End of Service Benefits in Egypt: What You're Owed

If you're leaving a job in Egypt — resigning, getting dismissed, or hitting retirement — you're probably wondering what hits your bank account on the way out. End of service pay in Egypt isn't a single formula. It depends on your contract type, how you leave, and how long you stayed.

Quick answer

In Egypt, end of service compensation under Labour Law No. 12 of 2003 depends on your contract. If you had an indefinite contract and the employer terminates without a valid reason, you're entitled to at least 2 months' gross wage per year of service as compensation ^[1]. For fixed-term contracts cut short without cause, the employer owes the wages remaining through the contract's end date (Art. 123) ^[2]. There's no automatic "gratuity" like the Gulf — Egypt runs on social insurance pensions plus any contractual end of service perks your employer agreed to.

How end of service works under Egyptian labour law

Egypt doesn't have a UAE-style gratuity system. People get this wrong constantly, especially expats arriving from Dubai or Riyadh.

Instead, Law No. 12 of 2003 (the Labour Law) gives you specific compensation only in specific situations. If your indefinite-term contract is terminated by the employer without a legitimate reason, Article 122 entitles you to compensation of no less than 2 months of comprehensive wage for each year of service ^[1]. "Comprehensive wage" means basic plus fixed allowances and regular bonuses — not just your base salary.

If you resign on your own, you generally don't get this compensation. You get your accrued leave balance, unpaid wages, and whatever your social insurance file holds. That's it.

Fixed-term contracts work differently. Article 123 says if the employer ends a fixed-term contract early without a lawful cause, they owe the wages the worker would have earned through the agreed end date ^[2]. So a 2-year contract terminated after 6 months means 18 months of wages — potentially a bigger hit than the indefinite-term formula.

What you're entitled to when you leave

Regardless of how you exit, these are typically owed:

• Unpaid wages through your last working day
• Accrued annual leave paid in cash — 21 days per year for your first 10 years, 30 days after (Art. 47) ^[3]
• Notice period pay if the employer skipped notice (2 months for staff under 10 years, 3 months for longer)
• Any contractual end of service bonus your employment agreement promised

Then the situation-specific pieces:

• Terminated without cause on indefinite contract → compensation per Art. 122 (minimum 2 months' wage per year)
• Fixed-term cut short → remaining contract wages per Art. 123
• Resigned → no compensation, just the standard payouts above
• Retired at 60 → social insurance pension from the National Organization for Social Insurance

Watch out: Employers sometimes try to label a termination as "resignation" to dodge Article 122 compensation. Don't sign a resignation letter they draft for you under pressure. If it's their decision to end things, make them put that in writing.

The social insurance piece most people forget

Your real "end of service fund" in Egypt is the social insurance system under Law No. 148 of 2019 ^[4]. Both you and your employer contribute monthly — roughly 11% from you and 18.75% from the employer, calculated on your insured wage.

When you hit retirement age (60) with at least 180 months of contributions, you draw a monthly pension. Leave the workforce earlier? Your contributions stay in the file. You can claim a lump-sum refund of your own share only under limited circumstances — travelling abroad permanently, certain disability cases, or death (paid to heirs).

Honestly, this is why checking your insurance record matters more than people realise. Request your istimara ta'minia (insurance statement) from the National Organization for Social Insurance before you leave any job. If the employer under-declared your wage — a common dodge to lower their contribution — your future pension suffers for it.

When the employer refuses to pay

If payment doesn't land, you file a complaint with the local Labour Office (Maktab al-'Amal) first. They'll call both sides for conciliation within about 21 days. No deal? The matter goes to the Labour Court, which handles disputes under expedited procedures per Law No. 12 of 2003.

Labour claims in Egypt have a 1-year limitation period from the date your contract ends (Art. 698 of the Civil Code as applied to labour claims) ^[5]. Miss that window and your end of service claim is dead. File early — courts are moving faster since the 2024 reforms but a straightforward wage claim still takes 6–12 months to judgment.

Legal fees for labour court are modest (court fees are capped and often waived for workers), but you'll want a lawyer for anything involving multiple years of service or disputed termination grounds. For more on employment disputes, see our employment answers.