Key provisions of Egypt's new Labour Law

If you are an employer or an employee in the private sector, a major shift is coming your way. Labour Law No. 14 of 2025 was issued to replace Law No. 12 of 2003, and was published in the Official Gazette in May 2025, entering into force ninety days after publication ^[1]. Below is a quick summary of the most significant changes.

Short Answer

The key provisions of Egypt's new Labour Law reshape the relationship between workers and employers across several fundamental areas: the establishment of specialised labour courts, the codification of fixed-term contracts with a four-year ceiling, the extension of maternity leave to four months, the linking of the annual increment to a minimum of 3% of the insurance-based wage, and the mandatory electronic registration of contracts through the Ministry of Manpower's platform. The Law also regulates remote work and irregular employment for the first time, and tightens the conditions for unfair dismissal.

Labour Courts and the Annual Increment

The most distinctive feature of Egypt's new Labour Law is the creation of specialised labour courts within the courts of first instance, with exclusive jurisdiction over disputes between workers and employers, operating under simplified procedures and shortened timelines. Disputes are expected to be resolved far more quickly than was previously the case before the part-time labour tribunals.

On the wage side, the Law obliges employers to grant workers an annual periodic increment of not less than 3% of the contributory wage on which social insurance contributions are calculated ^[1][2]. This is the minimum threshold; the National Wages Council may raise it.

Note: The increment is calculated on the contributory wage, not on the total gross wage. The difference can be significant if your actual salary exceeds the contribution ceiling.

If an employer delays payment of wages without justification, the worker may apply directly to the labour court for relief.

Contracts, Leave, and Dismissal

Fixed-term contracts now have a clear ceiling: a maximum of four years. If the worker continues in employment after the term expires, the contract automatically converts to an open-ended contract. This ends a long-standing dispute that had been exploited to renew contracts for unreasonably extended periods.

Maternity leave has been raised to four months on full pay, up from 90 days under the previous law, and may be taken up to three times during the entire period of service. Paternity leave has been introduced for the first time: one paid day upon the birth of the employee's child.

Annual leave remains 21 days for a worker who has completed one year of service, rising to 30 days for those with more than ten years of service or who have reached the age of fifty.

Regarding dismissal, an employer may not terminate an open-ended contract without a legitimate reason and without first referring the matter to the labour court to examine the validity of that reason. Unfair dismissal entitles the worker to compensation of not less than two months' comprehensive wage for each year of service ^[1].

Remote Work and Irregular Employment

For the first time in Egyptian legislation, the new Law expressly regulates remote work, granting remote workers the same rights as on-site workers with respect to wages, leave, and social insurance. Employers are required to provide the necessary work tools or to compensate workers for internet and electricity costs on agreed terms.

The Law also dedicates a chapter to irregular, seasonal, and casual labour, and establishes a fund for their welfare, financed by nominal contributions and state subsidies.

One practical provision that many overlook: employers are required to register contracts electronically through the Ministry of Manpower's platform within a specified period from the commencement of the employment relationship; failure to do so results in the contract being deemed to exist on the worker's stated terms.

When the Law Takes Effect and What Happens to Existing Contracts

The Law takes effect ninety days after its publication in the Official Gazette in May 2025, meaning it has been in force since mid-August 2025. Contracts in existence before the effective date remain subject to its provisions with regard to rights and obligations arising after that date, without prejudice to vested rights accrued beforehand.

The detailed executive regulations have been issued progressively by the Ministry of Manpower, and some remain pending finalisation. Monitor the relevant Minister's decisions before taking any sensitive administrative action such as dismissal or contract amendment.

For further details on specific rights, see Frequently Asked Questions on Labour Law.

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