Engage In Egypt

About Egypt

Capital City

Cairo

Population

As of March 2024, the estimated population of Egypt is 112.7 million.

Currency

The currency in Egypt is the Egyptian Pound (EGP). The currency symbol is E£.

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Overview

Egypt, officially known as the Arab Republic of Egypt, is a transcontinental country in North Africa. It borders the Mediterranean Sea to the north, the Gaza Strip and Israel to the northeast, the Red Sea to the east, Sudan to the south, and Libya to the west. Egypt is renowned for its rich history, ancient civilization, and iconic landmarks such as the Great Pyramids of Giza, the Sphinx, and the Nile River. With a population of approximately 109.5 million people, Egypt is the 15th most populous country in the world. The capital and largest city is Cairo. The country’s official language is Arabic, and the national language is Egyptian Arabic. Egypt has a unitary semi-presidential republic form of government. The president, serves as the chief of state, while the prime minister is the head of government. The government structure includes a Parliament with an upper house called the Senate and a lower house called the House of Representatives. The country’s constitution was established on January 18, 2014. Egypt’s economy is a mixed system combining private freedom elements with centralized economic planning and government regulation. The country has a diverse economy with sectors such as agriculture, industry, tourism, and services playing significant roles. Egypt is a member of the League of Arab States (Arab League) and the Common Market for Eastern and Southern Africa (COMESA). With its rich cultural heritage and strategic geopolitical location, Egypt continues to captivate the world with its historical significance and vibrant present.

Employment Relationship

Permanent Employment

The Labor Code of Egypt defines permanent employment as work performed for an indefinite term. Employment contracts can be concluded for an indefinite period and renewed for similar periods by mutual agreement. An employment contract is considered to be indefinite where: It is not written The duration is not specified If it was initially for a fixed period, but both parties continue to perform under the contract after its expiration without a written agreement  

Fixed-Term or Specific-Purpose Contracts

In Egypt, the Labor Code requires employment contracts to be in writing. The contract must be written in Arabic, and 4 copies must be provided: for the employer, for the employee, for submission to the social insurance office, and for the relevant administrative authority. The fourth copy of the employment contract, which must be deposited with the competent Labour Directorate, may be submitted either in person (hard copy) or electronically via the Directorate’s official email address. Electronic submission must be sent from the company’s officially registered email and include the required documentation. The same submission requirements apply to contract renewals and to notices of non-renewal or termination, which must be filed within 15 days of the relevant event. Employers are not required to submit the fourth copy for indefinite-term contracts concluded before September 1, 2025. However, fixed-term contracts concluded before that date must be submitted upon their first renewal. For employees who do not speak Arabic, employers must prepare the employment contract in both Arabic and the employee's language. The Arabic version shall prevail in the event of a discrepancy in interpretation. The contract must contain the following information: The name of the employer and the workplace address The name of the employee, their qualifications, profession, or craft, social insurance number, and home address The nature and kind of work that is the subject of the contract The wages to be paid to the employee, as well as the benefits in cash and in kind that were agreed upon The probation period, if there is to be one Any non-compete or non-solicitation agreements If an employer wishes to conclude a non-compete or non-solicitation agreement with the employee, it must be in writing. The clause should stipulate what activities the employee is prohibited from engaging in, how long the employee must refrain from engaging in the activity, and in what geographic area. The clause can also stipulate compensation for breaching the terms of the clause. No specific regulations in Egyptian law define limitations on these agreements, but the agreement can only prohibit activity so far as it harms the employer. 

Temporary Employment Contratcs

The Egyptian Labor Law classifies temporary workers into 3 categories. Temporary Work: tasks related to the employer's business, limited in duration or purpose Casual Work: unrelated to the employer’s core business and not exceeding 6 months Seasonal Work: work performed during recognized recurring seasons The Labor Law allows for multiple renewals of temporary labor contracts by express agreement between both parties.

Probationary Period

The probation period in an individual employment contract may not exceed 3 months, and an employee cannot be placed on probation more than once with the same employer.

Working Hours

In Egypt, the Labor Law stipulates that the standard working hours are 48 hours a week or 8 hours a day. This does not include the time given to an employee for meals and rest. A workday must include 1 or more rest and meal periods that total at least 1 hour. The total working hours, including rest periods, cannot exceed 10 hours a day. Rest periods are considered part of the employee's workday if they remain on-site during those periods. Employees who engage in work that is intermittent by nature or of a special nature are exempt from this restriction. In such cases, the total time the employee is present at the establishment shall not exceed 12 hours per day.

Holidays / PTO

Statutory Holidays

2026

  • January 7 - Coptic Christmas Day
  • January 25 - Revolution Day January 25
  • January 29 - Day off for Revolution Day January 25
  • March 21 - Eid el Fitr
  • March 22 - Eid el Fitr Holiday
  • March 23 - Eid el Fitr Holiday
  • April 13 - Spring Festival
  • April 25 - Sinai Liberation Day
  • May 1 - Labor Day
  • May 26 - Arafat Day
  • May 27 - Eid al-Adha
  • May 28 - Eid al-Adha Holiday
  • May 29 - Eid al-Adha Holiday
  • June 17 - Muharram
  • June 30 - June 30 Revolution
  • July 2 - Day off for June 30 Revolution
  • July 23 - Revolution Day July 23
  • August 26 - Prophet Mohamed's Birthday
  • October 6 - Armed Forces Day
  • October 8 - Day off for Armed Forces Day

2027

  • January 7 - Coptic Christmas Day
  • January 25 - Revolution Day January 25
  • January 28 - Day off for Revolution Day January 25
  • March 10 - Eid el Fitr
  • March 11 - Eid el Fitr Holiday
  • March 12 - Eid el Fitr Holiday
  • April 25 - Sinai Liberation Day
  • May 1 - Labor Day
  • May 3 - Spring Festival
  • May 16 - Arafat Day
  • May 17 - Eid al-Adha
  • May 18 - Eid al-Adha Holiday
  • May 18 - Eid al-Adha Holiday
  • May 19 - Eid al-Adha Holiday
  • May 19 - Eid al-Adha Holiday
  • June 7 - Muharram
  • June 30 - June 30 Revolution
  • July 1 - Day off for June 30 Revolution
  • July 23 - Revolution Day July 23
  • August 15 - Prophet Mohamed's Birthday
  • October 6 - Armed Forces Day
  • October 7 - Day off for Armed Forces Day

Paid Annual Leave

According to Egyptian labor law, employees are entitled to paid annual leave that excludes official holidays, public occasions, and weekly rest days. Employees are entitled to 15 days of paid annual leave in their first year of service and 21 days of paid annual leave starting from the second year. Employees who have completed 10 years of service with 1 or more employers, or who are over 50 years old, are entitled to 30 days. Employees with disabilities or dwarfism are entitled to 45 days.  For employees who have completed a period of service of less than 1 year, annual leave is granted proportionally to the time spent in service, provided the employee has completed at least 6 months of service with the employer. For employees working in hazardous, unhealthy, or remote locations, the duration of annual leave is increased by 7 days.

Sick Leave

In Egypt, the labor code provides employees with sick leave if their illness is confirmed by a report from the relevant medical authorities. During the period of sickness, the worker is entitled to wage replacement compensation from the Public Authority for Health Insurance. The employee is eligible for sick leave with a sickness allowance up to 180 days in a year.  The sickness allowance is paid by the Public Authority for Health Insurance as 75% of the daily wages of the employee for the first 90 days of the sickness and 85% of the daily wages for the next 90 days of sickness. In the case of tuberculosis, mental illness, or a chronic disease, 100% of the wage is paid while the employee is sick until recovery.

Maternity Leave

The Egyptian Labour Law provides that female employees are entitled to 4 months of paid maternity leave. Leave is compulsory for 45 days after childbirth. An employee is required to submit a medical certificate indicating the expected date of delivery. Employees are entitled to maternity leave 3 times during their period of service with the employer. The daily work hours for a pregnant employee are reduced by at least 1 hour beginning from the sixth month of pregnancy. Employers may not require a pregnant employee to work overtime during her pregnancy or for up to 6 months after the delivery. An employer is prohibited from terminating a female worker during her maternity leave. 

Paternity Leave

Employees are entitled to 1 day of paid emergency leave on the day of their child's birth and up to 3 times during their total period of service, even if they are employed by different employers. 

Termination of Employment

Notice Period

Under Egypt’s Labour Law, an employer may terminate an open-ended contract only by giving at least 3 months’ written notice. The notice period begins when the employee receives it, cannot be waived or shortened, and the contract remains fully in force during this time. Notice cannot be issued while the employee is on leave, and sick leave pauses the notice period. If the employer terminates the contract, the employee is entitled to paid time to job-search (1 day per week or 8 hours weekly). If the employer terminates without notice or ends the contract early, they must pay wages equal to the full notice period or the remaining portion. Employees may be dismissed without notice only for grave misconduct as defined in the law.

Severance Benefits

Under Egypt’s Labour Law, employers must provide severance in several situations. If the employer terminates a fixed-term contract longer than 5 years, the employee is entitled to 1 month’s wage for each year of service. Employees are also owed severance for service after age 60 (or before age 18 for apprentices) when those periods are not covered by the Social Insurance and Pensions Law. This is calculated at half a month’s wage for each of the first 5 years and 1 month per year thereafter, based on the employee’s last wage. Any severance due is also payable to beneficiaries if the employee dies. Additionally, for terminations due to economic reasons, employees are entitled to 1 month’s wage for each of the first 5 years of service and 1 and a half months’ wage for each subsequent year.

Social Security

Pension

Egypt operates a mandatory, government-run pension system. The current unified social insurance system, which became effective January 1, 2020, applies one set of rules and a single pension formula to almost all employees, raises the minimum qualifying period, and brings old-age, disability, death, work-injury, sickness, and unemployment benefits under one combined fund. Insured persons qualify for an old-age pension once they reach age 60 with at least 180 months of contributions. A pension is calculated by looking at the settlement salary (the average salary on which contributions were actually paid), the total number of contribution months, and the actuarial age factor, which adjusts the amount based on the age at retirement. The formula takes the settlement salary, multiplies it by the number of contribution months, divides it by 12, and then divides it by the actuarial factor. This is done separately for periods before and after January 1, 2020, and the 2 parts are added together. The final pension must follow several rules: it cannot exceed 80% of the relevant salary, and cannot be lower than 65% of the minimum contributory salary or EGP 1,755 (Egyptian pounds), effective January 1, 2026. The National Bank of Egypt and Misr Life Insurance now offer Egyptians abroad a pension product for contributions made in U.S. Dollars called Maash Bokra. Clients of the National Bank of Egypt who are within Egypt may also purchase 1 of these policies.

Dependents/Survivors Benefit

Egypt provides monthly survivor pensions to the dependents of an insured person or pensioner who dies, funded through the Old-Age, Disability, and Death Insurance account. Eligible survivors include the widow or widower, sons, daughters, parents, and siblings. Sons and brothers receive benefits until age 21, with extensions for disability, full-time study, or unemployment; daughters and sisters receive benefits until marriage; and parents or siblings qualify only if financially dependent. If entitlement ends due to marriage or a higher-priority pension, the survivor receives a one-time severance equal to one year of pension (minimum EGP 500 (Egyptian pounds), and their share is redistributed among remaining beneficiaries. Survivors also receive a death grant equal to the pension or wage for the month of death plus two additional months, along with funeral expenses equal to three months of the deceased’s pension. If death results from a work-related accident, survivors receive the pension plus an additional lump sum equal to the settlement wage × 12 × an age factor, increased by 50% for occupational deaths and doubled if there are no eligible survivors.

Invalidity Benefit

Egypt’s social insurance system provides disability pensions to insured persons of any age who develop a total permanent disability or a partial disability that prevents them from performing their original job. A disability pension is paid if the disability occurs while insured, within 1 year after employment ends, or later with at least 180 months of contributions; some cases also require at least 3 consecutive or 6 non-consecutive months of contributions. The pension is calculated under the standard social insurance formula and cannot exceed 80% of the settlement wage, which is the insured’s inflation-adjusted average monthly contributory wage, capped by the maximum contributory wage. Work-related disabilities receive enhanced benefits: total disability or death provides 80% of the settlement wage with an additional 1% annual increase until retirement age; partial disabilities of 35% or more receive a proportional pension; disabilities below 35% receive a lump sum equal to the disability percentage applied to 48 months of pension. Non-work-related disabilities follow the general formula, with the pension increased to at least 65% of the highest settlement wage in certain cases. When disability or death leads to pension entitlement, an additional lump sum equal to the settlement wage × 12 × an age factor is paid, increased by 50% for work injuries and doubled if death occurs with no eligible survivors. During temporary incapacity, the insured receives full wage compensation from the day after the injury until recovery or confirmation of permanent disability.

Taxation of Compensation and Benefits

Personal Income Tax

The income tax code in Egypt defines the tax year as the fiscal year beginning January 1 and ending on December 31. The income tax is imposed on the total income earned in Egypt by resident and non-resident individuals. Income tax is applicable on annual net income above EGP 40,000 (Egyptian pounds). The income tax rates range from 10% to 27.5% on annual taxable income. Both residents and non-residents are entitled to an annual salary tax exemption of EGP 20,000.

Immigration

Types of Visas

Officially recognized short-stay categories include tourist visas (for general tourism), business visas (for meetings and commercial visits), and transit visas (for short stays while connecting through Egypt), which can be issued as single- or multiple-entry depending on purpose and eligibility. 

The following visa categories are available in Egypt:

  • Single-entry visas -  valid for 90 days and allow a maximum stay of 30 days
  • Multiple-entry visas -  valid for 180 days and allow a collective stay of 30 days
  • Transit visas - short stays while connecting through Egypt

 

Work Permit

Per the Labor Code of Egypt, foreign nationals who wish to work in the country are required to obtain a work permit and are authorized to enter and reside in the country. Employers must obtain a work permit before employing foreign nationals and notify the relevant directorate within 7 days from the date the foreign worker begins work or the employment relationship is terminated. The employer must register foreign employees with the competent labor directorate under the Ministry of Labour and notify the agency of specific details such as their personal data, job requirements, and qualifications for the job.

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