85: weekly rest = 24 consecutive hours after at most 6 working days, fully paid. Friday by default; replacement permitted with worker's consent.

• Article 86: women and juveniles have additional protections (see Section 11).

4. Overtime (Article 85)

• Overtime = hourly basic wage + 35% premium for day hours.

• + 70% premium for night hours.

• + 100% premium for work on weekly rest days and official holidays, plus a compensatory day off.

• Maximum: 2 hours/day, 10 hours/week, 50 hours/month.

• Senior management and confidential roles are excluded.

5. Annual leave (Article 47, Law 12/2003)

• 15 days during the first year of service (pro-rated; full entitlement begins after 6 months).

• 21 days/year after one full year.

• 30 days/year after 10 years with the same or different employer, OR for workers aged 50+, OR for workers with disabilities.

• + 7 additional days/year for hazardous-work occupations.

• Weekly rest, public holidays and casual leave falling within annual leave are not counted.

• Leave is taken in the year it accrues; carry-over up to 50% with written consent. On termination, unused balance is paid out on comprehensive wage.

• New Law 14/2025: extends casual leave to 7 days/year (max 2 days at a time), up from 6.

6. Sick leave (Article 54, Social Insurance Law 148/2019)

• Maximum 180 days/year on medical certificate.

• First 90 days: 75% of insured wage, paid by NOSI/social insurance.

• Next 90 days: 85% of insured wage.

• The employer reports sick leave to social insurance; NOSI reimburses the wage portion. The worker may convert sick leave to annual leave (if balance available) for full pay.

• Tuberculosis, cancer, mental illness and similar long-term diseases: full pay until recovery or permanent disability.

7. Maternity, paternity and family leaves (Articles 91–94)

• Article 91: maternity leave = 90 days (3 months) at full pay, including pre- and post-natal; required minimum 45 days post-delivery. Available a maximum of 3 times during the worker's service with all employers; requires 10 months of social-insurance contributions.

• Article 93: nursing breaks — 2 daily breaks of 30 minutes each, or one combined hour. Paid and counted as work. Valid for 24 months from delivery.

• Article 94: unpaid childcare leave up to 2 years per child, up to 3 times during service, available in firms with 50+ employees.

• Pilgrimage leave: 1 month paid, once during service, after 5 continuous years (Article 53).

• Bereavement and family events: not codified centrally; collective agreements and internal bylaws typically provide 3 days. New Law 14/2025 introduces a national bereavement entitlement.

8. Public holidays (Article 52)

Cabinet decree annually; cap = 13 days/year paid. Typical list: Coptic Christmas (7 Jan), Revolution Day (25 Jan), Sinai Liberation (25 Apr), Sham El-Nessim (movable), Labour Day (1 May), 30 June Anniversary, Revolution Day (23 Jul), Armed Forces Day (6 Oct), Eid Al-Fitr (3 days), Arafat Day & Eid Al-Adha (4 days), Hijri New Year, Prophet's Birthday. If a worker is required to work on a public holiday, pay = double wage + a compensating day.

9. Wages and Payroll (Articles 34–43)

• Article 34: wages paid in EGP at the workplace during working hours, at least monthly; weekly-paid no more than 1 week in arrears; piece-rate no more than 2 weeks in arrears.

• Article 38: wage cannot be reduced unilaterally.

• Article 41: deductions limited to 25% of the wage for ordinary debts; up to 50% for alimony, with alimony taking priority.

• Article 42: disciplinary fines cannot exceed 5 days' wage in one month for any one offence; cumulative monthly fines cap = 5 days' wage.

• Minimum wage: National Wages Council sets the private-sector minimum (currently EGP 7,000/month, effective March 2025); periodic upward reviews.

10. Social Insurance — Law No. 148 of 2019

Compulsory for all employees. Contributions on the insured wage (single bracket since Jan 2020, gradually increasing each year until 2027):

• Employee: 11% of insured wage.

• Employer: 18.75% of insured wage.

• Total: 29.75% covering old-age, disability, death, work injury, sickness and unemployment.

Insured wage = comprehensive wage, with minimum and maximum thresholds revised yearly (2025: minimum ~EGP 2,300; maximum ~EGP 14,500). ZenHR generates the monthly Form 1/2 (Estamarat) for NOSI submission.

11. Income Tax (Law 91/2005, as amended)

Progressive PAYE: 0% on the first EGP 40,000/year (personal exemption EGP 20,000 + employment exemption EGP 20,000), 10% / 15% / 20% / 22.5% / 25% / 27.5% on subsequent brackets (2024 schedule). The 27.5% top bracket starts above EGP 1,200,000/year. Employer deducts and remits monthly within 15 days; annual reconciliation Form 4 filed with ETA. End-of-year settlement adjusts under-/over-withholding.

12. End-of-Service / Pension

Under Law 148/2019, the social insurance system replaces traditional end-of-service indemnity. On retirement (age 60, rising to 65 by 2040), the pension is calculated on average lifetime insured wage. For uninsured workers (rare exceptions), Article 122 of Law 12/2003 provides indemnity = one month's wage per year of service.

13. Termination and notice (Articles 110–122)

• Article 110: notice for an indefinite contract = 2 months for service < 10 years; 3 months for service ≥ 10 years. Notice may be in writing; the worker may use one paid day per week to job-search.

• Article 69: 9 grounds for summary dismissal: false identity/qualifications; gross error causing serious loss; repeated wilful violation of safety rules after warning; more than 20 non-consecutive or 10 consecutive days of absence/year (after a warning issued after 10 non-consecutive or 5 consecutive days); divulging work secrets; final criminal conviction; intoxication; assault; competing with the employer.

• Article 122: arbitrary dismissal — if a tripartite committee (Labour Office + worker representative + employer representative) determines the dismissal is unjustified, compensation = at least 2 months' comprehensive wage per year of service.

• Article 199 and following: collective dismissals require Ministry of Labour approval and consultation with worker representatives.

• Article 38: a fixed-term contract terminated early by the employer without cause triggers compensation = remaining wages to end of term.

14. Disciplinary actions (Articles 60–69)

The internal work regulation (mandatory for firms with 10+ workers) lists penalties: warning, written reprimand, fine, deduction (max 5 days/month), suspension with deduction, denial of promotion or raise, termination per Article 69. The worker must be heard in writing; the penalty must follow within 15 days of investigation completion. Records of fines feed a workers' welfare fund.

15. Female workers and minors (Articles 88–105)

• Articles 88–90: women may work in all fields; night work prohibited between 7pm and 7am, with sectoral exceptions (medical, hospitality, aviation, broadcasting, IT).

• Articles 91–94: maternity, nursing, childcare — covered above.

• Articles 97–100: minimum working age 15 for light work; 18 for hazardous work or night shifts. Juveniles cannot work more than 6 hours/day with 1 hour break per 4 hours; no overtime; no work on holidays or weekly rest.

• Articles 101–105: special-needs workers — 5% reservation in firms with 20+ workers; protected from discrimination.

16. Foreign workers (Articles 27–30)

Foreign workers require a work permit from the Ministry of Labour. The total share of foreigners in any establishment is capped at 10% of total workforce unless the Ministry grants a waiver. Permit fees vary by nationality and specialization; some occupations (tourist guide, customs broker, etc.) are closed to foreigners. ZenHR tracks permit expiry and foreign-worker ratio per branch.

17. Health, safety and work injury (Articles 202–217)

The employer must provide a safe workplace, PPE, training, and on-site first aid. Establishments with 50+ workers must have a safety committee. Work injuries are covered by social insurance: full wage during incapacity for 6 months; thereafter NOSI sickness/disability rules; permanent disability lump sum and pension; survivor benefits.

18. Dispute resolution (Articles 70–71, 196–212)

Individual disputes: amicable settlement at the Labour Office within 15 days; if unresolved, the dispute is referred to the Labour Court (specialized chamber of the Court of First Instance). Decisions on dismissal-related compensation are issued within 60 days. Collective disputes: tripartite committee → arbitration → strikes (only after legal notice and only in private sector, with restrictions on essential services). Limitation period = 1 year from termination for wage and end-of-service claims; 3 years for general labour claims.

19. New Law 14/2025 — key forthcoming changes

• Mandatory electronic contracts and digital signatures.

• Casual leave extended from 6 to 7 days/year (max 2 days at a time).

• Stronger limits on consecutive fixed-term renewals.

• Expanded paternity leave provisions and codified bereavement leave.

• Updated rules for remote work, gig and platform work.

• Strengthened dispute-resolution timelines and specialized labour courts.

ZenHR's Egypt tenants will be migrated to a Law 14/2025 template at the Ministerial effective date; transitional payroll and leave accruals are handled via a configuration switch.

References (official sources)

• Ministry of Labour (Manpower): manpower.gov.eg

• National Organization for Social Insurance (NOSI): nosi.gov.eg

• Egyptian Tax Authority (ETA): eta.gov.eg

• Official Gazette: manshurat.org